Gas Act 1986

• (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (3) In Part II, for the words “section 11 of the principal Act”, wherever they occur, there shall be substituted the words “ Schedule 3 to the principal Act ”.

• (4) In section 4(2), the words from “shall relate only” to “statutory corporation and” shall be omitted.

• (5) In section 5(5), for the words “inform the Minister that they object” there shall be substituted the words “ informs the Minister that he objects ”.

• (6) In section 6(1), for the word “apply” there shall be substituted the word “ applies ”, for the word “satisfy” there shall be substituted the word “ satisfies ” and for the words “they think” there shall be substituted the words “ he thinks ”.

• (7) In section 6(2), for the words “have taken” there shall be substituted the words “ has taken ” and for the word “them” there shall be substituted the word “ him ”.

• (8) In section 6(3), for the word “them” there shall be substituted the word “ him ”.

• (9) In section 6(4), for the word “their” there shall be substituted the word “ his ” and for the word “cause” there shall be substituted the word “ causes ”.

• (10) In section 6(8), for the word “apply” there shall be substituted the word “ applies ” and for the word “they” there shall be substituted the word “ he ”.

• (11) In section 13(3), for the word “propose” there shall be substituted the word “ proposes ” and for the words “the said section 11” there shall be substituted the words “ the said Schedule 3 ”.

• (12) In section 15(2), for the word “their” there shall be substituted the word “ his ”.

• (13) In section 16(1), for the words “develop or operate” there shall be substituted the words “ develops or operates ”.

• (14) In sections 16(5) and 18(9), for the word “fail” there shall be substituted the word “ fails ”.

• (15) In section 17(5), for the word “them” there shall be substituted the word “ him ”.

• (16) In section 19(3)—

• (a) at the beginning there shall be inserted the words “ Every public gas supplier to whom a storage authorisation order applies during any period shall pay to the Minister such proportion as the Minister may determine of ”; and

• (b) for the words “shall be repaid to him by the Gas Council and” there shall be substituted the words “ and any sums received by the Minister under this subsection shall be ”.

• (17) In section 19(4), for the words “the Gas Council in respect of sums payable by them” there shall be substituted the words “ a public gas supplier in respect of sums payable by him ”.

• (18) In section 21(1), for the words “Section 68(1)” there shall be substituted the words “ Section 43(1) ”.

• (19) In section 21(2), for the words “Section 69(1)” there shall be substituted the words “ Section 43(2) ” and for the words “section 68(1)” there shall be substituted the words “ section 43(1) ”.

• (20) In section 21(3), the words “any gas authority or” and the words “authority or”, in the second place where they occur, shall be omitted.

• (21) In section 22(1), for the words “Section 70” there shall be substituted the words “ Section 46 ”.

• (22) In section 22(2), for the words “Section 73 of the principal Act” there shall be substituted the words “ Section 46 of the Gas Act 1972 ” and for the words “the principal Act”, in the second place where they occur, there shall be substituted the words “ that Act ”.

• (23) In section 27(1), for the words “the Corporation” there shall be substituted the words “ the public gas supplier concerned ”.

• (24) In section 28(1)—

• (a) the definition of “gas authority” shall be omitted; and

• (b) for the definition of “large-scale map” there shall be substituted the following definition—

“large-scale map” means a map drawn on a scale not less than 1 in 10,560;

• (25) In section 32(2), for the words “the Gas Act 1948, ” Area Board ’ has the same meaning as in” there shall be substituted the words “ the Gas Act 1986, ” public gas supplier ’ has the same meaning as in Part I of ”.

• (26) In Schedule 2—

• (a) for the words “the applicants”, wherever they occur, there shall be substituted the words “ the applicant ”;

• (b) for the words “their proposals”, wherever they occur, there shall be substituted the words “ his proposals ”;

• (c) for the words “their application”, wherever they occur, there shall be substituted the words “ his application ”;

• (d) for the words “section 73 of the principal Act”, wherever they occur, there shall be substituted the words “ section 46 of the Gas Act 1972 ”;

• (e) in paragraph 5(2), for the words “the applicants” there shall be substituted the words “ the applicant’s ”;

• (f) in paragraph 9(1), for the words “they have been, or expect” there shall be substituted the words “ he has been, or expects ” and for the words “they must” there shall be substituted the words “ he must ”;

• (g) in paragraph 9(2), for the word “have”, in both places where it occurs, there shall be substituted the word “ has ”; and

• (h) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (27) In Schedule 6—

• (a) for the words “the applicants”, wherever they occur, there shall be substituted the words “ the applicant ”;

• (b) in paragraph 1(2), for the words “their application” there shall be substituted the words “ his application ”;

• (c) in paragraph 1(4), for the words “their proposals” there shall be substituted the words “ his proposals ”;

• (d) in paragraph 5, for the words “gas board” there shall be substituted the words “ public gas supplier ”;

• (e) in paragraph 7(1), for the words “their powers” there shall be substituted the words “ his powers ”; and

• (f) in paragraph 7(2), for the words “their duty” there shall be substituted the words “ his duty ”.

The Local Government (Scotland) Act 1966

7

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

The General Rate Act 1967

8

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

The Transport Act 1968

9

In section 109(2) of the Transport Act 1968 (power of certain bodies to maintain or take over waterways and connected works), for paragraph (d) there shall be substituted the following paragraph—

(d) a public gas supplier within the meaning of Part I of the Gas Act 1986;

.

The Post Office Act 1969

10

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

The Chronically Sick and Disabled Persons Act 1970

11

In section 14(1) of the Chronically Sick and Disabled Persons Act 1970 (miscellaneous advisory committees), for the words “the National Gas Consumers’ Council and the Regional Gas Consumers’ Councils” there shall be substituted the words “ the Gas Consumers’ Council ”.

The Town and Country Planning Act 1971

12

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

The Town and Country Planning (Scotland) Act 1972

13

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

The Land Compensation Act 1973

14

• (1) In section 44(2) of the Land Compensation Act 1973 (compensation for injurious affection), for the words “paragraph 13 of Schedule 2 to the Gas Act 1972” there shall be substituted the words “ paragraph 7 of Schedule 3 to the Gas Act 1986 ”.

• (2) In section 58(2) of that Act (determination of material detriment where part of house etc. proposed for compulsory acquisition), for the words “paragraph 14 of Schedule 2 to the Gas Act 1972” there shall be substituted the words “ paragraph 8 of Schedule 3 to the Gas Act 1986 ”.

The Fair Trading Act 1973

15

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

The Land Compensation (Scotland) Act 1973

16

• (1) In section 41(2) of the Land Compensation (Scotland) Act 1973 (compensation for injurious affection), for the words “paragraph 26 of Schedule 2 to the Gas Act 1972” there shall be substituted the words “ paragraph 24 of Schedule 3 to the Gas Act 1986 ”.

• (2) In section 54(2) of that Act (determination of material detriment where part of house etc. proposed for compulsory acquisition), for the words “paragraph 24 of Schedule 2 to the Gas Act 1972” there shall be substituted the words “ paragraph 22 of Schedule 3 to the Gas Act 1986 ”.

The Local Government Act 1974

17

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

The Health and Safety at Work etc. Act 1974

18

At the end of section 34 of the Health and Safety at Work etc. Act 1974 (extension of time for bringing summary proceedings) there shall be inserted the following subsection—

(6) In the application of subsection (4) above to Scotland, after the words ” applies to ’ there shall be inserted the words ” any offence under section 33(1)(c) above where the health and safety regulations concerned were made for the general purpose mentioned in section 18(1) of the Gas Act 1986 and

.

The Consumer Credit Act 1974

19

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

The Oil Taxation Act 1975

20

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

The Local Government (Scotland) Act 1975

21

In Schedule 1 to the Local Government (Scotland) Act 1975—

• (a) in paragraphs 3 to 3B, for references to the Corporation there shall be substituted references to a public gas supplier;

• (b) in paragraph 3, there shall be added at the end the following sub-paragraph—

(3) In this paragraph and in paragraphs 3A and 3B below— - “gas” means any substance which is or (if it were in a gaseous state) would be gas within the meaning of Part I of the Gas Act 1986; - “public gas supplier” has the same meaning as in Part I of the Gas Act 1986; - “private gas supplier” means a person who is authorised by section 6 of the said Act of 1986, or by an authorisation under section 8 of that Act, to supply gas through pipes to consumers’ premises.

; and

• (c) in paragraphs 3A and 3B, for references to a private supplier there shall be substituted references to a private gas supplier.

The Coal Industry Act 1975

22

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

The Restrictive Trade Practices Act 1976

23

In section 41(1)(a) of the Restrictive Trade Practices Act 1976 (disclosure of information), after the words “the Director General of Telecommunications,” there shall be inserted the words “ the Director General of Gas Supply, ” and after the words “or the Telecommunications Act 1984” there shall be inserted the words “ or the Gas Act 1986 ”.

The Local Government (Miscellaneous Provisions) Act 1976

24

In section 33 of the Local Government (Miscellaneous Provisions) Act 1976 (restoration or continuation of supply of water, gas or electricity), for the word “undertakers”, wherever it occurs, there shall be substituted the word “ person ”.

The Land Drainage Act 1976

25

In section 112(2)(a) of the Land Drainage Act 1976 (protection of nationalised undertakings etc.), for the words “the British Gas Corporation” there shall be substituted the words “ any public gas supplier within the meaning of Part I of the Gas Act 1986 ”.

The Energy Act 1976

26

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

• (2) In section 12(2) of that Act (disposal of gas by flaring), for the words “the British Gas Corporation” there shall be substituted the words “ a public gas supplier within the meaning of Part I of the Gas Act 1986 ”.

The Estate Agents Act 1979

27

In section 10(3)(a) of the Estate Agents Act 1979 (exceptions to restrictions on disclosure of information), after the words “the Telecommunications Act 1984” there shall be inserted the words “or the Gas Act 1986” and after the words “the Director General of Telecommunications,” there shall be inserted the words “the Director General of Gas Supply,”.

The Competition Act 1980

28

• (1) In subsection (2)(a) of section 19 of the Competition Act 1980 (exceptions to restriction on disclosure of information), after the words “the Director General of Telecommunications,” there shall be inserted the words “the Director General of Gas Supply,”.

• (2) In subsection (3) of that section, at the end there shall be inserted the following paragraph—

(h) the Gas Act 1986.

The Acquisition of Land Act 1981

29

In section 28 of the Acquisition of Land Act 1981 (acquisition of rights over land by the creation of new rights), paragraph (a) shall be omitted and after paragraph (f) there shall be inserted the following paragraph—

(g) paragraph 1 of Schedule 3 to the Gas Act 1986.

The Building Act 1984

30

In section 80(3) of the Building Act 1984 (notice to local authority of intended demolition), for paragraph (b) there shall be substituted the following paragraph—

(b) any public gas supplier (as defined in Part I of the Gas Act 1986) in whose authorised area (as so defined) the building is situated,

.

The Insolvency Act 1985

31

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

The Bankruptcy (Scotland) Act 1985

32

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

SCHEDULE 8

Part I — Provisions and Savings Coming into Force on Appointed Day

1

• (1) A notification received or given by the Secretary of State under subsection (1) of section 29A of the 1972 Act which is effective on the appointed day shall have effect as if received or given by the Secretary of State under subsection (1) of section 6 of this Act; and the provisions of this Act shall apply accordingly.

• (2) A direction given by the Secretary of State under subsection (2) of the said section 29A which is effective on the appointed day shall have effect as if given by the Secretary of State under subsection (2) of the said section 6; and the provisions of this Act shall apply accordingly.

2

A consent given or having effect as if given under section 29 of the 1972 Act by the Secretary of State which is effective on the appointed day shall have effect as an authorisation granted by the Secretary of State under section 8 of this Act; and the provisions of this Act shall apply accordingly.

3

Any regulations made under section 25 of the 1972 Act which are effective on the appointed day shall have effect as if—

• (a) they were made under section 12 of this Act; and

• (b) references in those regulations to the Corporation were references to a public gas supplier within the meaning of Part I of this Act;

and the provisions of this Act shall apply accordingly.

4

Any regulations made or having effect as if made under section 29B of the 1972 Act which are effective on the appointed day shall have effect as if—

• (a) they were made under section 16 of this Act; and

• (b) references in those regulations to the Corporation were references to a public gas supplier within the meaning of Part I of this Act;

and the provisions of this Act shall apply accordingly.

5

Any meter which immediately before the appointed day is, or is treated as, stamped under section 30 of the 1972 Act shall be treated as stamped under section 17 of this Act.

6

• (1) This paragraph applies to any regulations made or having effect as if made under section 31 of the 1972 Act which—

• (a) are effective on the appointed day; and

• (b) do not make such provision as is mentioned in subsections (2) to (4) of that section or in section 42(2) of that Act.

• (2) Any regulations to which this paragraph applies shall have effect as if made under section 15 of the Health and Safety at Work etc. Act 1974 for the general purpose of protecting the public from personal injury, fire, explosions and other dangers arising from the transmission or distribution of gas through pipes, or from the use of gas supplied through pipes; and, subject to sub-paragraph (3) below, the provisions of Part I of that Act and the provisions of this Act shall apply accordingly.

• (2A) In sub-paragraph (2) above “gas” has the same meaning as in Part I of this Act.

• (3) Section 1(2) of the said Act of 1974 shall have effect as if any regulations to which this paragraph applies were in force under an enactment specified in the third column of Schedule 1 to that Act.

• (4) Section 20 of the said Act of 1974 shall have effect as if anything done before the appointed day in contravention of any regulations to which this paragraph applies has been done on or after that day.

7

• (1) A direction given by the Secretary of State under section 17 of the Oil and Gas (Enterprise) Act 1982 which is effective on the appointed day shall have effect as if given by the Director under section 19 of this Act; and the provisions of this Act shall apply accordingly.

• (2) Any reference in a deed or other instrument to the functions of the Corporation shall be taken to include a reference to any obligations arising under an agreement entered into by the Corporation in pursuance of directions given or having effect as if given under section 19 of this Act.

8

• (1) A notice given to the Secretary of State under subsection (1) of section 15 of the Oil and Gas (Enterprise) Act 1982 which is effective on the appointed day shall have effect as if given to the Director under subsection (1) of section 20 of this Act and as if any map accompanying that notice and complying with the requirements of subsection (2) of the said section 15 complied with the requirements of subsection (2) of the said section 20; and the provisions of this Act shall apply accordingly.

• (2) A notice published by the Secretary of State under section 15(3) of the said Act of 1982 which is effective on the appointed day shall have effect as if published by the Director under section 20(3) of this Act; and the provisions of this Act shall apply accordingly.

• (3) A direction given by the Secretary of State under section 15(4) of the said Act of 1982 which is effective on the appointed day shall have effect as if given by the Director under section 20(4) of this Act; and the provisions of this Act shall apply accordingly.

9

A direction given by the Secretary of State under section 16(1) of the Oil and Gas (Enterprise) Act 1982 which is effective on the appointed day shall have effect as if given by the Director under section 21(1) of this Act; and the provisions of this Act shall apply accordingly.

10

Any maximum prices fixed by the Corporation under paragraph 12 of Schedule 4 to the 1972 Act which are effective on the appointed day shall have effect as if fixed by the Director under section 37 of this Act.

11

Any office fixed or address published before the appointed day for the purposes of section 44 of the 1972 Act shall be deemed on and after that day to have been fixed or published for the purposes of section 46(3) of this Act.

12

• (1) Where immediately before the appointed day there is in force an agreement which—

• (a) confers or imposes on the Corporation any rights or liabilities; and

• (b) refers (in whatever terms and whether expressly or by implication) to any provision of the 1972 Act, to the Corporation’s statutory gas undertaking or to statutory purposes,

the agreement shall have effect, in relation to anything falling to be done on or after that day, as if for that reference there were substituted a reference to the corresponding provision of this Act, to the Corporation’s undertaking as a public gas supplier or, as the case may require, to purposes connected with the supply of gas through pipes to premises in the Corporation’s authorised area.

• (2) In this paragraph “authorised area” and “public gas supplier” have the same meanings as in Part I of this Act.

• (3) References in this paragraph to an agreement include references to a deed, bond or other instrument.

13

Where—

• (a) any sum was deposited with the Corporation by way of security under any provision of the 1972 Act; and

• (b) on and after the appointed day that sum is treated by the Corporation as deposited under any provision of this Act,

any period beginning three months or less before that day, being a period during which the sum was deposited with the Corporation, shall be treated for the purposes of the payment of interest on that sum as a period during which the sum was deposited under that provision of this Act.

14

The repeal by this Act of section 43 of the 1972 Act shall not affect the operation of that section in relation to offences committed before the appointed day.

15

The repeal by this Act of section 46 of the 1972 Act shall not affect the operation of that section as applied by section 22 of the Gas Act 1965.

16

The repeal by this Act of Schedule 4 to the 1972 Act shall not affect the operation on or after the appointed day of so much of that Schedule as relates to the determination by arbitration of any matter which immediately before that day falls to be determined by arbitration under that Schedule.

17

The repeal by this Act of any provision by virtue of which any enactment applies in relation to a person carrying on a gas undertaking shall not affect the continuing validity of anything done under that enactment before the appointed day; and that enactment shall continue for the purposes of anything so done to have effect on and after that day as if the enactment continued to apply in relation to the Corporation and, after the transfer date, to the successor company as it applied in relation to the Corporation before the appointed day.

Part II — Provisions and Savings Coming into Force on Transfer Date

18

An authorisation granted under section 7 of this Act to the Corporation which is effective on the transfer date shall have effect as if granted to the successor company.

19

A declaration made by the Corporation in accordance with regulations made, or having effect as if made, under section 12(3) of this Act which is effective on the transfer date shall have effect as if made by the successor company.

20

A tariff fixed, or having effect as fixed, under section 14(1) of this Act by the Corporation which is effective on the transfer date shall have effect as if fixed by the successor company.

21

A direction given, or having effect as if given, under section 19 of this Act to the Corporation which is effective on the transfer date shall have effect as if given to the successor company.

22

• (1) A notice given, or having effect as if given, under section 20(1) of this Act by the Corporation which is effective on the transfer date shall have effect as if given by the successor company.

• (2) A direction given, or having effect as if given, under section 20(4) of this Act to the Corporation which is effective on the transfer date shall have effect as if given to the successor company.

23

A direction given, or having effect as if given, under section 21(1) this Act to the Corporation which is effective on the transfer date shall have effect as if given to the successor company.

24

Any office fixed or address published by the Corporation for the purposes of section 46(3) of this Act, and any office or address having effect as if so fixed or published, shall be deemed on and after the transfer date to have been so fixed or published by the successor company.

25

A direction given under section 63 of this Act to the Corporation which is effective on the transfer date shall have effect as if given to the successor company.

26

A compulsory purchase order made by the Corporation which was made, or has effect as if made, by virtue of Schedule 3 to this Act and is effective on the transfer date shall have effect as if made by the successor company.

27

• (1) Where immediately before the transfer date there is in force an agreement which—

• (a) confers or imposes on the Corporation any rights or liabilities which vest in the successor company by virtue of section 49 of this Act; and

• (b) refers (in whatever terms and whether expressly or by implication) to a member or officer of the Corporation,

the agreement shall have effect, in relation to anything falling to be done on or after that date, as if for that reference there were substituted a reference to such person as that company may appoint or, in default of appointment, to the officer of that company who corresponds as nearly as may be to the member or officer of the Corporation in question.

• (2) References in this paragraph to an agreement include references to a deed, bond or other instrument.

28

• (1) Any agreement made, transaction effected or other thing done by, to or in relation to the Corporation which is in force or effective immediately before the transfer date shall have effect as if made, effected or done by, to or in relation to the successor company, in all respects, as if the successor company were the same person, in law, as the Corporation, and accordingly references to the Corporation—

• (a) in any agreement (whether or not in writing) and in any deed, bond or instrument;

• (b) in any process or other document issued, prepared or employed for the purposes of any proceeding before any court or other tribunal or authority; and

• (c) in any other document whatsoever (other than an enactment) relating to or affecting any property, right or liability of the Corporation which vests by virtue of section 49 of this Act in the successor company,

shall be taken as referring to the successor company.

• (2) Nothing in sub-paragraph (1) above shall be taken as applying in relation to any agreement made, transaction effected or other thing done with respect to any right or liability of the Corporation which vests by virtue of section 50 of this Act in the Treasury.

29

It is hereby declared for the avoidance of doubt that—

• (a) the effect of section 49 of this Act in relation to any contract of employment with the Corporation in force immediately before the transfer date is merely to modify the contract by substituting the successor company as the employer (and not to terminate the contract or vary it in any other way); and

• (b) that section is effective to vest the rights and liabilities of the Corporation under any agreement or arrangement for the payment of pensions, allowances or gratuities in the successor company along with all other rights and liabilities of the Corporation;

and accordingly any period of employment with the Corporation or a wholly owned subsidiary of the Corporation shall count for all purposes as a period of employment with the successor company or (as the case may be) a wholly owned subsidiary of the successor company.

30

• (1) Any certificate issued or other thing done in pursuance of any regulation made or having effect as if made under section 21 of the 1972 Act which is in force or effective immediately before the transfer date shall have effect as if issued or done in pursuance of the corresponding enactment, regulation or rule relating to securities issued under the National Loans Act 1968.

• (2) Any agreement made, transaction effected or other thing done in relation to any British Gas 3% Guaranteed Stock, 1990-95 which is in force or effective immediately before the transfer date shall have effect as if made, effected or done in relation to that Stock as renamed under subsection (3) of that section and, accordingly, references to that Stock in any agreement (whether or not in writing) or in any deed, bond, instrument or other document whatsoever shall be taken as referring to that Stock as so renamed.

• (3) In this paragraph “British Gas Stock” has the same meaning as in section 50 of this Act.

31

• (1) It shall be the duty of the Corporation and of the successor company to take, as and when during the transitional period the successor company considers appropriate, all such steps as may be requisite to secure that the vesting in the successor company by virtue of section 49 of this Act or this paragraph of any foreign property, right or liability is effective under the relevant foreign law.

• (2) During the transitional period, until the vesting in the successor company by virtue of section 49 of this Act or this paragraph of any foreign property, right or liability is effective under the relevant foreign law, it shall be the duty of the Corporation to hold that property or right for the benefit of, or to discharge that liability on behalf of, the successor company.

• (3) Nothing in sub-paragraphs (1) and (2) above shall be taken as prejudicing the effect under the law of the United Kingdom or of any part of the United Kingdom of the vesting in the successor company by virtue of section 49 of this Act or this paragraph of any foreign property, right or liability.

• (4) The Corporation shall have all such powers as may be requisite for the performance of its duty under this paragraph, but—

• (a) it shall be the duty of the successor company during the transitional period to act on behalf of the Corporation (so far as possible) in performing the duty imposed on the Corporation by this paragraph; and

• (b) any foreign property, rights and liabilities acquired or incurred by the Corporation during that period shall immediately become property, rights and liabilities of the successor company.

• (5) References in this paragraph to any foreign property, right or liability are references to any property, right or liability as respects which any issue arising in any proceedings would have been determined (in accordance with the rules of private international law) by reference to the law of a country or territory outside the United Kingdom.

• (6) Any expenses incurred by the Corporation under this paragraph shall be met by the successor company.

32

• (1) Notwithstanding the repeal by this Act of section 8 of the 1972 Act, it shall be the duty of the Corporation to make a report to the Secretary of State in accordance with that section in respect of each financial year of the Corporation ending before the transfer date.

• (2) Notwithstanding the repeal by this Act of section 23 of that Act, it shall be the duty of the Corporation to prepare statements of accounts in accordance with subsection (1)(b) and (2) of that section in respect of each financial year of the Corporation ending before the transfer date, and that section shall continue to apply during the transitional period in relation to those statements and in relation also to the auditing of those statements and of accounts kept in accordance with subsection (1)(a) of that section in respect of that financial year.

• (3) Any expenses incurred by the Corporation under this paragraph shall be met by the successor company.

33

Where by virtue of anything done before the transfer date, any enactment amended by Schedule 7 to this Act has effect in relation to the Corporation, that enactment shall have effect in relation to the successor company as if that company were the same person, in law, as the Corporation.

34

Every provision contained in a local Act, or in subordinate legislation, which is in force immediately before the transfer date and then applicable to the Corporation shall have effect as if—

• (a) for references therein to the Corporation there were substituted references to the successor company; and

• (b) for any reference (however worded and whether expressly or by implication) to the undertaking or business, or any part of the undertaking or business, of the Corporation there were substituted a reference to the undertaking or business, or the corresponding part of the undertaking or business, of the successor company.

35

• (1) Nothing in this Act shall effect the validity of anything done by, or in relation to, the Corporation before the transfer date under or by virtue of the Public Utilities Street Works Act 1950; and anything which, immediately before that date, is in process of being done under, or by virtue of, that Act by or in relation to it (including, in particular, any legal proceedings to which it is a party) may be continued by, or in relation to, the successor company.

• (2) Any notice or direction given or other thing whatsoever done under the said Act of 1950 by the Corporation shall, if effective at the transfer date, continue in force and have effect as if similarly given or done by the successor company.

36

• (1) For the purposes of section 33 of the General Rate Act 1967 (public gas suppliers) the successor company shall be treated as if it were the same person as the Corporation.

• (2) An order under subsection (1) of that section which applies that section to the Corporation and is effective on the transfer date shall have effect as if it applied that section to the successor company.

• (3) An order under subsection (5) of that section which applies in relation to hereditaments occupied by the Corporation and is effective on the tranfer date shall have effect as if it applied to the corresponding hereditaments occupied by the successor company.

37

• (1) Where an asset, or the right to receive an asset, vests in the successor company by virtue of section 49 of this Act, then for the purposes of Part I of the Industry Act 1972 and Part II of the Industrial Development Act 1982—

• (a) so much of any expenditure incurred by the Corporation in providing that asset as is approved capital expenditure (of any description relevant for the purposes of regional development grant) in respect of which no payment of regional development grant has been made to the Corporation shall be treated as having been incurred by the successor company and not by the Corporation; and

• (b) where the asset itself vests in the successor company by virtue of section 49 of this Act, it shall be treated as a new asset if it would have fallen to be so treated if it had remained vested in the Corporation.

• (2) In this paragraph “regional development grant” means a grant under Part I of the Industry Act 1972 or Part II of the Industrial Development Act 1982 and “approved capital expenditure” has the same meaning as it has for the purposes of the provisions relating to regional development grant.

38

An order under section 19 of the Local Government Act 1974 (rating of certain public utilities and other bodies) which applies in relation to hereditaments occupied by the Corporation and is effective on the transfer date shall have effect as if it applied to the corresponding hereditaments occupied by the successor company.

39

An order under section 6 of the Local Government (Scotland) Act 1975 (valuation by formula of certain lands and heritages) which applies in relation to lands and heritages occupied by the Corporation and is effective on the transfer date shall have effect as if it applied in relation to the corresponding lands and heritages occupied by the successor company.

40

The repeal by this Act of section 10 of and Schedule 1 to the Oil and Gas (Enterprise) Act 1982 shall not affect the operation of any scheme made under that section before the transfer date.

41

• (1) Where a distribution is proposed to be declared during the accounting reference period of the successor company which includes the transfer date or before any accounts are laid or filed in respect of that period, sections 270 to 276 of the Companies Act 1985 (accounts relevant for determining whether a distribution may be made by a company) shall have effect as if—

• (a) references in section 270 to the company’s accounts or to accounts relevant under that section; and

• (b) references in section 273 to initial accounts,

included references to such accounts as, on the assumptions stated in sub-paragraph (2) below, would have been prepared under section 227 of that Act in respect of the relevant year.

• (2) The said assumptions are—

• (a) that the relevant year had been a financial year of the successor company;

• (b) that the vesting effected by section 49 of this Act had been a vesting of all the property, rights and liabilities (other than any rights or liabilities which vest in the Treasury by virtue of section 50 of this Act) to which the Corporation was entitled or subject immediately before the beginning of the relevant year and had been effected immediately after the beginning of that year;

• (c) after the value of any asset and the amount of any liability of the Corporation vested in the successor company by virtue of that section had been the value or (as the case may be) the amount assigned to that asset or liability for the purposes of that statement of accounts prepared by the Corporation in respect of the financial year immediately preceding the relevant year;

• (d) that any securities of the successor company issued or allotted before the declaration of the distribution had been issued or allotted before the end of the relevant year; and

• (e) such other assumptions (if any) as may appear to the directors of the successor company to be necessary or expedient for the purposes of this paragraph.

• (3) For the purposes of the said accounts 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 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.

• (4) The said accounts shall not be regarded as statutory accounts for the purposes of section 55 of this Act.

• (5) In this paragraph—

• “complete financial year” means a financial year ending with 31st March;

• “the relevant year” means the last complete financial year of the Corporation ending before the transfer date;

• “securities” has the same meaning as in Part II of this Act.

SCHEDULE 9

Part I — Repeals Coming into Force on Appointed Day

Part II — Repeals Coming into Force on Transfer Date

Part III — Repeals Coming into Force on Dissolution of British Gas Corporation

Acquisition of rights to use storage facilities.

4AA

• (1) The principal objective of the Secretary of State and the Gas and Electricity Markets Authority (in this Act referred to as “the Authority”) in carrying out their respective functions under this Part is to protect the interests of existing and future consumers in relation to gas conveyed through pipes ....

• (1A) Those interests of existing and future consumers are their interests taken as a whole, including—

• (a) their interests in the Secretary of State’s compliance with the duties in sections 1 and 4(1)(b) of the Climate Change Act 2008 (net zero target for 2050 and five-year carbon budgets); ...

• (b) their interests in the security of the supply of gas to them ; and

• (c) their interests in the fulfilment by the Authority, when carrying out its designated regulatory functions, of the designated regulatory objectives.

• (1B) The Secretary of State and the Authority shall carry out their respective functions under this Part in the manner which the Secretary of State or the Authority (as the case may be) considers is best calculated to further the principal objective, wherever appropriate by promoting effective competition between persons engaged in, or in commercial activities connected with, the shipping, transportation or supply of gas conveyed through pipes.

• (1C) Before deciding to carry out functions under this Part in a particular manner with a view to promoting competition as mentioned in subsection (1B), the Secretary of State or the Authority shall consider—

• (a) to what extent the interests referred to in subsection (1) of consumers would be protected by that manner of carrying out those functions; and

• (b) whether there is any other manner (whether or not it would promote competition as mentioned in subsection (1B)) in which the Secretary of State or the Authority (as the case may be) could carry out those functions which would better protect those interests.

• (2) In performing the duties under subsections (1B) and (1C), the Secretary of State or the Authority shall have regard to—

• (a) the need to secure that, so far as it is economical to meet them, all reasonable demands in Great Britain for gas conveyed through pipes are met; and

• (b) the need to secure that licence holders are able to finance the activities which are the subject of obligations imposed by or under this Part , the Utilities Act 2000 , Part 5 of the Energy Act 2008 or section 4, Part 2, , sections 26 to 29 of the Energy Act 2010, or Chapter 1 of Part 2, Chapters 2 and 3 of Part 4 and sections 245 to 247 of the Energy Act 2023 ; and

• (c) the need to contribute to the achievement of sustainable development.

• (3) In performing the duties under subsections (1B), (1C) and (2), the Secretary of State or the Authority shall have regard to the interests of—

• (a) individuals who are disabled or chronically sick;

• (b) individuals of pensionable age;

• (c) individuals with low incomes; and

• (d) individuals residing in rural areas;

but that is not to be taken as implying that regard may not be had to the interests of other descriptions of consumer.

• (4) The Secretary of State and the Authority may, in carrying out any function under this Part, have regard to—

• (a) the interests of consumers in relation to electricity conveyed by distribution systems or transmission systems (within the meaning of the Electricity Act 1989); and

• (b) any interests of consumers in relation to—

• (i) communications services and electronic communications apparatus, or

• (ii) water services or sewerage services (within the meaning of the Water Industry Act 1991),

which are affected by the carrying out of that function.

• (5) Subject to subsections (1B) and (2) and to section 132(2) of the Energy Act 2013 (duty to carry out functions in manner best calculated to further delivery of policy outcomes), the Secretary of State and the Authority shall carry out their respective functions under this Part in the manner which he or it considers is best calculated—

• (a) to promote efficiency and economy on the part of persons authorised by licences or exemptions to carry on any activity, and the efficient use of gas conveyed through pipes;

• (b) to protect the public from dangers arising from the conveyance of gas through pipes or from the use of gas conveyed through pipes or the provision of a smart meter communication service;

• (ba) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (c) to secure a diverse and viable long-term energy supply,

and ... shall have regard, in carrying out those functions, to the effect on the environment of activities connected with the conveyance of gas through pipes or the provision of a smart meter communication service.

• (5A) In carrying out their respective functions under this Part in accordance with the preceding provisions of this section the Secretary of State and the Authority must each have regard to—

• (a) the principles under which regulatory activities should be transparent, accountable, proportionate, consistent and targeted only at cases in which action is needed; and

• (b) any other principles appearing to him or, as the case may be, it to represent the best regulatory practice.

• (5B) In subsection (1A)—

• “the designated regulatory objectives” means the objectives set out in Article 40(c) to (h) of the Gas Directive but read with the following modifications— in Article 40(c), for the words from “between” to the end substitute “ , including enabling the development of appropriate cross-border transmission capacities to meet demand; ”,in Article 40(d), omit “, in line with general energy policy objectives,”,in Article 40(f), omit “and foster market integration”, andin Article 40(g), for “their national market” substitute “the energy market in Great Britain”;

• ...

• ...

• ...

• (6) In subsections (1C), (3) and (4) references to consumers include both existing and future consumers.

• (7) In this section and sections 4AB and 4A, references to functions of the Secretary of State or the Authority under this Part include a reference to functions under the Utilities Act 2000 which relate to gas conveyed through pipes.

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

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

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

4AB

• (1) The Secretary of State shall from time to time issue guidance about the making by the Authority of a contribution towards the attainment of any social or environmental policies set out or referred to in the guidance.

• (2) The Authority shall, in carrying out its functions under this Part, have regard to any guidance issued under this section.

• (3) Before issuing guidance under this section the Secretary of State shall consult—

• (a) the Authority;

• (b) Citizens Advice;

• (ba) Consumer Scotland;

• (c) licence holders; and

• (d) such other persons as the Secretary of State considers it appropriate to consult in relation to the guidance.

• (4) A draft of any guidance proposed to be issued under this section shall be laid before each House of Parliament.

• (5) Guidance shall not be issued under this section until after the period of forty days beginning with—

• (a) the day on which the draft is laid before each House of Parliament; or

• (b) if the draft is laid before the House of Lords on one day and the House of Commons on another, the later of those two days.

• (6) If, before the end of that period, either House resolves that the guidance should not be issued, the Secretary of State must not issue it.

• (7) In reckoning any period of forty days for the purposes of subsection (5) or (6), no account shall be taken of any time during which—

• (a) Parliament is dissolved or prorogued; or

• (b) both Houses are adjourned for more than four days.

• (8) The Secretary of State shall arrange for any guidance issued under this section to be published in such manner as he considers appropriate.

4A

• (1) The Secretary of State and the Authority shall consult the Health and Safety Executive about all gas safety issues which may be relevant to the carrying out of any of their respective functions under this Part.

• (2) The Secretary of State and the Authority shall, in carrying out their respective functions under this Part, take into account any advice given by the Health and Safety Executive about any gas safety issue (whether or not in response to consultation under subsection (1)).

• (3) For the purposes of this section a gas safety issue is anything concerning the conveyance of gas through pipes, or the use of gas conveyed through pipes, which may affect the health and safety of—

• (a) members of the public; or

• (b) persons employed in connection with the conveyance of gas through pipes or the supply of gas conveyed through pipes.

4B

• (1) Section 4AA does not apply in relation to the issuing by the Secretary of State of guidance under section 4AB.

• (2) Sections 4AA to 4A do not apply in relation to anything done by the Authority—

• (a) in the exercise of functions relating to the determination of disputes; or

• (b) in the exercise of functions under section 36A(3).

• (3) The Authority may nevertheless, when exercising any function under section 36A(3), have regard to any matter in respect of which a duty is imposed by sections 4AA to 4A if it is a matter to which the CMA could have regard when exercising that function.

• (4) The duties imposed by sections 4AA to 4A do not affect the obligation of the Authority or the Secretary of State to perform or comply with any other duty or requirement (whether arising under this Act or another enactment, by virtue of any assimilated obligation or otherwise).

6A

• (1) The Secretary of State may, ... by order grant exemption from paragraph (a), (aa), (b) , (c) , (d) or (e) of section 5(1) above—

• (a) either to a person or to persons of a class;

• (b) either generally or to such extent as may be specified in the order; and

• (c) either unconditionally or subject to such conditions as may be so specified.

• (1A) Before making an order under subsection (1) the Secretary of State shall give notice—

• (a) stating that he proposes to make such an order and setting out the terms of the proposed order;

• (b) stating the reasons why he proposes to make the order in the terms proposed; and

• (c) specifying the time (not being less than 28 days from the date of publication of the notice) within which representations with respect to the proposals may be made,

and shall consider any representations which are duly made in respect of the proposals and not withdrawn.

• (1B) The notice required by subsection (1A) shall be given—

• (a) by serving a copy of it on the Authority , Citizens Advice and Consumer Scotland; and

• (b) by publishing it in such manner as the Secretary of State considers appropriate for bringing it to the attention of those likely to be affected by the proposed order.

• (2) Notice of an exemption granted to a person shall be given—

• (a) by serving a copy of the exemption on him; and

• (b) by publishing the exemption in such manner as the Secretary of State considers appropriate for bringing it to the attention of other persons who may be affected by it.

• (2A) Notice of an exemption granted to persons of a class shall be given by publishing the exemption in such manner as the Secretary of State considers appropriate for bringing it to the attention of—

• (a) persons of that class; and

• (b) other persons who may be affected by it.

• (3) An exemption may be granted—

• (a) indefinitely; or

• (b) for a period specified in, or determined by or under, the exemption.

• (4) Without prejudice to the generality of paragraph (c) of subsection (1) above, conditions included by virtue of that paragraph in an exemption may require any person carrying on any activity in pursuance of the exemption—

• (a) to comply with any direction given by the Secretary of State or the Director as to such matters as are specified in the exemption or are of a description so specified;

• (b) except in so far as the Secretary of State or the Director consents to his doing or not doing them, not to do or to do such things as are specified in the exemption or are of a description so specified; and

• (c) to refer for determination by the Secretary of State or the Director such questions arising under the exemption as are specified in the exemption or are of a description so specified.

• (5) The Secretary of State may by order revoke an order by which an exemption was granted to a person or vary an order by which more than one exemption was so granted so as to terminate any of the exemptions—

• (a) at the person’s request;

• (b) in accordance with any provision of the order by which the exemption was granted; or

• (c) if it appears to the Secretary of State inappropriate that the exemption should continue to have effect.

• (6) The Secretary of State may by order revoke an order by which an exemption was granted to persons of a class or vary an order by which more than one exemption was so granted so as to terminate any of the exemptions—

• (a) in accordance with any provision of the order by which the exemption was granted; or

• (b) if it appears to the Secretary of State inappropriate that the exemption should continue to have effect.

• (7) The Secretary of State may by direction withdraw an exemption granted to persons of a class from any person of that class—

• (a) at the person’s request;

• (b) in accordance with any provision of the order by which the exemption was granted; or

• (c) if it appears to the Secretary of State inappropriate that the exemption should continue to have effect in the case of the person.

• (8) Before—

• (a) making an order under subsection (5)(b) or (c) or (6); or

• (b) giving a direction under subsection (7)(b) or (c),

the Secretary of State shall consult the Authority and give notice of his proposal to do so (with reasons) and of a period within which representations may be made to him.

• (9) The notice under subsection (8) shall be given—

• (a) where the Secretary of State is proposing to make an order under subsection (5)(b) or (c), by serving a copy of it on the person to whom the exemption was granted;

• (b) where he is proposing to make an order under subsection (6), by publishing it in such manner as the Secretary of State considers appropriate for bringing it to the attention of persons of the class of persons to whom the exemption was granted; and

• (c) where he is proposing to give a direction under subsection (7)(b) or (c), by serving a copy of it on the person from whom he proposes to withdraw the exemption.

7A

• (1) Subject to subsection (3) below, the Director may grant a licence authorising any person to do either or both of the following, namely—

• (a) to supply, to any premises specified in the licence, gas which has been conveyed through pipes to those premises; and

• (b) to supply, to any premises at a rate which, at the time when he undertakes to give the supply, he reasonably expects to exceed 2,500 therms a year, gas which has been conveyed through pipes to those premises.

• (2) Subject to subsection (3) below, the Director may grant a licence authorising any person to arrange with any gas transporter for gas to be introduced into, conveyed by means of or taken out of a pipe-line system operated by that transporter, either generally or for purposes connected with the supply of gas to any premises specified in the licence.

• (3) A licence shall not be granted under this section to a person who is the holder of a licence under section 7 or 7ZA above.

• (4) The Director may, with the consent of the licence holder, direct that any licence under this section shall have effect—

• (a) as if any premises specified in the direction were specified in the licence; or

• (b) in the case of a licence under subsection (1)(b) above, as if it were also a licence under subsection (1)(a) above and any premises specified in the direction were specified in the licence,

and references in this Part to, or to the grant of, an extension under this section, or an extension of such a licence, shall be construed as references to, or to the giving of, such a direction.

• (5) Subsection (4) above shall not apply in relation to a licence under subsection (1) above which authorises only the supply to premises of gas which has been conveyed to the premises otherwise than by a gas transporter.

• (6) The Director may, with the consent of the licence holder, direct that any licence under this section shall have effect as if any premises specified in the direction were not specified in the licence; and references in this Part to, or to the grant of, a restriction under this section, or a restriction of such a licence, shall be construed as references to, or to the giving of, such a direction.

• (7) In this section references to premises specified in a licence or direction include references to premises of a description, or situated in an area, so specified.

• (8) The Director shall not, in any licence under subsection (1) above, or in any extension or restriction of such a licence, specify any premises by description or area if he is of the opinion that the description or area has been so framed as—

• (a) in the case of a licence or extension, artificially to exclude from the licence or extension; or

• (b) in the case of a restriction, artificially to include in the restriction,

premises likely to be owned or occupied by persons who are chronically sick, disabled or of pensionable age, or who are likely to default in the payment of charges.

• (9) If the holder of a licence under subsection (1) above applies to the Director for a restriction of the licence, or for the revocation of the licence in accordance with any term contained in it, the Director shall, subject to subsection (8) above, accede to the application if he is satisfied that such arrangements have been made as—

• (a) will secure continuity of supply for all relevant consumers; and

• (b) in the case of each such consumer who is supplied with gas in pursuance of a contract, will secure such continuity on the same terms as nearly as may be as the terms of the contract.

• (10) A person is a relevant consumer for the purposes of subsection (9) above if—

• (a) immediately before the restriction or revocation takes effect, he is being supplied with gas by the holder of the licence; and

• (b) in the case of a restriction, his premises are excluded from the licence by the restriction;

and in that subsection “contract” does not include any contract which, by virtue of paragraph 8 of Schedule 2B to this Act, is deemed to have been made.

• (11) In this Part “gas supplier” and “gas shipper” mean respectively the holder of a licence under subsection (1) above, and the holder of a licence under subsection (2) above, except (in either case) where the holder is acting otherwise than for purposes connected with the carrying on of activities authorised by the licence.

• (12) Any reference in this Part (however expressed) to activities authorised by a licence under subsection (1) above shall be construed without regard to any exception contained in Schedule 2A to this Act.

7B

• (1) An application for a licence or an extension or restriction of a licence shall be made in such form and manner, and shall contain, or be accompanied by, such information and documents and such fee (if any), as may be prescribed.

• (2) Within the prescribed period after the making of an application for a licence or an extension or restriction of a licence, the applicant shall—

• (a) publish a notice of the application in the prescribed manner; and

• (b) in the case of an application for a licence or extension under section 7 above, give notice of the application to any gas transporters whose authorised area includes the whole or any part of the area to which the application relates.

• (2A) Where the Authority proposes to refuse the application, it shall give to the applicant a notice—

• (a) stating that it proposes to refuse the application;

• (b) stating the reasons why it proposes to refuse the application; and

• (c) specifying the time within which representations with respect to the proposed refusal may be made,

and shall consider any representations which are duly made and not withdrawn.

• (2B) At any time when regulations made under section 41HC are in force, subsections (1) to (2A) do not apply to an application for a smart meter communication licence.

• (2C) Subsections (1) to (2A) do not apply to an application for a code manager licence.

• (3) A licence or an extension or restriction of a licence shall be in writing and, unless revoked or suspended in accordance with any term contained in it and subject to subsection (3A), a licence shall continue in force for such period as may be specified in or determined by or under the licence.

• (3A) If a person who holds a gas system planner licence ceases at any time to hold a licence under section 6(1)(da) of the Electricity Act 1989, the person is to be treated as ceasing to hold the gas system planner licence at the same time.

• (4) A licence may include—

• (a) such conditions (whether or not relating to the activities authorised by the licence) as appear to the grantor to be requisite or expedient having regard to the duties imposed by sections 4AA, 4AB and 4A;

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

• (c) conditions requiring the rendering to the Director of a payment on the grant of the licence or payments during the currency of the licence or both of such amount or amounts as may be determined by or under the licence; . . .

• (d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (4A) Without prejudice to the generality of paragraph (a) of subsection (4), conditions included in a licence under section 7 by virtue of that paragraph—

• (a) may require the licence holder to enter into agreements with other persons for the use of any pipe-line system of his (wherever situated and whether or not used for the purpose of carrying on the activities authorised by the licence) for such purposes as may be specified in the conditions;

• (b) may include provision for determining the terms on which such agreements are to be entered into.

• (5) Without prejudice to the generality of paragraph (a) of subsection (4) above—

• (a) conditions included by virtue of that paragraph in a licence may—

• (i) require the holder to comply with any direction given by the Director or the Secretary of State as to such matters as are specified in the licence or are of a description so specified;

• (ii) require the holder, except in so far as the Director or the Secretary of State consents to his doing or not doing them, not to do or to do such things as are specified in the licence or are of a description so specified; and

• (iii) provide for the determination by the Director, the Secretary of State or the Health and Safety Executive of such questions arising under the licence, or under any document referred to in the licence, as are specified in the licence or are of a description so specified; and

• (b) conditions included by virtue of that paragraph in a licence under section 7 or 7AA above may require the holder, in such circumstances as are specified in the licence—

• (i) so to increase the charges payable to the holder in connection with the conveyance of gas, or in connection with the exercise of any other functions under or by virtue of the licence, as to raise such amounts as may be determined by or under the conditions; and

• (ii) to pay the amounts so raised to such holders of licences under this Part or under section 6 of the Electricity Act 1989 as may be so determined.

• (5ZA) Without prejudice to the generality of paragraph (a) of subsection (4), conditions for or in connection with the purpose set out in subsection (5ZB) may be included in a licence under section 7AA by virtue of that paragraph.

• (5ZB) The purpose is to facilitate or ensure the effective performance (whether in relation to Northern Ireland or any other part of the United Kingdom), at relevant times, of functions of a hydrogen production allocation body under Chapter 1 of Part 2 of the Energy Act 2023.

• (5ZC) In subsection (5ZB) “relevant times” means times when the hydrogen production allocation body holds a licence under section 7AA.

• (5A) Without prejudice to the generality of paragraph (a) of subsection (4), conditions which are described in subsection (5B) may be included in a smart meter communication licence or in a code manager licence by virtue of that paragraph, in respect of circumstances where a person holds such a licence (the “licence holder”), and another person has applied or is considering whether to apply for a a licence of the same type (“the applicant”).

• (5B) The conditions in this subsection are conditions which require the licence holder to comply with a direction given by the relevant authority requiring the licence holder to provide to the applicant—

• (a) information in relation to the activities authorised by the licence; or

• (b) such other assistance as may be reasonably required by the applicant, including access to any facilities or equipment being used in connection with the activities authorised by the licence, in order that the applicant can—

• (i) determine whether to apply for a licence; or

• (ii) take part in a competition for a licence or (in the case of an application for a code manager licence) apply for a licence otherwise than as part of a competition.

• (5C) Subject to subsection (5E) and without prejudice to the generality of paragraph (a) of subsection (4), conditions which are described in subsection (5D) may be included in a smart meter communication licence or in a code manager licence by virtue of that paragraph, in respect of circumstances where such a licence held by a person (the “first licensee”) will cease to have effect, and another such licence is to be granted or has been granted to a different person (the “second licensee”).

• (5D) The conditions in this subsection are conditions which require compliance with a direction given by the relevant authority requiring—

• (a) the transfer of property, rights or liabilities from the first licensee to the second licensee;

• (b) the creation of rights in relation to property, rights or liabilities in favour of the second licensee;

• (c) the creation of other rights and liabilities as between the first and second licensee;

• (d) the first or second licensee to enter into a written agreement with each other, or the first licensee to execute an instrument of another kind in favour of the second licensee;

• (e) the first or second licensee to pay compensation to the other, or to any third party who is affected by any of the matters referred to in paragraphs (a) to (d).

• (5E) Conditions included in a licence by virtue of subsection (5C) must provide that the licensee does not have a duty to comply with a direction of the kind referred to in subsection (5D) unless, in relation to that direction, the following conditions have been satisfied prior to it being given—

• (a) the relevant authority has given written notice to the first licensee, the second licensee and any other person who would potentially be affected by the direction, including a copy of the proposed direction and inviting them to submit written representations, giving a minimum period of 21 days in which those representations can be made; and

• (b) after the end of the period set out in the notice under paragraph (a), the relevant authority has considered those representations and determined that—

• (i) it is appropriate in all the circumstances that the proposed direction is given; and

• (ii) the arrangements of a type referred to in paragraphs (a) to (d) of subsection (5D) in the direction are necessary or expedient for the operational purposes of the second licensee, or are agreed by the first licensee and the second licensee to be necessary or expedient for those purposes.

• (5F) For the purposes of subsection (5E), the operational purposes of the second licensee are the purposes of performing any functions which the second licensee has, or will have—

• (a) under or by virtue of the smart meter communication licence which has been, or is to be, granted; or

• (b) under or by virtue of any enactment, in the second licensee’s capacity as holder of that licence.

• (5FA) In subsections (5B) to (5E), “the relevant authority” means—

• (a) in relation to a smart meter communication licence, the Secretary of State or the Authority;

• (b) in relation to a code manager licence, the Authority.

• (6) Conditions included in a licence may—

• (a) impose requirements by reference to designation, acceptance or approval by the Director, the Secretary of State or the Health and Safety Executive; and

• (b) provide for references in the conditions to any document . . . to operate as references to that document as revised or re-issued from time to time.

• (7) Conditions included in a licence may contain provision for the conditions to—

• (a) have effect or cease to have effect at such times and in such circumstances as may be determined by or under the conditions; or

• (b) be modified in such manner as may be specified in the conditions at such times and in such circumstances as may be so determined.

• (8) Any provision included in a licence by virtue of subsection (7) above shall have effect in addition to the provision made by this Part with respect to the modification of the conditions of a licence.

• (9) As soon as practicable after granting a licence or an extension or restriction of a licence, the Director shall send a copy of the licence or extension or restriction—

• (a) to the Health and Safety Executive; . . .

• (b) in the case of a licence , extension or restriction under section 7 above, to any public gas transporter whose authorised area includes the whole or any part of the area specified in the licence , extension or restriction ; and

• (c) to any other person who holds a licence and whose interests may, in the opinion of the Authority, be affected by the grant.

• (10) Any sums received by the Director under or by virtue of this section shall be paid into the Consolidated Fund.

• (11) In this section “prescribed” means prescribed in regulations made by the Authority.

8AA

• (1) A licence—

• (a) shall be capable of being transferred by the licence holder, with the consent of the Authority, in accordance with this section and subject to any term of the licence relating to its transfer;

• (b) may include conditions which must be complied with before the licence can be transferred.

• (2) A transfer may relate to the whole or any part of the licence.

• (3) The reference in subsection (2) to part of a licence is a reference to a part of the activities authorised by the licence (whether described by reference to activities being carried on by the licence holder or to activities which he is authorised to carry on).

• (4) Such consent may be given subject to compliance with such modification or other conditions as the Authority considers necessary or expedient.

• (5) In the case of a partial transfer, conditions imposed under subsection (4) may make as respects so much of the licence as is proposed to be retained by the transferor provision different from that made as respects so much of the licence as is proposed to be transferred.

• (6) In deciding whether to give its consent to a proposed transfer, the Authority shall apply the same criteria as it would apply if the Authority were deciding whether—

• (a) in the case of a general transfer, to grant a corresponding licence to the transferee; or

• (b) in the case of a partial transfer—

• (i) to grant to the transferee a licence corresponding to so much of the licence as is proposed to be transferred; and

• (ii) to grant to the transferor a licence corresponding to so much of the licence as is proposed to be retained.

• (7) The Authority shall—

• (a) give the Health and Safety Executive not less than 28 days’ notice of any proposal to consent to any proposed transfer; and

• (b) give that Executive and the Secretary of State not less than 28 days’ notice of any proposal to impose a modification condition.

• (8) If, before the expiry of the time specified in a notice given to the Secretary of State under subsection (7)(b), the Secretary of State directs the Authority not to impose the condition, the Authority shall comply with the direction.

• (9) Before giving consent to the transfer of a licence, the Authority shall give notice—

• (a) stating that it proposes to grant consent to the transfer;

• (b) stating the reasons why it proposes to give consent; and

• (c) specifying the time from the date of publication of the notice (not being less than two months) within which representations or objections with respect to the transfer may be made,

and shall consider any representations or objections that are duly made and not withdrawn.

• (10) A notice under subsection (9) shall be given by publishing the notice in such manner as the Authority considers appropriate for bringing it to the attention of persons likely to be affected by the transfer.

• (10A) Subject to subsection (10C), the Authority shall, following consideration of any representations or objections under subsection (9), give the Secretary of State not less than 28 days’ notice of any proposal to give consent to the transfer of the whole or any part of a smart meter communication licence.

• (10B) If, before the expiry of the time specified in a notice under subsection (10A), the Secretary of State directs the Authority not to give consent, the Authority shall comply with that direction.

• (10C) Where the Secretary of State does not give a direction under subsection (10B), the Authority may give consent to the transfer of the licence after—

• (a) the expiry of the time specified in the notice under subsection (10A); or

• (b) if earlier than the time in paragraph (a), the time at which the Secretary of State informs the Authority that no direction will be given under subsection (10B) in relation to the notice.

• (10D) Subsections (10A) to (10C) do not apply after 1 November 2028.

• (11) A purported transfer of a licence shall be void—

• (a) if the licence is not capable of transfer or the Authority has not given its consent;

• (b) if the purported transfer is in breach of a condition of the licence; or

• (c) if there has, before the purported transfer, been a contravention of a condition subject to compliance with which the Authority’s consent is given.

• (11ZA) A gas system planner licence may not be transferred to a person unless a licence granted under section 6(1)(da) of the Electricity Act 1989 is also transferred to the same person at the same time.

• (11A) A smart meter communication licence may not be transferred to a person unless a licence granted under section 6(1)(f) of the Electricity Act 1989 is also transferred to the same person at the same time.

• (11B) Where the holder of a code manager licence is also the holder of a licence under section 6(1)(g) of the Electricity Act 1989, the code manager licence may not be transferred to a person unless the licence under section 6(1)(g) of that Act is transferred to the same person at the same time.

• (12) In this section—

• “transfer” includes any form of transfer or assignment or, in Scotland, assignation;

• “modification condition” means a condition requiring or otherwise providing for the making of modifications to the conditions of a licence.

8A

• (1) The Secretary of State may by order amend section 10(8) or (12) below, paragraph 4 of Schedule 2A to this Act or paragraph 4, 8 or 16 of Schedule 2B to this Act by substituting—

• (a) where the limit is for the time being expressed by reference to a number of therms—

• (i) such lower number of therms as he considers appropriate; or

• (ii) such lower limit, expressed by reference to a number of kilowatt hours, as he considers appropriate; or

• (b) where the limit is for the time being expressed by reference to a number of kilowatt hours, such lower number of kilowatt hours as he considers appropriate.

• (2) An order under subsection (1) above may be made so as to provide for the number specified in one provision to differ from that for the time being specified in any of the other provisions.

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

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

The gas code

8B

The provisions of Schedule 2B to this Act (which relate to rights and obligations of licence holders and consumers and related matters) shall have effect.

10A

• (1) Any pipe-line of a gas transporter—

• (a) for the construction of which the execution of works has begun before the commencement of section 76 of the Utilities Act 2000 (abolition of geographical exclusivity of authorised areas of gas transporters); and

• (b) which is situated in an area which, immediately before the commencement of that section, is the authorised area of a public gas transporter (the “other transporter”),

shall not be used for the purpose of giving a supply of gas to any premises in that area at a rate less than 2,196,000 kilowatt hours per year unless the other transporter consents in writing to such use.

• (2) If the other transporter refuses or fails to give consent under subsection (1) consent may instead be given in writing by the Authority where it considers it appropriate to do so.

• (3) Consent given under this section may not be withdrawn.

• (4) In this section “pipe-line” has the same meaning as in the Pipe-lines Act 1962.

Gas conveyed by Public Gas Transporters

14A

16

• (1) The Authority may, with the consent of the Secretary of State, prescribe—

• (a) standards of pressure and purity to be complied with by gas transporters in conveying gas to premises or to pipe-line systems operated by other gas transporters; and

• (b) other standards with respect to the properties, condition and composition of gas so conveyed.

• (2) Before making any regulations under this section the Authority shall consult such persons and organisations as it considers appropriate and such gas transporters as appear to it to be affected by the regulations.

• (3) The Authority shall appoint competent and impartial persons for the purpose of—

• (a) carrying out tests of gas, apparatus or equipment in accordance with regulations under this section; and

• (b) assisting the Authority in exercising functions under this section and regulations made under it.

• (4) Regulations under this section may make provision—

• (a) for requiring tests of gas conveyed by gas transporters to be carried out by persons appointed under subsection (3) or by gas transporters for the purpose of ascertaining whether the gas conforms with the standards prescribed by the regulations;

• (b) for requiring such tests to be carried out on the basis of samples taken by persons appointed under subsection (3) or by gas transporters; and

• (c) for requiring samples of gas taken under paragraph (b) to be provided by gas transporters for the purpose of carrying out such tests.

• (5) Regulations under this section may make provision—

• (a) for requiring such premises, apparatus and equipment as the Authority may direct to be provided and maintained by gas transporters for the purpose of carrying out tests required under subsection (4)(a);

• (b) for requiring tests of apparatus and equipment so provided to be carried out by persons appointed under subsection (3); and

• (c) for requiring gas transporters to carry out tests of apparatus and equipment so provided and maintained by them.

• (6) Regulations under this section may make provision—

• (a) as to the places or premises and the times at which, and the manner in which—

• (i) tests under this section are to be carried out;

• (ii) samples of gas are to be taken and provided under this section; and

• (iii) results of tests under this section are to be notified or made available;

• (b) for the Authority to require by direction any matter which may be required by regulations by virtue of paragraph (a);

• (c) for persons representing the gas transporter concerned to be present during the carrying out of any tests carried out by persons appointed under subsection (3);

• (d) for the results of tests under this section to be made available to other licence holders and to the public;

• (e) for requiring gas transporters to notify the results of such tests carried out by them to the Authority or to any person appointed under subsection (3);

• (f) for conferring powers of entry on property owned or occupied by gas transporters for the purpose of carrying out tests under this section and otherwise for the purposes of the regulations.

• (7) Subject to subsection (8), the Authority may by notice in writing require a gas transporter to give to the Authority, or to any person appointed by it for the purpose, within such time and at such place as may be specified in the notice, such information as the Authority may reasonably require for the purpose of making regulations under this section or of giving directions under such regulations.

• (8) A gas transporter shall not be required under subsection (7) to give any information which he could not be compelled to give in evidence in civil proceedings before the High Court or, in Scotland, the Court of Session.

• (9) Every person who is a gas transporter during any period shall pay to the Authority such proportion as the Authority may determine of such part of its expenses for that period as the Authority may determine to be attributable to its functions in connection with the testing of gas for the purposes of this section.

• (10) It shall be the duty of every gas transporter to conduct his business in such a way as can reasonably be expected to secure compliance with the standards set under subsection (1).

15B

16

18A

• (1) The Secretary of State may by regulations make provision—

• (a) for empowering any officer authorised by a gas transporter, if the transporter has reasonable cause to suspect—

• (i) that gas conveyed by the transporter is escaping, or may escape, in any premises; or

• (ii) that gas so conveyed which has escaped has entered, or may enter, any premises,

to enter the premises, to carry out any work necessary to prevent the escape of gas and to take any other steps necessary to avert danger to life or property; and

• (b) for empowering any officer so authorised, if the transporter has reasonable cause to suspect—

• (i) that gas conveyed through pipes by some other person is escaping, or may escape, in any premises; or

• (ii) that gas so conveyed which has escaped has entered, or may enter, any premises,

to enter the premises and take any steps necessary to avert danger to life or property.

• (2) Subsections (5) to (7) and (11) of section 18 above shall apply for the purposes of this section as if—

• (a) any reference to subsection (2) of that section were a reference to subsection (1) above;

• (b) any reference to the relevant authority were a reference to a gas transporter;

• (c) any reference to subsection (5) of that section were a reference to that subsection as applied by this subsection; and

• (d) the reference in subsection (11) of that section to regulations under that section were a reference to regulations under this section.

• (3) The Rights of Entry (Gas and Electricity Boards) Act 1954 (entry under a justice’s warrant) shall apply in relation to any powers of entry conferred by regulations made under subsection (1) above.

• (4) Any reference in this section to any officer authorised by a gas transporter includes a reference to any officer authorised by another such transporter with whom the transporter has made arrangements for officers authorised by the other transporter to discharge any functions under this section of officers authorised by the transporter.

19A

• (1) Section 19B applies to a storage facility, except as provided in subsections (1A) and (1B).

• (1A) Section 19B does not apply to a storage facility if it is subject to a minor facility exemption under section 8S.

• (1B) Section 19B does not apply to a storage facility if, or to the extent that, it is exempt under this section.

• (1C) The Authority must maintain on its website a list of the facilities to which section 19B applies.

• (1D) If only part of the capacity of a storage facility is exempt under this section, the list under subsection (1C) must specify the extent to which section 19B applies to the facility.

• (2) A person who is or expects to be an owner of a storage facility may apply in writing to the Director for an exemption under this section with respect to the facility.

• (2A) An application under subsection (2) must relate to—

• (a) a storage facility (or proposed storage facility) which is not yet operational; or

• (b) a modification (or proposed modification) which falls within subsection (2B) and is not yet operational.

• (2B) A modification (or proposed modification) falls within this subsection if it is—

• (a) a modification of a storage facility to provide for a significant increase in the capacity of the facility; or

• (b) a modification of a storage facility to enable the development of new sources of gas supply.

• (2C) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (3) An exemption under this section must be given in writing and on the following terms—

• (a) a term specifying the period of the exemption, or specifying how that period is to be determined;

• (b) a term as to whether the exemption applies to all of the capacity of the facility or part of that capacity only;

• (c) a term that the owner must comply with the capacity allocation mechanism approved in accordance with section 19DB; and

• (d) such other terms regarding non-discriminatory access to the facility or any other matter as the Authority considers appropriate.

• (3A) When determining a term under subsection (3) the Authority must take into account—

• (a) the capacity of the facility or (as the case may be) the increase in capacity of the facility;

• (b) the length of time required to recover the investment in the facility or (as the case may be) the investment in the modification;

• (c) the implications of the exemption for the operation of the gas market in Great Britain.

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

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

• (6) Where the Authority receives an application under subsection (2) in relation to a facility or modification, it must give an exemption if it is satisfied that —

• (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (b) the requirements of subsection (8) are met.

• (6A) An exemption given in accordance with subsection (6) may apply to all of the capacity of the facility concerned or to part of that capacity only, regardless of the extent of the exemption applied for; but this is subject to subsection (7).

• (7) In respect of a facility which is or is to be modified to provide for a significant increase in its capacity, an exemption by virtue of subsection (6)(b) may only be given in relation to that increase in its capacity or part of that increase in its capacity.

• (7A) When deciding whether the requirements of subsection (8)(a), (d) and (e) are met, the Authority must take into account the way in which capacity is to be allocated under the capacity allocation mechanism approved in accordance with section 19DB.

• (8) The requirements of this subsection are that—

• (a) the facility or (as the case may be) the modification will promote security of supply;

• (b) the level of risk is such that the investment to construct the facility or (as the case may be) to modify the facility ... would not be or would not have been made without the exemption;

• (c) the facility is or is to be owned by a person other than the gas transporter who operates or will operate the pipeline system connected or to be connected to the facility;

• (d) charges will be levied on users of the facility or (as the case may) the increase in its capacity; and

• (e) the exemption will not be detrimental to competition, the operation of an economically efficient gas market or the efficient functioning of the pipeline system connected or to be connected to the facility.

• (f) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (9) Subject to subsections (9A) and (10), an exemption may not be given by virtue of subsection (6)(b) more than once in respect of the same facility.

• (9A) Subsection (9) does not prevent a further exemption being given by virtue of subsection (6)(b) in respect of a facility if the previous exemption given by virtue of that provision in respect of the facility has been revoked under section 19AA(5).

• (10) Subsection (9) does not prevent a further exemption being given by virtue of subsection (6)(b) in respect of a facility if—

• the facility is or is to be modified to provide for a significant increase in its capacity or to enable the development of new sources of gas supply;

• the exemption has effect only in relation to that modification; and