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Gas Act 1995

Type Public General Act
Publication 1995-11-08
Last updated 2019-04-01
State In force
Department Statute Law Database
Source legislation.gov.uk
articles Not indexed
Reform history JSON API

Introductory

General duties under 1986 Act

1

Duties under 1986 Act with respect to safety

2

Licensing of activities relating to gas

Prohibition on unlicensed activities

3
  • (1) For section 5 of the 1986 Act there shall be substituted the following section—

(5) (1) Subject to section 6A below and Schedule 2A to this Act, a person who— (a) conveys gas through pipes to any premises, or to a pipe-line system operated by a public gas transporter; (b) supplies to any premises gas which has been conveyed to those premises through pipes; or (c) arranges with a public gas transporter for gas to be introduced into, conveyed by means of or taken out of a pipe-line system operated by that transporter, shall be guilty of an offence unless he is authorised to do so by a licence. (2) The exceptions to subsection (1) above which are contained in Schedule 2A to this Act shall have effect. (3) A person guilty of an offence under this section shall be liable— (a) on summary conviction to a fine not exceeding the statutory maximum; (b) on conviction on indictment, to a fine. (4) No proceedings shall be instituted in England and Wales in respect of an offence under this section except by or on behalf of the Secretary of State or the Director. (5) Any reference in this Part to the conveyance by any person of gas through pipes to any premises is a reference to the conveyance by him of gas through pipes to those premises with a view to the gas being supplied to those premises by any person, or being used in those premises by the holder of a licence under section 7A(2) below.

  • (2) After Schedule 2 to that Act there shall be inserted, as Schedule 2A, the provisions of Schedule 1 to this Act (exceptions to prohibition on unlicensed activities).
  • (3) Section 6 of that Act (which is superseded by this section) shall cease to have effect.

Exemptions from prohibition

4

For section 6A of the 1986 Act there shall be substituted the following section—

(6A) (1) The Secretary of State may, after consultation with the Director, by order grant exemption from paragraph (a), (b) or (c) 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. (2) An exemption granted to persons of a class, and the revocation of such an exemption, shall be published in such manner as the Secretary of State considers appropriate for bringing it to the attention of persons of that class. (3) An exemption, unless previously revoked in accordance with any term contained in the exemption, shall continue in force for such period as may be 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) If any condition of an exemption granted to persons of a class is not complied with by any person of that class, the Secretary of State may give to that person a direction declaring that the exemption is revoked, so far as relating to that person, to such extent and as from such date as may be specified in the direction.

Licensing of public gas transporters

5

For section 7 of the 1986 Act there shall be substituted the following section—

(7) (1) In this Part “public gas transporter” means the holder of a licence under this section except where the holder is acting otherwise than for purposes connected with— (a) the carrying on of activities authorised by the licence; (b) the conveyance of gas through pipes which— (i) are situated in an authorised area of his; or (ii) are situated in an area which was an authorised area of his, or an authorised area of a previous holder of the licence, and were so situated at a time when it was such an area; or (c) the conveyance through pipes of gas which is in the course of being conveyed to or from a country or territory outside Great Britain. (2) 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 convey gas through pipes to any premises in an authorised area of his, that is to say, so much of any area specified in the licence or an extension of the licence as is not specified in a subsequent licence or extension granted under this section to another person; and (b) to convey gas through pipes either to any pipe-line system operated by another public gas transporter, or to any pipe-line system so operated which is specified in the licence or an extension of the licence. (3) A licence shall not be granted under this section to a person who is the holder of a licence under section 7A below. (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 area or pipe-line system specified in the direction were specified in the licence; (b) in the case of a licence under subsection (2)(a) above, as if it were also a licence under subsection (2)(b) above and any pipe-line system specified in the direction were specified in the licence; or (c) in the case of a licence under subsection (2)(b) above, as if it were also a licence under subsection (2)(a) above and any area 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) Before granting a licence or extension under this section, the Director shall give notice— (a) stating that he proposes to grant the licence or extension; (b) stating the reasons why he proposes to grant the licence or extension; and (c) specifying the time from the date of publication of the notice (not being less than two months or, in the case of an extension, such shorter time as may be prescribed) within which represent- ations or objections with respect to the proposed licence or extension may be made, and shall consider any representations or objections which are duly made and not withdrawn. (6) A notice under subsection (5) above shall be given— (a) by publishing the notice in such manner as the Director considers appropriate for bringing it to the attention of persons likely to be affected by the grant of the licence or extension; and (b) by sending a copy of the notice to the Secretary of State, to the Health and Safety Executive and to any public gas transporter whose area includes the whole or any part of the area proposed to be specified in the licence or extension. (7) A licence or extension under this section shall not specify any area which is specified in an earlier licence or extension granted under this section to another public gas transporter unless the Director considers that the applicant intends to carry on the activities authorised by the licence in a substantial part of that area. (8) A licence or extension under this section shall not specify any area which is situated within 23 metres from a main of another public gas transporter unless— (a) the other public gas transporter has consented in writing to the area being so specified; or (b) no premises connected to the main are situated in the area and the Director considers— (i) that the main is not, and is not intended to be, a relevant main; (ii) that the other public gas transporter is not performing his duty under section 9(1) or 10(2) or (3) below in relation to any premises situated in the area; or (iii) that the configuration of the main and of the surrounding area is such that it would be appropriate to specify the area in the licence or extension. (9) As soon as practicable after the granting of a licence under this section, the public gas transporter shall publish, in such manner as the Director considers appropriate for bringing it to the attention of persons who are likely to do business with the transporter, a notice— (a) stating that the licence has been granted; and (b) explaining that, as a result, it might be necessary for those persons to be licensed under section 7A below. (10) In this section— (a) “relevant main” has the same meaning as in section 10 below; (b) references to an area specified in a licence or direction include references to an area included in an area so specified; and (c) references to a pipe-line system specified in a licence or direction include references to a pipe-line system of a description, or situated in an area, so specified. (11) Any reference in this Part (however expressed) to activities authorised by a licence under this section shall be construed without regard to any exception contained in Schedule 2A to this Act.

Licensing of gas suppliers and gas shippers

6
  • (1) After section 7 of the 1986 Act there shall be inserted the following section—

(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 public 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 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 public 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.

  • (2) Subject to subsections (3) to (6) below, no domestic supply licence shall authorise the supply of gas to any premises before the relevant date, that is to say, 1st January 1999 or, if the Secretary of State by order so provides, such earlier date (not earlier than 1st January 1998) as may be determined by or under the order.
  • (3) Subsection (2) above shall not apply in relation to a domestic supply licence in so far as it relates to—
  • (a) any premises to which subsection (4) below applies; or
  • (b) any premises to which that subsection has ceased to apply at any time and which are situated in an area which has not, at that or any later time, ceased to be an authorised area of a particular public gas transporter.
  • (4) This subsection applies to any premises at any time if, at that time, the public gas transporter in whose authorised area the premises are situated is an associate of the holder of the domestic supply licence in question.
  • (5) Subsection (2) above shall not apply in relation to a domestic supply licence in so far as it relates to any premises to which gas is conveyed otherwise than by a public gas transporter.
  • (6) In so far as a domestic supply licence relates to premises which are situated in any area specified in an order made by the Secretary of State, subsection (2) above shall apply in relation to the licence as if for the relevant date there were substituted such earlier date as may be determined, in relation to that area, by or under the order.
  • (7) Any reference in this section to a domestic supply licence includes a reference to an extension of such a licence (within the meaning of Part I of the 1986 Act).
  • (8) In this section—
  • “domestic supply licence” means a licence granted under subsection (1)(a) of section 7A of the 1986 Act, a licence having effect as such a licence by virtue of a direction given under subsection (4)(b) of that section, or a licence treated as so granted by virtue of a scheme made under paragraph 4 or 16 of Schedule 5 to this Act;
  • “public gas transporter”, and “authorised area” in relation to such a transporter, have the same meanings as in Part I of that Act.
  • (9) For the purposes of this section a public gas transporter is an associate of the holder of a domestic supply licence if—
  • (a) both of them are companies registered under the Companies Act 1985 and are limited by shares; and
  • (b) either one company is wholly owned by the other or both companies are wholly owned by the same person.
  • (10) An order under this section may—
  • (a) provide for anything falling to be determined under the order to be determined by the Authority; and
  • (b) make such supplementary or incidental provision as the Secretary of State considers necessary or expedient.
  • (11) An order under this section shall be made by statutory instrument which shall be subject to annulment in pursuance of a resolution of either House of Parliament.

Licences: general

7

After section 7A of the 1986 Act there shall be inserted the following section—

(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 public gas transporter whose authorised area includes the whole or any part of the area to which the application relates. (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, a licence shall continue in force for such period as may be specified in or determined by or under the licence. (4) A licence may include— (a) such conditions (whether or not relating to the activities authorised by the licence) as appear to the Director to be requisite or expedient having regard to the duties imposed by section 4 or 4A above; (b) such conditions requiring arrangements to be made with respect to the provision of special services for meeting the needs of consumers of gas conveyed through pipes who are chronically sick, disabled or of pensionable age as appear to the Director to be requisite or expedient having regard to those duties; (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; and (d) conditions requiring the holder to furnish the Council in such manner and at such times with such information— (i) as appears to the Director to be requisite or expedient for the purpose of facilitating the exercise by the Council of the functions assigned to it by this Part; or (ii) as may be reasonably required by the Council for that purpose. (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 specified or described 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 above may require the holder, in such circumstances as are specified in the licence— (i) so to increase his charges for the conveyance of gas 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 section 7A above as may be so determined. (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 specified or described in the licence 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; and (b) in the case of a licence or extension under section 7 above, to any public gas transporter whose authorised area previously included the whole or any part of the area specified in the licence or extension. (10) Any sums received by the Director under or by virtue of this section shall be paid into the Consolidated Fund.

Standard conditions of licences

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  • (1) For section 8 of the 1986 Act there shall be substituted the following section—

(8) (1) Subject to subsections (2) and (3) and sections 23(2), 26(1A) and 27(2) below, each condition which by virtue of section 8(2) of the Gas Act 1995 is a standard condition for the purposes of— (a) licences under section 7 above; (b) licences under subsection (1) of section 7A above; or (c) licences under subsection (2) of that section, shall be incorporated (that is to say, incorporated by reference) in each licence under that section or, as the case may be, that subsection. (2) Subsection (1) above shall not apply in relation to a licence under section 7A(1) above which authorises only the supply to premises of gas which has been conveyed to the premises otherwise than by a public gas transporter. (3) Subject to the following provisions of this section, the Director may, in granting a licence, modify any of the standard conditions to such extent as he considers requisite to meet the circumstances of the particular case. (4) Before making any modifications under subsection (3) above, the Director shall give notice— (a) stating that he proposes to make the modifications and setting out their effect; (b) stating the reasons why he proposes to make the modifications; and (c) specifying the time (not being less than 28 days from the date of publication of the notice) within which representations or objections with respect to the proposed modifications may be made, and shall consider any representations or objections which are duly made and not withdrawn. (5) A notice under subsection (4) above shall be given— (a) by publishing the notice in such manner as the Director considers appropriate for the purpose of bringing the notice to the attention of persons likely to be affected by the making of the modifications; and (b) by sending a copy of the notice to the Secretary of State, to the Health and Safety Executive and to the Council. (6) If, within the time specified in the notice under subsection (4) above, the Secretary of State directs the Director not to make any modification, the Director shall comply with the direction. (7) The Director shall not make any modifications under subsection (3) above of a condition of a licence under subsection (1) or (2) of section 7A above unless he is of the opinion that the modifications are such that no other holder of such a licence would be unduly disadvantaged in competing with other holders of such licences (including the holder of the licence). (8) The modification under subsection (3) above of a condition of a licence shall not prevent so much of the condition as is not so modified being regarded as a standard condition for the purposes of this Part. (9) In this section “modify” includes fail to incorporate and “modification” shall be construed accordingly.

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

Miscellaneous

The gas code

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  • (1) After section 8A of the 1986 Act there shall be inserted the following section—

(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.

  • (2) After Schedule 2A to that Act there shall be inserted, as Schedule 2B, the provisions of Schedule 2 to this Act (the gas code).
  • (3) Section 15 of and Schedule 5 to that Act (which are superseded by this section) shall cease to have effect.
  • (4) If the Secretary of State is satisfied that any of the provisions of paragraphs 22 and 27(3) of Schedule 2B to the 1986 Act have been or will be superseded by regulations under section 18 or 18A of that Act, he may by order made by statutory instrument provide that those provisions shall cease to have effect as from such date after the coming into force of the regulations as may be specified in the order.

Other amendments of Part I of 1986 Act

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  • (1) Schedule 3 to this Act (which contains other amendments of Part I of the 1986 Act) shall have effect.
  • (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  • (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  • (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  • (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Amendments of Part III of 1986 Act. 1976 c. 34

11
  • (1) In subsection (2) of section 62 of the 1986 Act (exclusion of certain agreements from Restrictive Trade Practices Act 1976), for paragraph (b) there shall be substituted the following paragraph—

(b) is or was an agreement containing provisions relating to, or to activities connected with, the supply otherwise than under a licence granted under section 7A(1) above of gas won under the authority of a petroleum production licence;

.

  • (2) After subsection (2) of that section there shall be inserted the following subsections—

(2A) The said Act of 1976 shall not apply, and shall be deemed never to have applied, to any agreement which— (a) is or was made on or after 2nd March 1995; (b) is or was an agreement containing provisions relating to, or to activities connected with— (i) the introduction of gas into; (ii) the taking out of gas from; or (iii) the use by gas shippers of, a pipe-line system or storage facility operated by a public gas transporter; and (c) is specified, or is of a description specified, in an order made by the Secretary of State and satisfies such conditions as may be so specified. (2B) Before making an order under subsection (2) or (2A) above, the Secretary of State shall consult the Director and the Director General of Fair Trading.

  • (3) In subsection (3) of that section—
  • (a) after the words “subsection (2)” there shall be inserted the words “ or (2A) ”; and
  • (b) after the words “the Secretary of State” there shall be inserted the words “ , the Director or the Director General of Fair Trading ”.
  • (4) In subsection (6) of that section, after the definition of “gas” there shall be inserted the following definitions—

“gas shipper” and “public gas transporter” have the same meanings as in Part I of this Act;

.

  • (5) Subsection (7) of that section shall cease to have effect.
  • (6) Section 63 of the 1986 Act (restrictions on use of certain information) shall cease to have effect.
  • (7) In section 64 of that Act (provisions as to orders), in subsection (2), the words “20(9)” shall cease to have effect.

Acquisition of rights to use gas processing facilities

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  • (1) The owner of a gas processing facility which processes gas for a downstream purpose—
  • (a) shall publish at least once in every year the main commercial conditions relating to the grant to another person of a right to have gas processed by the facility for such a purpose; and
  • (b) shall publish any changes to the published conditions as soon as they become effective.
  • (1ZA) At least two months before publishing those conditions or any changes to them under subsection (1), the owner of the facility must—
  • (a) publish a draft of the proposed conditions or changes; and
  • (b) inform any person who has a right to have gas processed by the facility that the draft has been published.
  • (1ZB) The owner of the facility must take into account any representations received about the proposed conditions or changes before publishing them, or a modified version of them, as final conditions or changes under subsection (1).
  • (1A) In subsection (1) “year” means any year ending with 9th August.
  • (1B) Any person who seeks a right to have gas processed for a downstream purpose by a gas processing facility (“the applicant”) shall, before making an application to the Authority under subsection (1F), apply to the owner of the facility for the right.
  • (1C) An application under subsection (1B) shall be made by giving notice in writing to the owner specifying what is being sought.
  • (1D) The notice shall, in particular, specify—
  • (a) the period during which the gas is to be processed by the facility;
  • (b) the kind of gas to be processed (which must be of, or similar to, the kind which the facility is designed to process); ...
  • (c) the quantities of gas to be processed; and
  • (d) that the gas is to be processed for a downstream purpose
  • (1E) Where a person gives notice under subsection (1C), he and the owner of the gas processing facility shall negotiate in good faith and endeavour to reach agreement on the application.
  • (1F) If the owner and the applicant do not reach any such agreement, the applicant may apply to the Authority for directions under this section which would secure to the applicant the right specified in the notice under subsection (1C).
  • (1G) the Authority shall not entertain such an application unless it is satisfied that the parties have had a reasonable time in which to fulfil their duties under subsection (1E).
  • (2) Where an application is made under subsection (1F), it shall be the duty of the Authority—
  • (a) to decide whether the application is to be adjourned (so as to enable ... further negotiations to take place), considered further or rejected;
  • (b) to give notice of its decision to the applicant; and
  • (c) in the case of a decision that the application is to be considered further, to give to the owner of the facility, to any person who has a right to have gas processed by the facility, and to the Health and Safety Executive, notice that the application is to be so considered and an opportunity of being heard about the matter.
  • (3) Where, after further considering an application under subsection (1F), the Authority is satisfied that the giving of directions under this section would not prejudice the efficient operation of the facility, or the processing by the facility of—
  • (a) the quantities of gas which the owner of the facility or any associate of the owner requires or may reasonably be expected to require to be processed by the facility for the purposes of any business carried on by him; and
  • (b) the quantities of gas which any person who is not such an associate and has a right to have gas processed by the facility is entitled to require to be so processed in the exercise of that right,

the Authority may give such directions to the owner of the facility.

  • (4) Directions under this section may—
  • (a) specify the terms on which the Authority considers the owner of the facility should enter into an agreement with the applicant for all or any of the following purposes—
  • (i) for securing to the applicant the right to have processed by the facility, during the period specified in the directions and in the quantities so specified, gas which is of a kind so specified;
  • (ii) for securing that the exercise of that right is not prevented or impeded;
  • (iii) for regulating the charges which may be made for the processing of gas by virtue of that right;
  • (iv) for securing to the applicant such ancillary or incidental rights as the Authority considers necessary or expedient, which may include the right to have a pipe-line of his connected to the facility by the owner;
  • (b) specify the sums or the method of determining the sums which the Authority considers should be paid by way of consideration for any such right; and
  • (c) require the owner, if the applicant pays or agrees to pay those sums within a period specified in that behalf in the directions, to enter into an agreement with him on the terms so specified.
  • (5) Sections 28 to 30F of the 1986 Act (enforcement of relevant requirements etc) apply in relation to the owner of a gas processing facility as if—
  • (a) references to “a licence holder” were references to the owner of the facility; and
  • (b) references to a “relevant requirement” were references to a requirement imposed on the owner under this section.
  • (5A) For the purposes of this section, gas is processed for “a downstream purpose” if it is processed with a view to its being put into a gas storage facility, an LNG import or export facility, a gas interconnector or a distribution system pipeline.
  • (6) In this section—
  • “authorised transporter” has the same meaning as in Part 1 of the 1986 Act;
  • “distribution system operator” has the meaning given by Article 2(6) of 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;
  • “distribution system pipeline” means a pipeline operated by an authorised transporter who is a distribution system operator;
  • “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 1986 Act;
  • “gas interconnector” has the same meaning as in Part 1 of the 1986 Act;
  • “gas processing facility” means any facility which — carries out gas processing operations;is operated otherwise than by a gas transporter; andis not an LNG import or export facility;
  • “gas processing operation” means any of the following operations, namely— purifying, blending, odorising or compressing gas for the purpose of enabling it to be introduced into a pipe-line system operated by a public gas transporter or to be conveyed to an electricity generating station, a gas storage facility or any place outside Great Britain; removing from gas for that purpose any of its constituent gases, or separating from gas for that purpose any oil or water; ... determining the quantity or quality of gas which is or is to be so introduced, or so conveyed, whether generally or by or on behalf of a particular person,separating, purifying, blending, odorising or compressing gas, for the purpose of—converting it into a form in which a purchaser is willing to accept delivery from a seller, orenabling it to be loaded for conveyance to another place (whether inside or outside Great Britain); andloading gas—at a facility which carries out operations of a kind mentioned in paragraph (d), orpiped from such a facility, andfor the purpose of enabling the gas to be conveyed to another place (whether inside or outside Great Britain); and “process”, in relation to gas, shall be construed accordingly;
  • “gas 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 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 of the 1986 Act, 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;
  • “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 of the 1986 Act, 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—such information as would enable a potential applicant for a right to have gas processed by a gas processing facility to make a reasonable assessment of the cost of, or the method of calculating the cost of, acquiring that right;the other significant terms on which such a right would be granted; andsuch other information as the Authority may from time to time specify by notice;
  • “owner”, in relation to a gas processing facility, includes a lessee and any person occupying or having control of the facility;
  • “pipe-line” has the same meaning as in the Pipe-lines Act 1962;
  • “public gas transporter” has the same meaning as in Part I of the 1986 Act.
  • “storage”, in relation to liquid gas in a gas 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 gas storage facility, shall be construed accordingly;
  • “the Authority” means the Gas and Electricity Markets Authority;
  • (6A) Subsections (1) to (3) of section 49 of the Pipe-lines Act 1962 (service of documents) shall apply for the purposes of this section as they apply for the purposes of that Act.
  • (7) Section 91 of the Energy Act 2011 (meaning of “associate”) applies for the purposes of subsection (3) of this section as it applies for the purposes of section 82(7)(d) and (9)(a) of that Act.
  • (8) In relation to any time before the appointed day, this section shall have effect as if for the words “public gas transporter”, in each place where they occur, there were substituted the words “public gas supplier”.

Supplemental

Duty of Director to advise etc

13

It shall be the duty of the Gas and Electricity Markets Authority, where either it considers it expedient or it is requested by the Secretary of State to do so, to give information, advice and assistance to the Secretary of State with respect to any matter in respect of which any function of the Secretary of State under this Act is exercisable.

Financial provisions

14

There shall be paid out of money provided by Parliament any increase attributable to this Act in the sums payable out of money so provided under any other Act.

Interpretation

15

In this Act—

  • “the 1986 Act” means the Gas Act 1986;
  • “the appointed day” means the day appointed under section 18(2) below.

Minor and consequential amendments

16
  • (1) The enactments and instrument specified in Schedule 4 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 public general Act passed before the appointed day as appear to him necessary or expedient in respect of—
  • (a) any reference in that provision to a public gas supplier;
  • (b) any reference in that provision (in whatever terms) to a person authorised to supply gas through pipes by virtue of section 7 or 8 of the 1986 Act; or
  • (c) any reference in that provision (in whatever terms) to a person carrying on a gas undertaking or to such an undertaking.
  • (3) The Secretary of State may by order make such consequential modifications of any provision contained in—
  • (a) any Act passed before the appointed day which is not a public general Act; or
  • (b) any subordinate legislation (within the meaning of the Interpretation Act 1978) made before that day,

as appear to him necessary or expedient.

  • (4) An order under subsection (2) or (3) above shall be made by statutory instrument which shall be subject to annulment in pursuance of a resolution of either House of Parliament.

Transitional provisions, savings and repeals

17
  • (1) The transitional provisions and savings contained in Schedule 5 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).
  • (2) In that Schedule, unless the context otherwise requires, expressions which are also used in the 1986 Act have the same meanings as in that Act.
  • (3) The Secretary of State may by order make such other transitional provisions and savings as appear to him necessary or expedient.
  • (4) An order under subsection (3) above shall be made by statutory instrument which shall be subject to annulment in pursuance of a resolution of either House of Parliament.
  • (5) The enactments specified in Schedule 6 to this Act are hereby repealed to the extent specified in the third column of that Schedule.

Short title, commencement and extent

18
  • (1) This Act may be cited as the Gas Act 1995.
  • (2) This Act, except—
  • (a) this section;
  • (b) sections 8(2), 11(1) to (5), 12 and 13;
  • (c) section 17(1) and (2) and Schedule 5; and
  • (d) so far as relating to the repeal of section 62(7) of the 1986 Act, section 17(5) and Schedule 6,

shall come into force on the appointed day, that is to say, such day as the Secretary of State may by order made by statutory instrument under this subsection appoint.

  • (3) Without prejudice to section 13 of the Interpretation Act 1978 (anticipatory exercise of powers), any power conferred on the Secretary of State or the Director by a provision of this Act which comes into force by virtue of subsection (2) above may be exercised before the appointed day provided that nothing done in the exercise of that power has effect before that day.
  • (4) Section 12 above shall come into force on such day as the Secretary of State may by order made by statutory instrument under this subsection appoint.
  • (5) This Act, except—
  • (a) this section;
  • (b) subsections (1) to (6) of section 11;
  • (c) paragraphs 1 to 3, 6, 7, 23 and 30 of Schedule 5 and section 17(1) and (2) so far as relating to those paragraphs; and
  • (d) Schedule 6 and section 17(5) so far as relating to the repeals of paragraph 1 of Schedule 5 to the Fair Trading Act 1973 and sections 62(7) and 63 of and paragraph 15(4) of Schedule 7 to the 1986 Act,

does not extend to Northern Ireland.

SCHEDULE 1

SCHEDULE 2

SCHEDULE 3

Assignment of licences

1

After section 8 of the 1986 Act there shall be inserted the following section—

(8AA) (1) A licence shall be capable of being assigned either generally or— (a) in the case of a licence under section 7 above, so far as relating to the whole or any part of an authorised area or any specified pipe-line system; (b) in the case of a licence under section 7A above, so far as relating to any specified premises, but only if it includes a condition authorising such assignment. In this subsection “specified” means specified in the licence, or of a description, or situated in an area, so specified. (2) A licence shall not be capable of being assigned except with the consent of the Director. (3) In deciding whether to give his consent under subsection (2) above, the Director shall apply the same criteria as he would apply if— (a) in the case of a general assignment, he were deciding whether to grant a corresponding licence to the assignee; (b) in the case of any other assignment, he were deciding whether— (i) to grant to the assignee a licence corresponding to so much of the licence as is proposed to be assigned; and (ii) to grant to the assignor a licence corresponding to so much of the licence as is proposed to be retained. (4) Subject to subsection (5) below, a consent under subsection (2) above may be given subject to compliance with— (a) such modification or other conditions as the Director considers necessary or expedient for the purpose of protecting the interests of consumers; and (b) such incidental or consequential modification conditions as he considers necessary or expedient, and in the case of an assignment other than a general assignment, modification conditions may make as respects so much of the licence as is proposed to be retained by the assignor provision different from that made as respects so much of the licence as is proposed to be assigned. (5) The Director shall— (a) give the Health and Safety Executive not less than 28 days’ notice of any proposal of his to give a consent under subsection (2) above; and (b) give that Executive and the Secretary of State not less than 28 days’ notice of any proposal of his to impose a modification condition; and if, before the expiry of the time specified in a notice given to the Secretary of State under paragraph (b) above, the Secretary of State directs the Director not to impose the condition, the Director shall comply with the direction. (6) A licence may include conditions which must be complied with before the licence can be assigned. (7) An assignment, or purported assignment, of a licence shall be void— (a) if the licence is not capable of assignment; (b) if the assignment, or purported assignment, is in breach of a condition of the licence; or (c) if there has, before the assignment or purported assignment, been a contravention of a condition subject to compliance with which the consent required by subsection (2) above is given. (8) A licence shall not be capable of being assigned under or by virtue of any other provision of this Act. (9) In this section— - “assignment” includes any form of transfer and cognate expressions shall be construed accordingly; - “modification condition” means a condition requiring or otherwise providing for the making of modifications to the conditions of a licence. (10) Any reference in this section to “assignment” shall be construed in Scotland as a reference to assignation.

Modification or removal of certain limits

2
  • (1) In subsection (1) of section 8A of the 1986 Act (modification or removal of the 25,000 therm limits), for the words “section 4(2)(d) or 8(5)(b) above or section 10(5) or 14(3) or (4)(b) below” there shall be substituted the words “ 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 ”.
  • (2) Subsections (3) and (4) of that section shall cease to have effect.

Powers and duties of public gas transporters

3

For section 9 of the 1986 Act there shall be substituted the following section—

(9) (1) It shall be the duty of a public gas transporter as respects each authorised area of his— (a) to develop and maintain an efficient and economical pipe-line system for the conveyance of gas; and (b) subject to paragraph (a) above, to comply, so far as it is economical to do so, with any reasonable request for him to connect to that system, and convey gas by means of that system to, any premises. (2) It shall also be the duty of a public gas transporter to avoid any undue preference or undue discrimination— (a) in the connection of premises to any pipe-line system operated by him; or (b) in the terms on which he undertakes the conveyance of gas by means of such a system. (3) The following provisions shall have effect, namely— (a) Schedule 3 to this Act (which provides for the acquisition of land by public gas transporters); and (b) Schedule 4 to this Act (which relates to the breaking up of streets and bridges by such transporters).

Duty to connect certain premises

4

For section 10 of the 1986 Act there shall be substituted the following section—

(10) (1) Subsection (2) below applies to any premises in an authorised area of a public gas transporter which— (a) are situated within 23 metres from a relevant main of the transporter; or (b) could be connected to any such main by a pipe supplied and laid, or proposed to be supplied and laid, by the owner or occupier of the premises. (2) Subject to the provisions of this Part and any regulations made under those provisions, a public gas transporter shall, on being required to do so by the owner or occupier of any premises to which this subsection applies— (a) in the case of premises falling within paragraph (a) of subsection (1) above, connect the premises to the relevant main, and supply and lay any pipe that may be necessary for that purpose; and (b) in the case of premises falling within paragraph (b) of that subsection, connect the premises to the relevant main by the pipe there mentioned; and in the following provisions of this section “connect”, in relation to any premises, means connect to a relevant main of a public gas transporter and “connection” shall be construed accordingly. (3) Subject to the provisions of this Part and any regulations made under those provisions, where any premises are connected (whether by virtue of subsection (2) above or otherwise), the public gas transporter shall maintain the connection until such time as it is no longer required by the owner or occupier of the premises. (4) Where any person requires a connection in pursuance of subsection (2) above, he shall serve on the public gas transporter a notice specifying— (a) the premises in respect of which the connection is required; and (b) the day (not being earlier than a reasonable time after the service of the notice) upon which the connection is required to be made. (5) Where any pipe is supplied and laid by a public gas transporter in pursuance of subsection (2)(a) above, the cost of supplying and laying the pipe shall, if and to the extent that the transporter so requires and the conditions of his licence so allow, be defrayed by the person requiring the connection. (6) Where at any time a public gas transporter connects any premises under subsection (2)(b) above— (a) the pipe supplied and laid by the owner or occupier of the premises; and (b) any rights of the owner or occupier which relate to the laying, maintenance, repair, alteration or removal of the pipe, shall at that time vest in and become property or rights of the transporter. (7) The Director may, with the consent of the Secretary of State, make provision by regulations for entitling a public gas transporter to require a person requiring a connection in pursuance of subsection (2) above to pay to the transporter an amount in respect of the expenses of the laying of the main used for the purpose of making that connection if— (a) the connection is required within the prescribed period after the laying of the main; (b) a person for the purpose of connecting whose premises the main was laid has made a payment to the transporter in respect of those expenses; (c) the amount required does not exceed any amount paid in respect of those expenses by such a person or by any person previously required to make a payment under the regulations; and (d) the transporter has not recovered those expenses in full. (8) Nothing in subsection (2) or (3) above shall be taken as requiring a public gas transporter to connect, or maintain the connection of, any premises if the supply of gas to those premises is likely to exceed 75,000 therms in any period of twelve months. (9) Nothing in subsection (2) or (3) above shall be taken as requiring a public gas transporter to connect, or to maintain the connection of, any premises if— (a) he is prevented from doing so by circumstances not within his control; (b) circumstances exist by reason of which his doing so would or might involve danger to the public, and he has taken all such steps as it was reasonable to take both to prevent the circumstances from occurring and to prevent them from having that effect; or (c) in the case of premises falling within paragraph (b) of subsection (1) above, the pipe supplied and laid by the owner or occupier of the premises is not fit for the purpose. (10) Where— (a) any person requires a connection to be made or maintained in pursuance of subsection (2) or (3) above; (b) the making or maintenance of the connection would involve a new or increased supply of gas to the premises in question; (c) the public gas transporter reasonably expects that, if the connection were made or maintained, gas would be supplied to the premises in question at a rate exceeding 2,500 therms a year; and (d) the new or increased supply is such that the connection cannot be made or maintained without the laying of a new main, or the enlarging of an existing main, or the construction or enlarging of any other works required for the conveyance of gas, the transporter may, if he thinks fit, refuse to make or maintain the connection unless that person enters into a written contract with the transporter to make such payments to him as he may reasonably require having regard to the expense to be incurred in laying or enlarging the main or constructing or enlarging the other works and the extent to which it is reasonable to expect that the transporter will recover that expense from elsewhere. (11) If and to the extent that regulations made by the Director with the consent of the Secretary of State so provide, subsection (10) above shall have effect as if— (a) the reference in paragraph (d) to the laying of a new main, the enlarging of an existing main or the construction or enlarging of any other works required for the conveyance of gas included a reference to a new main which had previously been laid, an existing main which had previously been enlarged or any other works required for the conveyance of gas which had previously been constructed or enlarged; (b) the reference to the expense to be incurred in laying or enlarging the main or constructing or enlarging the other works included a reference to the expense which had been so incurred; and (c) the reference to the extent to which it is reasonable to expect that the transporter will recover that expense from elsewhere included a reference to the extent to which the transporter had been able so to recover that expense. (12) Subject to subsection (13) below, in this section “relevant main”, in relation to a public gas transporter, means any distribution main in his authorised area which is being used for the purpose of giving a supply of gas to any premises in that area at a rate not exceeding 75,000 therms a year. (13) Any pipe which— (a) vests in and becomes the property of a public gas transporter by virtue of subsection (6) above; and (b) apart from this subsection, would be a relevant main for the purposes of this section, shall be such a main if, and only if, it has been declared to be such a main by the transporter. (14) A public gas transporter shall make a declaration under subsection (13) above in respect of each pipe falling within that subsection which is fit for the purpose of being a relevant main; and a declaration under that subsection shall not be capable of being revoked.

Power to require security

5

For section 11 of the 1986 Act there shall be substituted the following section—

(11) (1) Where any person requires a connection in pursuance of paragraph (a) of section 10(2) above and a pipe falls to be supplied and laid by the public gas transporter in pursuance of that paragraph— (a) the transporter may require that person to give him reasonable security for the payment to him of all money which may become due to him in respect of the supply and laying of the pipe; and (b) if that person fails to give such security or, where any security given by him has become invalid or insufficient, fails to provide alternative or additional security, the transporter may if he thinks fit refuse to supply and lay the pipe for so long as the failure continues. (2) Where any amount is deposited with a public gas transporter by way of security in pursuance of this section, the transporter shall pay interest on that amount, at such rate as may from time to time be fixed by the transporter with the approval of the Director, in respect of the period during which it remains in the hands of the transporter. (3) In this section “connection” shall be construed in accordance with section 10(2) above.

Methods of calculating therms

6

For section 12 of the 1986 Act there shall be substituted the following section—

(12) (1) Except in prescribed cases, the number of therms or kilowatt hours conveyed by a public gas transporter to premises, or to pipe-line systems operated by other public gas transporters, shall be calculated in the prescribed manner— (a) on the basis of calorific values of the gas determined by the transporter in accordance with regulations under this section, or so determined by another public gas transporter and adopted by the transporter in accordance with such regulations; or (b) if and to the extent that regulations under this section so provide and the transporter thinks fit, on the basis of declared calorific values of the gas; and regulations under this section shall be made by the Director with the consent of the Secretary of State. (2) In this Part— - “calorific value”, in relation to any gas, means the number of megajoules (gross) which would be produced by— 1. the combustion of one cubic metre of the gas measured at a temperature of 15°C and a pressure of 1013.25 millibars; or 2. if regulations under this section so provide, the combustion of one kilogram of the gas, - “declared calorific value”, in relation to any gas conveyed by a public gas transporter, means a calorific value declared by the transporter in accordance with regulations under this section, or so declared by another public gas transporter and adopted by the transporter in accordance with such regulations. (3) Regulations under this section may make provision as to the manner in which prescribed information with respect to the making of calculations in accordance with the regulations is to be made available to other licence holders and to the public. (4) Regulations under this section made for the purposes of subsection (1)(a) above may make provision— (a) for requiring determinations of calorific values of gas conveyed by public gas transporters to be made on the basis of samples of gas taken at such places or premises, at such times and in such manner as the Director may direct; (b) for requiring such determinations to be made at such places or premises, at such times and in such manner as the Director may direct; (c) as to the manner in which the results of such determinations are to be made available to other licence holders and to the public; (d) for requiring such premises, apparatus and equipment as the Director may direct to be provided and maintained by public gas transporters for the purpose of making such determinations; (e) for requiring public gas transporters to carry out tests of apparatus and equipment so provided and maintained by them; and (f) for requiring the results of such tests to be notified to the Director or to any person appointed under section 13(1) below, and to be made available to other licence holders and to the public. (5) Regulations under this section made for the purposes of subsection (1)(b) above may make provision— (a) for requiring declarations of calorific values of gas conveyed by public gas transporters to be made at such times and in such manner as the Director may direct; (b) as to the times when such declarations are to take effect, and as to the manner in which the calorific values declared are to be made available to other licence holders and to the public; (c) for imposing requirements on public gas transporters as to the correlation between— (i) the calorific values of the gas conveyed by them for any period; and (ii) the calorific values declared by them for that period; (d) for requiring public gas transporters to carry out tests of gas for the purpose of ascertaining whether they are complying with the requirements of regulations made by virtue of paragraph (c) above; (e) for requiring such tests to be carried out at such places or premises, at such times and in such manner as the Director may direct; and (f) for requiring the results of such tests to be notified to the Director or to any person appointed under section 13(1) below, and to be made available to other licence holders and to the public. (6) Subject to subsection (7) below, the Director may by notice in writing require a public gas transporter to give to the Director, or to any person appointed by him for the purpose, within such time and at such place as may be specified in the notice, such information as the Director may reasonably require for the purpose of making regulations under this section or section 13 below or of giving directions under such regulations. (7) A public gas transporter shall not be required under subsection (6) above to give any information which he could not be compelled to give in evidence in civil proceedings before the court; and in this subsection “the court” means— (a) in relation to England and Wales, the High Court; (b) in relation to Scotland, the Court of Session.

Calorific values: tests of apparatus etc.

7

For section 13 of the 1986 Act there shall be substituted the following section—

(13) (1) The Director shall appoint competent and impartial persons— (a) to carry out tests of apparatus and equipment provided and maintained by public gas transporters in pursuance of regulations made by virtue of subsection (4)(d) of section 12 above for the purpose of ascertaining whether they comply with the regulations; (b) to carry out tests of gas conveyed by public gas transporters where the number of therms or kilowatt hours falls to be calculated in accordance with subsection (1)(b) of that section for the purpose of ascertaining whether the transporters are complying with the requirements of regulations made by virtue of subsection (5)(c) of that section; and (c) generally to assist the Director in exercising his functions under, or under regulations made under, this section or that section. (2) Regulations under this section, which shall be made by the Director with the consent of the Secretary of State, may make provision— (a) for requiring such tests as are mentioned in subsection (1)(b) above to be carried out at such places or premises as the Director may direct; (b) for requiring such premises, apparatus and equipment as the Director may direct to be provided and maintained by public gas transporters for the purpose of carrying out such tests; (c) for requiring samples of gas to be taken by public gas transporters at such places or premises, at such times and in such manner as the Director may direct; and (d) for requiring samples of gas so taken to be provided by public gas transporters, for the purpose of carrying out such tests, at such places or premises, at such times and in such manner as the Director may direct. (3) Regulations under this section may make provision— (a) for persons representing the public gas transporter concerned to be present during the carrying out of such tests as are mentioned in subsection (1) above; (b) as to the manner in which the results of such tests are to be made available to other licence holders and to the public; and (c) for conferring powers of entry on property owned or occupied by public gas transporters for the purpose of carrying out such tests and otherwise for the purposes of this section or section 12 above. (4) There shall be paid out of money provided by Parliament to persons appointed under subsection (1) above who are members of the Director’s staff such remuneration and such allowances as may be determined by the Director with the approval of the Treasury, and such pensions as may be so determined may be paid out of money provided by Parliament to or in respect of such persons. (5) Every person who is a public gas transporter during any period shall pay to the Director such proportion (if any) as the Director may determine of— (a) any sums paid by him under subsection (4) above in respect of that period; and (b) such part of his other expenses for that period as he may with the consent of the Treasury determine to be attributable to his functions under section 12 above or this section; and any liability under this subsection to pay to the Director sums on account of pensions (whether paid by him under subsection (4) above or otherwise) shall, if the Director so determines, be satisfied by way of contributions calculated, at such rate as may be determined by the Treasury, by reference to remuneration. (6) Any sums received by the Director under this section shall be paid into the Consolidated Fund.

Fixing of tariffs

8

Section 14 of the 1986 Act (fixing of tariffs) shall cease to have effect.

Determination of disputes

9

Section 14A of the 1986 Act (which is superseded by paragraph 26 below) shall cease to have effect.

Billing disputes

10
  • (1) In subsection (2) of section 15A of the 1986 Act (billing disputes), for the words “public gas supplier and a tariff customer” there shall be substituted the words “ gas supplier and a domestic customer ”.
  • (2) In subsection (8) of that section—
  • (a) for the words “public gas supplier” there shall be substituted the words “ gas supplier ”; and
  • (b) for the words “tariff customer” there shall be substituted the words “ domestic customer ”.
  • (3) After subsection (9) of that section there shall be inserted the following subsection—

(10) In this Part “domestic customer” means a person who is supplied by a gas supplier with gas conveyed to particular premises at a rate which is reasonably expected not to exceed 2,500 therms a year.

Promotion of efficient use of gas

11

Section 15B of the 1986 Act (which is superseded by paragraph 36 below) shall cease to have effect.

Standards of quality

12

For section 16 of the 1986 Act there shall be substituted the following section—

(16) (1) The Director— (a) shall, after consultation with public gas transporters and with the consent of the Secretary of State, by regulations prescribe standards of pressure and purity to be complied with by public gas transporters in conveying gas to premises; and (b) may, after such consultation and with such consent, so prescribe other standards with respect to the properties, condition and composition of gas so conveyed. (2) The Director— (a) shall, after consultation with such persons and organisations as he considers appropriate and with the consent of the Secretary of State, by regulations prescribe standards of pressure and purity to be complied with by persons in supplying to premises gas which is conveyed through pipes to the premises otherwise than by a public gas transporter or in accordance with paragraph 1 of Schedule 2A to this Act; and (b) may, after such consultation and with such consent, so prescribe other standards with respect to the properties, condition and composition of such gas so supplied. (3) The Director shall appoint competent and impartial persons to carry out tests of— (a) gas which is conveyed by a public gas transporter; and (b) gas which is supplied by any person (a “relevant supplier”) to premises and is conveyed through pipes to the premises otherwise than by such a transporter or in accordance with paragraph 1 of Schedule 2A to this Act, for the purpose of ascertaining whether it conforms with the standards prescribed under this section. (4) Regulations under this section may make provision— (a) for requiring such tests to be carried out at such places as the Director may direct; (b) for requiring such premises, apparatus and equipment as the Director may direct to be provided and maintained by public gas transporters and relevant suppliers for the purpose of carrying out such tests; (c) for persons representing the public gas transporter or relevant supplier concerned to be present during the carrying out of such tests; (d) for the manner in which the results of such tests are to be made available to the public; and (e) for conferring powers of entry on property of public gas transporters and relevant suppliers for the purpose of deciding where tests are to be carried out and otherwise for the purposes of this section. (5) There shall be paid out of money provided by Parliament to persons appointed under subsection (3) above who are members of the Director’s staff such remuneration and such allowances as may be determined by the Director with the approval of the Treasury, and such pensions as may be so determined may be paid out of money provided by Parliament to or in respect of those persons. (6) Every person who is a public gas transporter or relevant supplier during any period shall pay to the Director such proportion (if any) as the Director may determine of— (a) any sums paid by him under subsection (5) above in respect of that period; and (b) such part of his other expenses for that period as he may with the consent of the Treasury determine to be attributable to his functions in connection with the testing of gas for the purposes of this section; and any liability under this subsection to pay to the Director sums on account of pensions (whether paid by him under subsection (5) above or otherwise) shall, if the Director so determines, be satisfied by way of contributions calculated, at such rate as may be determined by the Treasury, by reference to remuneration. (7) Any sums received by the Director under this section shall be paid into the Consolidated Fund.

Meter testing and stamping

13

For section 17 of the 1986 Act there shall be substituted the following section—

(17) (1) No meter shall be used for the purpose of ascertaining the quantity of gas supplied through pipes to any person unless it is stamped either by, or on the authority of, a meter examiner appointed under this section or in such other manner as may be authorised by regulations under this section. (2) Subject to subsections (3) to (5) below, it shall be the duty of a meter examiner who is a member of the Director’s staff, on being required to do so by any person and on payment of the requisite fee— (a) to examine any meter used or intended to be used for ascertaining the quantity of gas supplied to any person; and (b) to stamp, or authorise the stamping of, that meter. (3) A meter examiner shall not stamp, or authorise the stamping of, any meter unless he is satisfied that it is of such pattern and construction and is marked in such manner as is approved by the Director and that the meter conforms with such standards as may be prescribed for the purposes of this subsection. (4) A meter examiner may stamp or authorise another person to stamp a meter, notwithstanding that he has not himself examined it, if— (a) the meter was manufactured or repaired by the person submitting it to the examiner; (b) that person has obtained the consent of the Director to his submission; and (c) any conditions subject to which the consent was given have been satisfied. (5) A meter examiner may authorise another person to stamp a meter, notwithstanding that he has not himself examined it, if— (a) the meter was manufactured or repaired by that person; (b) that person has obtained the consent of the Director to his stamping of the meter; and (c) any conditions subject to which the consent was given have been satisfied. (6) The Director shall appoint competent and impartial persons as meter examiners for the purposes of this section. (7) There shall be paid out of money provided by Parliament to meter examiners who are members of the Director’s staff such remuneration and such allowances as may be determined by the Director with the approval of the Treasury, and such pensions as may be so determined may be paid out of money provided by Parliament to or in respect of such examiners. (8) All fees payable to meter examiners who are members of the Director’s staff for the performance of functions conferred by or under this section shall be paid to the Director; and any sums received by him under this subsection shall be paid into the Consolidated Fund. (9) Regulations under this section, which shall be made by the Director with the consent of the Secretary of State, may make provision— (a) for re-examining meters already stamped, and for the cancellation of stamps in the case of meters which no longer conform with the prescribed standards and in such other circumstances as may be prescribed; (b) for requiring meters to be periodically overhauled; and (c) for the revocation of any approval given by the Director to any particular pattern or construction of meter, and for requiring existing meters of that pattern or construction to be replaced within such period as may be prescribed for the purposes of this subsection. (10) The fees to be paid to meter examiners who are members of the Director’s staff for the performance of functions conferred by or under this section, and the persons by whom they are to be paid, shall be such as the Director may, with the approval of the Treasury, from time to time determine; and a determination under this subsection may— (a) make different provision for different areas or in relation to different cases or different circumstances; and (b) make such supplementary, incidental or transitional provision as the Director considers necessary or expedient. (11) If any person supplies gas through a meter which has not been stamped under this section, he shall be guilty of an offence and liable on summary conviction to a fine not exceeding level 3 on the standard scale. (12) Where the commission by any person of an offence under subsection (11) above is due to the act or default of some other person, that other person shall be guilty of the offence; and a person may be charged with and convicted of the offence by virtue of this subsection whether or not proceedings are taken against the first-mentioned person. (13) In any proceedings for an offence under subsection (11) above it shall be a defence for the person charged to prove that he took all reasonable steps and exercised all due diligence to avoid committing the offence. (14) The preceding provisions of this section shall not have effect in relation to the supply of gas to a person under any agreement providing for the quantity of gas supplied to him to be ascertained by a meter designed for rates of flow which, if measured at a temperature of 15°C and a pressure of 1013.25 millibars, would exceed 1600 cubic metres an hour. (15) Regulations under this section may provide that subsection (14) above shall have effect as if for the number of cubic metres an hour which is for the time being applicable for the purposes of that subsection there were substituted such lower number of cubic metres an hour as the Director considers appropriate.

Safety regulations

14
  • (1) In subsection (2) of section 18 of the 1986 Act (safety regulations)—
  • (a) in paragraph (a), after the words “gas fitting, or” there shall be inserted the words “ any part of the gas system on the premises, that is to say, ” and after the words “used for the” there shall be inserted the words “ conveyance or ”; and
  • (b) in paragraph (c), for the words from “gas supply system” to the end there shall be substituted the words “ gas system on the premises, or disconnect the premises or, if the premises are not connected, to signify the refusal of the relevant authority to convey gas or, as the case may be, allow gas to be conveyed to the premises ”.
  • (2) In subsection (4) of that section—
  • (a) in paragraph (a), for the words “part of any gas supply system” there shall be substituted the words “ any part of any gas system ”;
  • (b) in paragraph (b), for the words “restoring the supply of gas to any premises where it has been cut off” there shall be substituted the words “ reconnecting any premises which have been disconnected ”; and
  • (c) in paragraph (c), for the word “supplied” there shall be substituted the word “ conveyed ” and for the words “give or, as the case may be, allow a supply” there shall be substituted the words “ convey gas or, as the case may be, allow gas to be conveyed ”.
  • (3) In subsection (8) of that section, for paragraphs (a) and (b) there shall be substituted the words “ any reference to a gas operator were a reference to the relevant authority ”.
  • (4) For subsection (9) of that section there shall be substituted the following subsections—

(9) In this section “the relevant authority”— (a) in relation to dangers arising from the conveyance of gas by a public gas transporter, or from the use of gas conveyed by such a transporter, means that transporter; and (b) in relation to dangers arising from the conveyance of gas by a person other than a public gas transporter, or from the use of gas conveyed by such a person, means the Secretary of State. (10) Where the relevant authority is a public gas transporter, any reference in this section to any officer authorised by the authority includes a reference to any officer authorised by another such transporter with whom the authority has made arrangements for officers authorised by the other transporter to discharge any functions of the authority under this section. (11) Except in cases of emergency, no officer shall be authorised by a public gas transporter to exercise any powers of entry conferred by regulations under this section unless the transporter has taken all reasonable steps to ensure that he is a fit and proper person to exercise those powers.

Gas escape regulations

15

After section 18 of the 1986 Act there shall be inserted the following section—

(18A) (1) The Secretary of State may by regulations make provision— (a) for empowering any officer authorised by a public 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 public 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 public 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.

Acquisition of rights to use pipe-line systems

16

For section 19 of the 1986 Act there shall be substituted the following section—

(19) (1) In the case of a pipe-line system operated by a public gas transporter, any person may, after giving the transporter not less than 28 days’ notice, apply to the Director for directions under this section which would secure to the applicant a right of a description specified in the application to have conveyed by the system gas which— (a) is of a kind so specified; and (b) is of, or of a kind similar to, the kind which the system is designed to convey. (2) Where an application is made under subsection (1) above, it shall be the duty of the Director— (a) to decide whether the application is to be adjourned (so as to enable negotiations or further negotiations to take place), considered further or rejected; (b) to give notice of his decision to the applicant; (c) in the case of a decision that the application is to be considered further, to give to the transporter, to the Health and Safety Executive and to any person who has a right to have gas conveyed by the pipe-line system, notice that the application is to be so considered and an opportunity of being heard about the matter. (3) Where, after further considering an application under subsection (1) above, the Director is satisfied that the giving of directions under this section would not prejudice the efficient operation of the pipe-line system, or the conveyance by the system of— (a) the quantities of gas which the public gas transporter requires or may reasonably be expected to require to be conveyed by the system to enable the transporter to comply with the conditions of his licence and to perform his contractual obligations; (b) the quantities of gas which any person who has a right to have gas conveyed by the system is entitled to require to be so conveyed in the exercise of that right, the Director may give such directions to the transporter. (4) Directions under this section may— (a) specify the terms on which the Director considers the public gas transporter should enter into an agreement with the applicant for all or any of the following purposes— (i) for securing to the applicant the right to have conveyed by the pipe-line system, for the period specified in the directions and in the quantities so specified or determined by or under the directions, gas which is of a kind so specified; (ii) for securing that the exercise of that right is not prevented or impeded; (iii) for regulating the charges which may be made for the conveyance of gas by virtue of that right; (iv) for securing to the applicant such ancillary or incidental rights as the Director considers necessary or expedient, which may include the right to have a pipe-line of his connected to the pipe-line system by the transporter; (b) specify the sums or the method of determining the sums which the Director considers should be paid by way of consideration for any such right; and (c) require the transporter, if the applicant pays or agrees to pay those sums within a period specified in that behalf in the directions, to enter into an agreement with him on the terms so specified. (5) In giving any directions under this section, the Director shall apply the principle that the public gas transporter should be entitled to receive by way of charges for the conveyance of gas by virtue of the right— (a) the appropriate proportion of the costs incurred by the transporter in administering, maintaining and operating his pipe-line system; and (b) a return equal to the appropriate proportion of the return received by the transporter (otherwise than by virtue of the right) on the capital value of the system (including so much of that return as is set aside to meet the need from time to time to renew the system). (6) In subsection (5) above “the appropriate proportion” means such proportion as properly— (a) reflects the use made of the public gas transporter’s pipe-line system by virtue of the right as compared with the use made of that system for other purposes; and (b) takes into account the sums paid by way of consideration for the right and any sums paid in respect of the pipe-line system (whether by the applicant or by any other person) in pursuance of directions under section 21(1) below. (7) Any reference in this section to a right to have gas of any kind conveyed by a pipe-line system includes a reference to a right to introduce into, or take out of, such a system gas of that kind.

Construction of pipe-lines

17

Section 20 of the 1986 Act (construction of pipe-lines) shall cease to have effect.

Increase of capacity etc. of pipe-lines

18
  • (1) For subsection (1) of section 21 of the 1986 Act (increase of capacity etc. of pipe-lines) there shall be substituted the following subsection—

(1) If in the case of a pipe-line system operated by a public gas transporter it appears to the Director, on the application of a person other than the transporter, that the system can and should be modified— (a) by installing in it a junction through which another pipe-line may be connected to the system; or (b) by modifying apparatus and works associated with a high pressure pipe-line so as to increase the capacity of the pipe-line, then, subject to subsection (3) below, the Director may, after giving to the transporter an opportunity of being heard about the matter and giving to the Health and Safety Executive notice of his proposed directions, give directions to the transporter in accordance with subsection (2) below in consequence of the application.

  • (2) In subsection (2) of that section—
  • (a) for the words “public gas supplier” there shall be substituted the words “ public gas transporter ”;
  • (b) for the words “for the purpose of defraying the cost of” there shall be substituted the words “ by way of consideration for ”; and
  • (c) for the words “the supplier”, in both places where they occur, there shall be substituted the words “ the transporter ”.
  • (3) In subsection (3) of that section, for the word “pipe-line”, in each place where it occurs, there shall be substituted the words “ pipe-line system ”.
  • (4) After subsection (3) of that section there shall be inserted the following subsection—

(3A) In giving any directions under this section, the Director shall apply the principle that, in so far as the following, namely— (a) the cost of carrying out the modifications; and (b) a reasonable element of profit, will not be recoverable by the public gas transporter from elsewhere, the transporter should be entitled to receive them by way of consideration for carrying out the modifications.

  • (5) After subsection (4) of that section there shall be inserted the following subsection—

(5) In this section— - “high pressure pipe-line” means any pipe-line which has a design operating pressure exceeding 7 bar gauge; - “pipe-line” has the same meaning as in the Pipe-lines Act 1962.

Effect of directions as respects pipe-lines

19

In subsection (1) of section 22 of the 1986 Act (effect of directions), for the words “19, 20(4) or 21(1)” there shall be substituted the words “ 19 or 21(1) ”.

Construction of pipe-lines by public gas transporters

20

After section 22 of the 1986 Act there shall be inserted the following section—

(22A) (1) A public gas transporter shall not at any time execute in an authorised area of another public gas transporter any works for the construction of a pipe-line unless— (a) he has given the other transporter a notice stating that he intends to construct the pipe-line; (b) he has consulted with that transporter as to exactly where in that area the proposed pipe-line is to be located, having regard to the location of other pipe-lines in that area; and (c) he has consulted with that transporter as to the manner in which— (i) the safety of the pipe-line is to be secured; and (ii) any escapes of gas (actual or suspected) from the pipe-line are to be dealt with. (2) A notice under subsection (1)(a) above shall— (a) specify the points between which the proposed pipe-line is to run and be accompanied by a map (drawn to an appropriate scale) on which is delineated the route which it is proposed to take; (b) specify the length, diameter and operating pressure of the proposed pipe-line and the kind of gas which it is designed to convey; and (c) contain such other particulars (if any) as may be prescribed. (3) In this section— - “construction”, in relation to a pipe-line, includes placing; - “pipe-line” has the same meaning as in the Pipe-lines Act 1962. (4) For the purposes of this section the execution of works in land for the purpose of determining whether or not it is suitable for the placing in it of a pipe-line and the carrying out of surveying operations for the purpose of settling the route of a proposed pipe-line shall be deemed not to constitute the execution of works for the construction of a pipe-line.

Modification of licences by agreement

21

For section 23 of the 1986 Act there shall be substituted the following section—

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