Gas Act 1995

(23) (1) Subject to the following provisions of this section, the Director may— (a) modify the conditions of a particular licence; or (b) modify the standard conditions of licences under section 7 above, licences under subsection (1) of section 7A above or licences under subsection (2) of that section. (2) Where at any time the Director modifies under subsection (1)(b) above the standard conditions of licences under section 7 above, licences under subsection (1) of section 7A above or licences under subsection (2) of that section, he— (a) shall also make (as nearly as may be) the same modifications of those conditions for the purposes of their incorporation in licences under that section or, as the case may be, that subsection granted after that time; and (b) may make such incidental or consequential modifications as he considers necessary or expedient of any conditions of licences under that provision granted before that time. (3) Before making modifications under this section, 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proposed modifications may be made, and shall consider any representations or objections which are duly made and not withdrawn. (4) A notice under subsection (3) 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 holder of the licence or, as the case may be, the relevant licence holders, to the Secretary of State, to the Health and Safety Executive and to the Council. (5) If, within the time specified in the notice under subsection (3) above, the Secretary of State directs the Director not to make any modification, the Director shall comply with the direction. (6) The Director shall not make any modifications under subsection (1)(a) above unless— (a) the holder of the licence has consented to the modifications; and (b) in the case of standard conditions of a licence under subsection (1) or (2) of section 7A above, the Director is of the opinion that the modifications— (i) are requisite to meet the circumstances of the particular case; and (ii) 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). (7) The Director shall not make any modifications under subsection (1)(b) above unless— (a) the percentage given by each of subsections (8) and (9) below is not less than 90 per cent; (b) the percentage given by subsection (8) below is not less than 90 per cent and no relevant activities have been carried on by relevant licence holders; or (c) subsection (10) below applies. (8) The percentage given by this subsection is the fraction given by the following formula expressed as a percentage, namely— $$CC+N$where—C = the number of consenting holders;N = the number of non-consenting holders.$ (9) The percentage given by this subsection is the fraction given by the following formula expressed as a percentage, namely— $$CC+N$where—C = the volume of gas to which relevant activities carried on by consenting holders relate;N = the volume of gas to which relevant activities carried on by non-consenting holders relate,as estimated (in each case) by the Director on the basis of the information available to him.$ (10) This subsection applies where the Director is of the opinion— (a) that the effect of the standard conditions is such as to impose a burden affecting relevant licence holders in the carrying on of activities to which the modifications relate; (b) that the modifications would remove or reduce the burden without removing any necessary protection; and (c) in the case of a licence under subsection (1) or (2) of section 7A above, that the modifications are such that no holder of such a licence would be unduly disadvantaged in competing with other holders of such licences. (11) Where at any time the Director modifies standard conditions under subsection (2)(a) above for the purposes of their incorporation in licences under section 7 or 7A(1) or (2) above granted after that time, he shall publish the modifications in such manner as he considers appropriate. (12) In this section, in relation to modifications of standard conditions under subsection (1)(b) above— - “consenting holder” means a relevant licence holder who has consented to the modifications; - “non-consenting holder” means a relevant licence holder who has not so consented; - “relevant activity” means an activity to which the modifications relate and which is carried on in the period of twelve months immediately preceding the making of the modifications; - “relevant licence holder” means a licence holder whose licence incorporates the standard conditions.

Modification references to Monopolies Commission

22

• (1) For subsection (1) of section 24 of the 1986 Act (modification references to Monopolies Commission) there shall be substituted the following subsections—

(1) The Director may make to the Monopolies and Mergers Commission (in this Part referred to as “the Monopolies Commission”) a reference which is so framed as to require the Commission to investigate and report on the questions— (a) whether any matters which relate to— (i) the carrying on of activities authorised or required by a particular licence, or (ii) the storage of gas on terms which have been determined by the holder of a particular licence under section 7 above, or could have been determined by the holder if he had thought fit or had been required to determine them by or under a condition of the licence, and which are specified in the reference operate, or may be expected to operate, against the public interest; and (b) if so, whether the effects adverse to the public interest which those matters have or may be expected to have could be remedied or prevented by modifications of the relevant conditions, that is to say, the conditions of the licence. (1A) The Director may make to the Monopolies Commission a reference which is so framed as to require the Commission to investigate and report on the questions— (a) whether any matters which relate to the carrying on of activities authorised or required by— (i) licences under section 7 above, (ii) licences under subsection (1) of section 7A above which incorporate the standard conditions, or (iii) licences under subsection (2) of that section, and which are specified in the reference operate, or may be expected to operate, against the public interest; and (b) if so, whether the effects adverse to the public interest which those matters have or may be expected to have could be remedied or prevented by modifications of the relevant conditions, that is to say, the standard conditions of licences under that section or, as the case may be, that subsection.

• (2) In subsection (3) of that section, for the words “conditions of the authorisation” there shall be substituted the words “ relevant conditions ”.

• (3) In subsection (4) of that section, for the words “the public gas supplier” there shall be substituted the words “ the holder of the licence or, as the case may be, the relevant licence holders ”.

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

(4A) The Director shall also send a copy of a reference under subsection (1A) above, or a variation of such a reference, to the Secretary of State; and if, before the end of the period of 28 days beginning with the day on which he receives the copy of the reference or variation, the Secretary of State directs the Monopolies Commission not to proceed with the reference or, as the case may require, not to give effect to the variation, the Commission shall comply with the direction.

• (5) In subsection (6) of that section, for the words “section 4” there shall be substituted the words “ sections 4 and 4A(1) and (2) ”.

• (6) After subsection (7) of that section there shall be inserted the following subsection—

(8) In this section and sections 25 and 26 below— - “relevant conditions” has the meaning given by subsection (1) or (1A) above; - “relevant licence holder”— 1. in relation to a reference under subsection (1A) above, means the holder of a licence to which the reference relates; 2. in relation to modifications of relevant conditions within the meaning given by that subsection, means the holder of a licence which incorporates the conditions.

Reports on modification references

23

• (1) In subsection (1)(c) of section 25 of the 1986 Act (reports on modification references), for the words “the conditions of the authorisation” there shall be substituted the words “ the relevant conditions ”.

• (2) In subsection (2) of that section, for the words “public gas supplier” there shall be substituted the words “ holder of the licence or, as the case may be, any of the relevant licence holders ”.

• (3) In paragraph (a) of subsection (5) of that section, for the words “such a report, send a copy of it to the public gas supplier” there shall be substituted the words “ a report on a reference under section 24(1) above, send a copy of it to the licence holder ”.

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

(5A) Subject to subsection (6) below, the Director shall— (a) on receiving a report on a reference under section 24(1A) above, send a copy of it to the Secretary of State; and (b) not less than 14 days after that copy is received by the Secretary of State— (i) send another copy to the Council and to each relevant licence holder; and (ii) not less than 24 hours after complying with sub-paragraph (i) above, publish the copy sent to the Council in such manner as he considers appropriate for bringing the report to the attention of persons likely to be affected by it.

• (5) In subsection (6) of that section—

• (a) after the words “subsection (5)” there shall be inserted the words “ or (5A) ”; and

• (b) for the words from “the copy of the report” to the end there shall be substituted the words “ the copy of the report, or (as the case may be) each copy of the report, to be sent and published as mentioned in paragraph (b) of that subsection ”.

Modification following report

24

• (1) In subsection (1) of section 26 of the 1986 Act (modification following report), for the words “the conditions of the authorisation”, in both places where they occur, there shall be substituted the words “ the relevant conditions ”.

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

(1A) Where at any time the Director modifies under subsection (1) above the standard conditions of licences under section 7 above, licences under subsection (1) of section 7A above or licences under subsection (2) of that section, he— (a) shall also make (as nearly as may be) the same modifications of those conditions for the purposes of their incorporation in licences under that section or, as the case may be, that subsection granted after that time; and (b) may make such incidental or consequential modifications as he considers necessary or expedient of any conditions of licences under that provision granted before that time; and the above reference to subsection (1) above is a reference to that subsection as it applies in relation to a report on a reference under section 24(1A) above.

• (3) In subsection (4) of that section, for the words “public gas supplier” there shall be substituted the words “ holder of the licence or, as the case may be, the relevant licence holders, to the Health and Safety Executive ”.

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

(5) Where at any time the Director modifies standard conditions under subsection (1A)(a) above for the purposes of their incorporation in licences under section 7 or 7A(1) or (2) above granted after that time, he shall publish the modifications in such manner as he considers appropriate.

Modification by order under other enactments

25

For section 27 of the 1986 Act there shall be substituted the following section—

(27) (1) Where in the circumstances mentioned in subsection (3) or (4) below the Secretary of State by order exercises any of the powers specified in Parts I and II of Schedule 8 to the Fair Trading Act 1973 or section 10(2)(a) of the Competition Act 1980, the order may also provide for the modification of— (a) the conditions of a particular licence; or (b) the standard conditions of licences under section 7 above, licences under subsection (1) of section 7A above or licences under subsection (2) of that section, to such extent as may appear to him to be requisite or expedient for the purpose of giving effect to or of taking account of any provision made by the order. (2) Where at any time the Secretary of State modifies under subsection (1)(b) above the standard conditions of licences under section 7 above, licences under subsection (1) of section 7A above or licences under subsection (2) of that section, he— (a) shall also make (as nearly as may be) the same modifications of those conditions for the purposes of their incorporation in licences under that section or, as the case may be, that subsection granted after that time; and (b) may, after consultation with the Director, make such incidental or consequential modifications as he considers necessary or expedient of any conditions of licences under that provision granted before that time. (3) Subsection (1) above shall have effect where— (a) the circumstances are as mentioned in section 56(1) of the said Act of 1973 (order on report on monopoly reference), or in section 10(1) of the said Act of 1980 (order on report on competition reference); and (b) the monopoly situation exists in relation to, or (as the case may be) the anti-competitive practice relates to— (i) the carrying on of activities authorised or required by a licence; or (ii) the storage of gas on terms which have been determined by the holder of a licence under section 7 above, or could have been determined by the holder if he had thought fit or had been required to determine them by or under a condition of the licence. (4) Subsection (1) above shall also have effect where— (a) the circumstances are as mentioned in section 73(1) of the said Act of 1973 (order on report on merger reference); and (b) at least one of the two or more enterprises— (i) which ceased to be distinct enterprises; or (ii) in the application of that provision as it has effect by virtue of section 75(4)(e) of that Act, which would cease to be distinct enterprises, was or, as the case may be, is engaged in the carrying on of activities authorised or required by a licence. (5) Where at any time the Secretary of State modifies standard conditions under subsection (2)(a) above for the purposes of their incorporation in licences granted after that time, he shall publish those modifications in such manner as he considers appropriate. (6) In this section expressions which are also used in the said Act of 1973 or the said Act of 1980 have the same meanings as in that Act.

Determination of certain disputes

26

After section 27 of the 1986 Act there shall be inserted the following section—

(27A) (1) Subject to subsection (2) below, any dispute arising under section 9(1)(b) or (2), 10 or 11 above, regulations under section 10 above, or any provision of paragraphs 2, 3, 15 or 16 of Schedule 2B to this Act, between a public gas transporter or gas supplier and a person who is, or wishes to become, a domestic customer— (a) may be referred to the Director by either party, or with the agreement of either party, by the Council; and (b) on such a reference, shall be determined by order made either by the Director, or if he thinks fit by an arbitrator (or in Scotland arbiter) appointed by him. (2) No dispute which— (a) arises under section 9(1)(b) above and relates to the connection of any premises to a pipe-line system operated by a public gas transporter; or (b) arises under section 10 above, or regulations under that section, and relates to the connection of any premises to a main of such a transporter, may be referred to the Director after the end of the period of 12 months beginning with the time when the connection is made. (3) Any person making an order under subsection (1) above shall include in the order his reasons for reaching his decision with respect to the dispute. (4) The practice and procedure to be followed in connection with any such determination shall be such as the Director may consider appropriate. (5) Where any dispute between a public gas transporter and a person requiring a connection to a main of the transporter falls to be determined under this section, the Director may give directions as to the circumstances in which, and the terms on which, the transporter is to connect or (as the case may be) to maintain the connection pending the determination of the dispute. (6) Where any dispute between a gas supplier and a person requiring a supply of gas falls to be determined under this section, the Director may give directions as to the circumstances in which, and the terms on which, the supplier is to give or (as the case may be) to continue to give the supply pending the determination of the dispute. (7) Where any dispute arising under section 11(1) above falls to be determined under this section, the Director may give directions as to the security (if any) to be given pending the determination of the dispute. (8) Any direction under subsection (5), (6) or (7) above may be expressed to apply either in relation to a particular case or in relation to a class of case. (9) An order under this section— (a) may include such incidental, supplemental and consequential provision (including provision requiring either party to pay a sum in respect of the costs or expenses incurred by the person making the order) as that person considers appropriate; and (b) shall be final and— (i) in England and Wales, enforceable, in so far as it includes such provision as to costs or expenses, as if it were a judgment of a county court; and (ii) in Scotland, enforceable as if it were an extract registered decree arbitral bearing a warrant for execution issued by the sheriff. (10) In including in an order under this section any such provision as to costs or expenses, the person making the order shall have regard to the conduct and means of the parties and any other relevant circumstances.

Orders for securing compliance with certain provisions

27

• (1) In subsections (1), (2) and (4) of section 28 of the 1986 Act (orders for securing compliance with certain provisions), for the words “public gas supplier” there shall be substituted the words “ licence holder ”.

• (2) In subsection (5) of that section—

• (a) for the words “section 4” there shall be substituted the words “ section 4 or 4A ”;

• (b) for the words “public gas supplier” there shall be substituted the words “ licence holder ”; and

• (c) for the word “supplier”, in the second place where it occurs, there shall be substituted the words “ licence holder ”.

• (3) In subsections (6) and (7) of that section, for the words “public gas supplier” there shall be substituted the words “ licence holder ”.

• (4) After subsection (7) of that section there shall be inserted the following subsection—

(7A) Without prejudice to the generality of the power conferred by subsection (1) above, the provision that may be made in a final order includes, in particular, the imposition by the Director on the licence holder to whom the order relates of a requirement to pay to the Director a monetary penalty of such amount as may be appropriate, in all the circumstances of the case, in respect of the contravention in question.

• (5) In subsection (8) of that section—

• (a) in the definition of “relevant condition”, for the words “public gas supplier” there shall be substituted the words “ licence holder ” and for the word “authorisation” there shall be substituted the word “ licence ”; and

• (b) for the definition of “relevant requirement” there shall be substituted the following definition—

“relevant requirement”, in relation to a licence holder, means any requirement imposed on him by or under section 9(1) or (2), 10(2), (3) or (14), 11(2), 12(1) or (6), 18(11), 22A(1) or 27A(5) or (6) above or section 33B, 33BB, 33D or 33E below or any provision of paragraphs 3, 6, 15, 16, 20(5) and 28(2) of Schedule 2B to this Act.

• (6) After that subsection there shall be inserted the following subsection—

(9) Any sums received by the Director by way of monetary penalty under this section shall be paid into the Consolidated Fund.

Procedural requirements

28

In subsections (2) to (4), (6) and (7) of section 29 of the 1986 Act (procedural requirements), for the words “public gas supplier”, in each place where they occur, there shall be substituted the words “ licence holder ”.

Validity and effect of orders

29

• (1) In subsection (1) of section 30 of the 1986 Act (validity and effect of orders), for the words “public gas supplier” there shall be substituted the words “ licence holder ”.

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

(2) On any such application the court, if satisfied that the making or confirmation of the order was not within those powers or that the interests of the licence holder have been substantially prejudiced by a failure to comply with those requirements— (a) may quash the order or any provision of the order; or (b) if and to the extent that the application related to so much of an order as imposes a monetary penalty, may substitute a monetary penalty of such lesser amount as the court considers appropriate in all the circumstances of the case.

Duty of Director to investigate certain matters

30

• (1) In subsections (1) and (2) of section 31 of the 1986 Act (duty of Director to investigate certain matters), for the words “an enforcement matter” there shall be substituted the words “ a reserved matter ”.

• (2) For subsection (3) of that section there shall be substituted the following subsections—

(3) In this section and section 32 below “reserved matter” means any matter— (a) in respect of which any functions of the Director under section 28 above are or may be exercisable; and (b) which has not been designated by the Director as a matter which is to be investigated by the Council. (4) A designation under subsection (3) above may be made— (a) either generally or in relation to matters of a particular class or a particular matter; and (b) either unconditionally or subject to such conditions as may be specified in the designation. (5) Conditions specified in a designation under subsection (3) above may contain provision for the designation to cease to have effect, either generally or in relation to matters of a particular class or a particular matter, in such circumstances as may be determined by or under the conditions.

Duty of Council to investigate certain matters

31

• (1) For subsection (2) of section 32 of the 1986 Act (duty of Council to investigate certain matters) there shall be substituted the following subsection—

(2) This subsection applies to any matter (not being a reserved matter) in respect of which any functions of the Director under this Part are or may be exercisable.

• (2) In subsections (3) and (5) of that section, the words “paragraph (a) of” shall cease to have effect.

• (3) In subsection (4) of that section, the word “already” shall cease to have effect.

• (4) Subsections (6) and (7) of that section shall cease to have effect.

Preliminary investigation by Council of certain disputes

32

In subsection (1) of section 32A of the 1986 Act (preliminary investigation by Council of certain disputes), for the words “section 14A” there shall be substituted the words “ section 27A ”.

Power of Council to investigate other matters

33

• (1) In subsection (2) of section 33 of the 1986 Act (power of Council to investigate other matters), for the words “public gas suppliers” there shall be substituted the words “ gas suppliers ”.

• (2) In subsection (3) of that section, the words “but nothing in this subsection shall require the Council to send any such copy to the Director” shall cease to have effect.

• (3) After that subsection there shall be inserted the following subsection—

(4) References in this section to gas suppliers include references to persons supplying gas which they are authorised to supply by paragraph 1 of Schedule 2A to this Act.

Standards of performance in individual cases

34

• (1) In subsection (1) of section 33A of the 1986 Act (standards of performance in individual cases), for the words “public gas suppliers to tariff customers” there shall be substituted the words “ gas suppliers to domestic customers ”.

• (2) In subsection (2) of that section, for the words “the public gas suppliers” there shall be substituted the words “ gas suppliers ”.

• (3) In subsection (3) of that section—

• (a) for the words “public gas suppliers”, in each place where they occur, there shall be substituted the words “ gas suppliers ”;

• (b) for the words “tariff customers” there shall be substituted the words “ domestic customers ”; and

• (c) at the beginning of paragraph (d) there shall be inserted the words “ if the Director is of the opinion that the differences are such that no gas supplier would be unduly disadvantaged in competing with other gas suppliers, ”.

• (4) In subsection (4) 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 ”.

• (5) Subsections (10) and (11) of that section shall cease to have effect.

Overall standards of performance

35

• (1) In subsection (1) of section 33B of the 1986 Act (overall standards of performance), for the words “public gas suppliers” there shall be substituted the words “ gas suppliers ”.

• (2) In subsection (2) of that section, for the words “the public gas suppliers” there shall be substituted the words “ gas suppliers ”.

• (3) For subsection (3) of that section there shall be substituted the following subsections—

(3) Different standards may be determined for different gas suppliers if the Director is of the opinion that the differences are such that no gas supplier would be unduly disadvantaged in competing with other gas suppliers. (3A) Standards may be determined either as respects the provision of gas supply services generally or as respects the provision of such services to customers of a particular class or description.

• (4) In subsection (4) of that section, for the words “public gas supplier” there shall be substituted the words “ gas supplier ”.

Standards for promoting efficient use of gas

36

After section 33B of the 1986 Act there shall be inserted the following section—

(33BB) (1) The Director may, after consulting gas suppliers and persons or bodies appearing to him to be representative of persons likely to be affected, from time to time— (a) determine such standards of performance in connection with the promotion of the efficient use of gas by consumers as, in his opinion, ought to be achieved by gas suppliers; and (b) arrange for the publication, in such form and in such manner as he considers appropriate, of the standards so determined. (2) Different standards may be determined for different gas suppliers if the Director is of the opinion that the differences are such that no gas supplier would be unduly disadvantaged in competing with other gas suppliers. (3) Each gas supplier shall, in such form and manner and with such frequency as the Director may direct, take steps to inform his customers of— (a) the standards determined under this section which are applicable to that supplier; and (b) that supplier’s level of performance as respects those standards.

Information with respect to levels of performance

37

• (1) In subsection (1) of section 33C of the 1986 Act (information with respect to levels of performance), for the words “public gas suppliers”, in each place where they occur, there shall be substituted the words “ gas suppliers ”.

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

• (a) for the words “public gas supplier” there shall be substituted the words “ gas supplier ”; and

• (b) for the words “section 15B or 33B” there shall be substituted the words “ section 33B or 33BB ”.

• (3) In subsection (3) of that section, for the words “public gas supplier” there shall be substituted the words “ gas supplier ”.

• (4) In subsection (4) of that section, for the words “public gas suppliers” there shall be substituted the words “ gas suppliers ”.

Information to be given to customers about overall performance

38

• (1) In subsection (1) of section 33D of the 1986 Act (information to be given to customers about overall performance), for the words “public gas supplier” there shall be substituted the words “ gas supplier ”.

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

(3) Where the standards of performance mentioned in subsection (1) above relate to the provision of gas supply services to customers of a particular class or description, the reference in that subsection to the supplier’s customers shall be construed as a reference to such of his customers as are of that class or description.

Procedures for dealing with complaints

39

• (1) In subsection (1) of section 33E of the 1986 Act (procedures for dealing with complaints)—

• (a) for the words “public gas supplier” there shall be substituted the words “ gas supplier who is authorised to supply gas to domestic customers and whose licence incorporates the standard conditions ”; and

• (b) for the words “tariff customers or potential tariff customers” there shall be substituted the words “ domestic customers or potential domestic customers ”.

• (2) In subsections (2), (3), (4) and (6) of that section, for the words “public gas supplier”, in each place where they occur, there shall be substituted the words “ gas supplier ”.

General functions of Director

40

• (1) In subsection (1) of section 34 of the 1986 Act (general functions of Director), for the words “activities connected with the supply of gas through pipes” there shall be substituted the following paragraphs—

(a) such activities as are mentioned in section 5(1) above; and (b) activities ancillary to such activities (including in particular the storage of gas, the provision and reading of meters and the provision of pre-payment facilities).

• (2) In subsection (2) of that section, for the words “the supply of gas through pipes, and the persons providing such supplies” there shall be substituted the following paragraphs—

(a) the carrying on of such activities as are mentioned in subsection (1) above; and (b) the persons by whom such activities are carried on,

.

• (3) In subsection (4) of that section, after the words “function of the Director” there shall be inserted the words “ or the Secretary of State. ”

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

(5) The Director shall have power to make agreements with the Health and Safety Commission for the Director to perform on behalf of that Commission or the Health and Safety Executive (with or without payment) any of the functions of that Commission or, as the case may be, that Executive.

Publication of information and advice

41

In subsection (1) of section 35 of the 1986 Act (publication of information and advice), for the words “tariff customers and potential tariff customers of public gas suppliers” there shall be substituted the words “ customers and potential customers of gas suppliers ”.

Keeping of register

42

• (1) In subsection (1) of section 36 of the 1986 Act (keeping of register)—

• (a) for the words “section 6 above” there shall be substituted the words “ paragraph 5 of Schedule 2A to this Act ”; and

• (b) for the words “authorisations under section 7 or 8” there shall be substituted the words “ licences under section 7 or 7A ”.

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

• (a) for the words “section 6 above” there shall be substituted the words “ paragraph 5 of Schedule 2A to this Act ”;

• (b) after the words “particular class” there shall be inserted the words “ and every direction under subsection (5) of that section ”;

• (c) for the words “authorisation under section 7 or 8” there shall be substituted the words “ licence under section 7 or 7A ”; and

• (d) for the words “such an authorisation” there shall be substituted the words “ such a licence ”.

Functions with respect to competition

43

After section 36 of the 1986 Act there shall be inserted the following section—

(36A) (1) If and to the extent that he is requested by the Director General of Fair Trading to do so, it shall be the duty of the Director to exercise the functions of that Director under Part III of the Fair Trading Act 1973 (“the 1973 Act”) so far as relating to courses of conduct which are or may be detrimental to the interests of consumers of gas conveyed through pipes, whether those interests are economic or interests in respect of health, safety or other matters; and references in that Part to that Director shall be construed accordingly. (2) There are hereby transferred to the Director (so as to be exercisable concurrently with the Director General of Fair Trading)— (a) the functions of that Director under sections 44 and 45 of the 1973 Act; (b) the functions of that Director under sections 50, 52, 53, 86 and 88 of that Act; and (c) the functions of that Director under sections 56A to 56G of that Act, so far as relating to monopoly situations which exist or may exist in relation to commercial activities connected with the carrying on of activities to which this subsection applies; and references in Part IV and sections 86, 88 and 133 of that Act to that Director shall be construed accordingly. (3) There are hereby transferred to the Director (so as to be exercisable concurrently with the Director General of Fair Trading) the functions of that Director under sections 2 to 10 and 16 of the Competition Act 1980 (“the 1980 Act”) so far as relating to courses of conduct which have or are intended to have or are likely to have the effect of restricting, distorting, or preventing competition in connection with the carrying on of activities to which this subsection applies; and references in those sections and in section 19 of that Act to that Director shall be construed accordingly. (4) Subsections (2) and (3) above apply to— (a) such activities as are mentioned in section 5(1) above; and (b) activities ancillary to such activities as are so mentioned (including in particular the storage of gas, the provision and reading of meters and the provision of pre-payment facilities). (5) Before either Director first exercises in relation to any matter functions transferred by any of the following provisions, namely— (a) paragraph (a) of subsection (2) above; (b) paragraph (b) of that subsection; (c) paragraph (c) of that subsection; and (d) subsection (3) above, he shall consult the other Director; and neither Director shall exercise in relation to any matter functions transferred by any of those provisions if functions transferred by that provision have been exercised in relation to that matter by the other Director. (6) It shall be the duty of the Director, for the purpose of assisting the Monopolies Commission in carrying out an investigation on a reference made to them by the Director by virtue of subsection (2) or (3) above, to give to the Commission— (a) any information which is in his possession and which relates to matters falling within the scope of the investigation and— (i) is requested by the Commission for that purpose; or (ii) is information which in his opinion it would be appropriate for that purpose to give to the Commission without any such request; and (b) any other assistance which the Commission may require and which it is within his power to give, in relation to any such matters, and the Commission shall, for the purposes of carrying out any such investigation, take into account any information given to them for that purpose under this subsection. (7) If any question arises as to whether subsection (2) or (3) above applies to any particular case, that question shall be referred to and determined by the Secretary of State; and no objection shall be taken to anything done under— (a) Part IV or section 86 or 88 of the 1973 Act; or (b) sections 2 to 10 of the 1980 Act, by or in relation to the Director on the ground that it should have been done by or in relation to the Director General of Fair Trading. (8) Section 93B of the 1973 Act (offences of supplying false or misleading information to the Secretary of State, the Director General of Fair Trading or the Monopolies Commission in connection with their functions under Parts IV, V, VI or VIII of the 1973 Act or under the 1980 Act) shall have effect, so far as relating to functions exercisable by the Director by virtue of subsection (2) or (3) above, as if the reference in subsection (1)(a) of that section to the Director of Fair Trading included a reference to the Director. (9) Expressions used in this section which are also used in the 1973 Act or the 1980 Act have the same meanings as in that Act. (10) Any reference in this Part to functions of the Director under this Part, or to functions assigned to him by or under this Part, includes a reference to functions transferred to the Director by subsection (2) or (3) above.

Functions with respect to gas measuring equipment etc.

44

After section 36A of the 1986 Act there shall be inserted the following section—

(36B) (1) If and to the extent that the Secretary of State so directs, the functions of the Secretary of State under section 6 of the Weights and Measures Act 1985 (testing of standards and equipment) so far as relating to— (a) any article used or proposed to be used as a standard of a unit of measurement in relation to gas; (b) any measuring equipment, or other metrological equipment, for use in relation to gas; or (c) any article for use in connection with any such equipment, shall be exercisable by the Director concurrently with the Secretary of State; and references in that section to the Secretary of State shall be construed accordingly. (2) Any sums received by the Director by virtue of this section shall be paid into the Consolidated Fund.

Maximum prices for reselling gas

45

For section 37 of the 1986 Act there shall be substituted the following section—

(37) (1) The Director shall from time to time direct that the maximum prices at which gas supplied by gas suppliers may be resold— (a) shall be such as may be specified in the direction; or (b) shall be calculated by such method and by reference to such matters as may be so specified, and shall publish directions under this section in such manner as in his opinion will secure adequate publicity for them. (2) A direction under this section may— (a) require any person who resells gas supplied by a gas supplier to furnish the purchaser with such information as may be specified or described in the direction; and (b) provide that, in the event of his failing to do so, the maximum price applicable to the resale shall be such as may be specified in the direction, or shall be reduced by such amount or such percentage as may be so specified. (3) Different directions may be given under this section as respects different classes of cases, which may be defined by reference to areas or any other relevant circumstances. (4) If any person resells any gas supplied by a gas supplier at a price exceeding the maximum price determined by or under a direction under this section and applicable to the resale— (a) the amount of the excess; and (b) if the direction so provides, interest on that amount at a rate specified or described in the direction, shall be recoverable by the purchaser. (5) Nothing in this section shall apply in relation to the resale of gas for use in a motor vehicle which is constructed or adapted to use gas as fuel for its propulsion.

Power to require information etc.

46

• (1) In subsection (1) of section 38 of the 1986 Act (power to require information etc.)—

• (a) for the words “public gas supplier” there shall be substituted the words “ licence holder ”; and

• (b) the words from “but no person” to the end shall cease to have effect.

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

(1A) Where a licence has been or is to be revoked or suspended, or has expired or is about to expire by effluxion of time, and it appears to the Director, having regard to the duties imposed by section 4 or 4A above, to be requisite or expedient to do so for any purpose connected with the revocation, suspension or expiry, the Director may, with the consent of the Secretary of State, by notice signed by him— (a) require the licence holder to produce, at a time and place specified in the notice, to the Director, or to any person so specified, any records which are specified or described in the notice and are in the licence holder’s custody or under his control; or (b) require the licence holder to furnish to the Director, or to any person specified in the notice, such information as may be specified or described in the notice, and specify the time, the manner and the form in which any such information is to be furnished. (1B) No person shall be compelled for any such purpose as is mentioned in subsection (1) or (1A) above to produce any documents or records which he could not be compelled to produce in civil proceedings before the court or, in complying with any requirement for the furnishing of information, to give any information which he could not be compelled to give in evidence in such proceedings.

• (3) In subsections (2) and (4) of that section, after the words “subsection (1)” there shall be inserted the words “ or (1A) ”.

Duty to consider representations and give reasons

47

After section 38 of the 1986 Act there shall be inserted the following section—

(38A) (1) The Secretary of State may by order exercise any one or more of the powers conferred by subsections (2) to (4) below. (2) This subsection confers power to provide that, before the Director makes a specified decision in relation to a licence holder, the Director— (a) shall give to the licence holder a written notice stating— (i) that he is considering making the decision and the reasons why he is considering doing so; and (ii) that the licence holder may, within a period specified in the notice, make written representations to him or, if the licence holder so requests, make oral representations to a person appointed by him for the purpose; and (b) shall consider any representations which are duly made and not withdrawn. (3) This subsection confers power to provide that, where the Director makes a specified decision in relation to a licence holder, the Director shall as soon as practicable give to the licence holder a written notice explaining why it appeared to him to be appropriate to make the decision. (4) This subsection confers power to provide that, where a specified decision made or proposed to be made in relation to a licence holder will or may materially affect any specified person, any provision made by virtue of subsection (2) or (3) above shall, with any specified modifications, apply in relation to that person. (5) Nothing in any order made under this section shall require the Director to disclose any information the disclosure of which he considers would or might seriously and prejudicially affect the interests of a particular individual or body of persons, whether corporate or unincorporate. (6) An order under this section— (a) may make different provision in relation to different cases or different circumstances; and (b) shall be made by statutory instrument which shall be subject to annulment in pursuance of a resolution of either House of Parliament. (7) In this section— - “decision” means any decision under this Part, or under a condition of a licence, other than a decision to make a provisional order under section 28 above; - “specified”, in relation to an order under this section, means specified in the order or of a description so specified; and references to a licence holder include references to an applicant for a licence.

Annual and other reports

48

After subsection (2) of section 39 of the 1986 Act (annual and other reports) there shall be inserted the following subsection—

(2A) Every such report shall also include— (a) a general statement as to the extent to which, during the year to which it relates, there has been effective competition in the carrying on of activities the carrying on of which is required to be licensed under section 7A above; and (b) a general survey of developments during that year in respect of such competition.

General duty of Council to advise Director

49

In section 40 of the 1986 Act (general duty of Council to advise Director), the words “which relates to tariff customers and” shall cease to have effect.

General restrictions on disclosure of information

50

• (1) After subsection (1) of section 42 of the 1986 Act (general restrictions on disclosure of information) there shall be inserted the following subsections—

(1A) Subsection (1) above does not apply to any disclosure of information if— (a) the disclosure is required by a notice under subsection (1) or (1A) of section 38 above; (b) the information has been obtained in pursuance of a notice under subsection (1A) of that section; or (c) the disclosure is made by one licence holder to another and is required either by a condition of the disclosing licence holder’s licence, or by the other licence holder for purposes connected with the carrying on of relevant activities. (1B) In subsection (1A) above “relevant activities”, in relation to a licence holder, means— (a) activities which he is authorised by his licence to carry on; and (b) in the case of a public gas transporter, such activities as are mentioned in section 7(1)(b) and (c) above.

• (2) After subsection (3) of that section there shall be inserted the following subsection—

(3A) The Secretary of State may by order provide that any of subsections (1A) to (3) above shall have effect subject to such modifications as are specified in the order.

Making of false statements etc.

51

After subsection (1) of section 43 of the 1986 Act (making of false statements etc.) there shall be inserted the following subsection—

(1A) Any person who with intent to deceive— (a) impersonates an officer of a public gas transporter, gas supplier or gas shipper for the purpose of obtaining entry to any premises; or (b) for that purpose makes any statement or does any act calculated falsely to suggest that he is an officer, or an authorised officer, of such a transporter, supplier or shipper, shall be guilty of an offence and liable on summary conviction to a fine not exceeding level 4 on the standard scale.

Service of notices etc.

52

• (1) In subsection (1) of section 46 of the 1986 Act (service of notices etc.), the words “Subject to subsection (2) below” shall cease to have effect.

• (2) For subsections (2) and (3) of that section there shall be substituted the following subsections—

(2) Without prejudice to subsection (1) above, where this subsection applies in relation to a public gas transporter or gas supplier, any notice to be given to or served on the transporter or supplier under— (a) any condition of his licence; (b) any provision of Schedule 2B to this Act; or (c) in the case of a transporter, section 10 above, may be given or served by delivering it at, or sending it in a prepaid letter to, an appropriate office of the transporter or supplier. (3) Subsection (2) above applies in relation to a public gas transporter if he divides his authorised area into such areas as he thinks fit and— (a) in the case of each area, fixes offices of his which are to be appropriate offices in relation to notices relating to matters arising in that area; and (b) publishes in each area, in such manner as he considers adequate, the addresses of the offices fixed by him for that area. (4) Subsection (2) above applies in relation to a gas supplier if he divides the premises specified in his licence into such areas as he thinks fit and— (a) in the case of each area, fixes offices of his which are to be appropriate offices in relation to notices relating to matters arising in that area; (b) publishes in each area, in such manner as he considers adequate, the addresses of the offices fixed by him for that area; and (c) endorses on every demand note for gas charges payable to him the addresses of the offices fixed for the area in question. (5) In this section references to premises specified in a licence include references to premises of a description, or situated in an area, so specified.

Provisions as to regulations

53

• (1) In subsection (3) of section 47 of the 1986 Act (provisions as to regulations)—

• (a) for paragraph (aa) there shall be substituted the following paragraph—

(aa) provide for anything falling to be determined under the regulations to be determined— (i) by the Director or by such other person as may be prescribed by the regulations; and (ii) in accordance with such procedure and by reference to such matters and to the opinion of such persons as may be so prescribed;

and

• (b) in paragraph (b), after the words “the Secretary of State” there shall be inserted the words “ or, as the case may be, the Director ”.

• (2) In subsection (5) of that section, after the words “the Secretary of State” there shall be inserted the words “ , the Director ”.

• (3) For subsection (7) of that section there shall be substituted the following subsection—

(7) Any power to make regulations conferred by this Part on the Secretary of State or the Director shall be exercisable by statutory instrument which shall be subject to annulment in pursuance of a resolution of either House of Parliament; and the Statutory Instruments Act 1946 shall apply to any such power so conferred on the Director as if he were a Minister of the Crown.

Interpretation of Part I and savings

54

• (1) In subsection (1) of section 48 of the 1986 Act (interpretation of Part I and savings)—

• (a) in the definition of “authorised area”, for the word “supplier” there shall be substituted the word “ transporter ”;

• (b) in the definition of “distribution main”, for the word “supplier”, in each place where it occurs, there shall be substituted the word “ transporter ”;

• (c) after that definition there shall be inserted the following definition—

• “domestic customer” has the meaning given by section 15A(10) above;

;

• (d) after the definition of “gas fittings” there shall be inserted the following definition—

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

;

• (e) after the definition of “kilowatt hour” there shall be inserted the following definitions—

“licence” and “licence holder” have the meanings given by section 4(5) above;

;

• (f) after the definition of “notice” there shall be inserted the following definitions—

“officer”, in relation to any person, includes any servant or agent of that person, and any officer or servant of such an agent; “owner”, in relation to any premises or other property, includes a lessee, and cognate expressions shall be construed accordingly;

• (g) in the definition of “prescribed”, for the words “(except in section 33A above)” there shall be substituted the words “ made, unless the context otherwise requires, by the Secretary of State ”;

• (h) for the definition of “public gas supplier” there shall be substituted the following definition—

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

;

• (i) the definition of “regulations” shall cease to have effect;

• (j) immediately before the definition of “subsidiary” there shall be inserted the following definitions—

“service pipe” means a pipe, other than a distribution main of a public gas transporter, which is used for the purpose of conveying gas from such a main to any premises, and includes part of any such pipe; “storage”, in relation to gas, means storage in, or in a facility which is connected (directly or indirectly) to, a pipe-line system operated by a public gas transporter;

and

• (k) the definition of “tariff customer” shall cease to have effect.

• (2) After subsection (1) of that section there shall be inserted the following subsection—

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

• (3) In subsection (2) of that section, for paragraphs (a) and (b) there shall be substituted the words “ to the supply of gas (directly or indirectly) to a public gas transporter, gas supplier or gas shipper ”.

• (4) For subsection (3) of that section there shall be substituted the following subsections—

(2A) In relation to any time after 31st December 1999— (a) references in this Part to 2,500, 75,000 and 2 million therms shall be construed as references to 73,200, 2,196,000 and 58 million kilowatt hours respectively; and (b) other references in this Part to therms, and references in this Part to therms or kilowatt hours, shall be construed as references to kilowatt hours. (2B) A person is of pensionable age for the purposes of this Part if— (a) he has attained pensionable age (within the meaning given by the rules in paragraph 1 of Schedule 4 to the Pensions Act 1995); or (b) in the case of a man born before 6th April 1955, he is the same age as a woman who has attained pensionable age (within the meaning so given). (3) Nothing in this Part relating to the modification of a licence shall authorise the inclusion in a licence of any condition other than one such as is mentioned in section 7B above or, in the case of a modification under section 27 above, as would be so mentioned if the references to the Director in subsection (4)(a), (b) and (d) of section 7B were references to the Secretary of State.

The Director General of Gas Supply

55

In paragraph 10 of Schedule 1 to the 1986 Act (the Director General of Gas Supply), after the words “the Director”, in the first place where they occur, there shall be inserted the words “ (other than the making of a statutory instrument) ”.

Acquisition of land by public gas transporters

56

In Schedule 3 to the 1986 Act (acquisition of land by public gas suppliers)—

• (a) for the words “public gas supplier”, in each place where they occur, there shall be substituted the words “ public gas transporter ”;

• (b) for the words “public gas supplier’s”, in each place where they occur, there shall be substituted the words “ public gas transporter’s ”; and

• (c) for the words “the supplier”, in each place where they occur, there shall be substituted the words “ the transporter ”.

Power of public gas transporters to break up streets, bridges etc.

57

• (1) In Schedule 4 to the 1986 Act (power of public gas suppliers to break up streets, bridges etc.)—

• (a) for the words “public gas supplier”, in each place where they occur, there shall be substituted the words “ public gas transporter ”; and

• (b) for the words “the supplier”, in each place where they occur, there shall be substituted the words “ the transporter ”.

• (2) In sub-paragraph (1) of paragraph 1 of that Schedule, for the words from “placing in” to the end there shall be substituted the following paragraphs—

(a) placing pipes, conduits, service pipes, cables, sewers and other works, and pressure governors, ventilators and other apparatus, in or under any street; and (b) from time to time repairing, altering or removing any such works or apparatus placed in or under any street (whether by him or by any other person).

• (3) After sub-paragraph (3) of that paragraph there shall be inserted the following sub-paragraphs—

(4) The Secretary of State shall by regulations provide that, in such cases and to such extent as may be provided by the regulations, a public gas transporter shall pay, by way of compensation for any loss sustained by any person in consequence of the exercise of those powers, such sum as may be determined in accordance with the regulations. (5) No regulations may be made under sub-paragraph (4) above which amend, or re-enact with modifications, regulations previously made under that sub-paragraph.

• (4) In paragraph 3(2) of that Schedule, for the words “giving a supply of” there shall be substituted the word “ conveying ”.

SCHEDULE 4

Interpretation

1

In this Schedule “public gas transporter” has the same meaning as in Part I of the 1986 Act.

Enactments relating to statutory undertakers etc.

2

• (1) A public gas transporter shall be deemed to be a statutory undertaker and his undertaking a statutory undertaking for the purposes of the following enactments, namely—

• (i) the Public Health Act 1925;

• (ii) the Public Health Act 1936;

• (iii) the Acquisition of Land (Authorisation Procedure) (Scotland) Act 1947;

• (iv) section 4 of the Requisitioned Land and War Works Act 1948;

• (v) the National Parks and Access to the Countryside Act 1949;

• (vi) the Reserve and Auxiliary Forces (Protection of Civil Interests) Act 1951;

• (vii) the Landlord and Tenant Act 1954;

• (viii) the Opencast Coal Act 1958;

• (ix) the Flood Prevention (Scotland) Act 1961;

• (x) section 17(10) of the Public Health Act 1961;

• (xi) the Pipe-lines Act 1962;

• (xii) Schedule 3 to the Harbours Act 1964;

• (xiii) section 40 of the Forestry Act 1967;

• (xiv) section 50 of the Agriculture Act 1967;

• (xv) sections 38 and 66 of the Countryside (Scotland) Act 1967;

• (xvi) the New Towns (Scotland) Act 1968;

• (xvii) section 11 of and paragraph 6 of Schedule 2 to the Countryside Act 1968;

• (xviii) section 22 of the Sewerage (Scotland) Act 1968;

• (xix) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (xx) section 51 of the Land Compensation Act 1973;

• (xxi) section 47 of the Land Compensation (Scotland) Act 1973;

• (xxii) section 73 of the Control of Pollution Act 1974;

• (xxiii) the Welsh Development Agency Act 1975;

• (xxiv) sections 15(3) and 26 of the Local Government (Miscellaneous Provisions) Act 1976;

• (xxv) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (xxvi) section 9(3) of the Inner Urban Areas Act 1978;

• (xxvii) the Ancient Monuments and Archaeological Areas Act 1979;

• (xxviii) Part XVI and section 120 of the Local Government, Planning and Land Act 1980;

• (xxix) the Highways Act 1980;

• (xxx) the New Towns Act 1981;

• (xxxi) the Acquisition of Land Act 1981;

• (xxxii) the Civil Aviation Act 1982;

• (xxxiii) section 30 of the Local Government (Miscellaneous Provisions) Act 1982;

• (xxxiv) the Roads (Scotland) Act 1984;

• (xxxv) the Building Act 1984;

• (xxxvi) section 296 of the Housing Act 1985;

• (xxxvii) section 21 of the Road Traffic Act 1988.

• (xxxviii) section 9 of the Enterprise and New Towns (Scotland) Act 1990;

• (xxxix) section 7(5) of the Natural Heritage (Scotland) Act 1991.

• (2) References to public gas suppliers in the following enactments shall have effect as references to a public gas transporter, namely—

• (a) section 17(1)(b) of the Requisitioned Land and War Works Act 1945;

• (b) the Local Government (Omnibus Shelters and Queue Barriers) (Scotland) Act 1958;

• (c) section 7A(4)(b)(ii) of the Mines (Working Facilities and Support) Act 1966;

• (d) section 109(2)(d) of the Transport Act 1968;

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

• (f) sections 73(11)(c) and 74(11)(b) of the Highways Act 1980;

• (g) section 48(6)(c) of the Civil Aviation Act 1982;

• (h) paragraph 3 of Schedule 5 to the Road Traffic Regulation Act 1984;

• (i) section 80(3)(b) of the Building Act 1984;

• (j) section 91 of the Planning (Listed Buildings and Conservation Areas) Act 1990;

• (k) section 39 of the Planning (Hazardous Substances) Act 1990;

• (l) section 52(1) of the Coal Mining Subsidence Act 1991;

• (m) section 209(3)(b) of and paragraph 1(5)(e) of Schedule 13 to the Water Industry Act 1991;

• (n) section 208(3)(b) of and paragraph 1(4)(e) of Schedule 22 to the Water Resources Act 1991;

• (o) paragraph 1(1)(e) of Schedule 6 to the Land Drainage Act 1991.

• (3) The reference in Schedule 4 to the Public Health Act 1961 to gas undertakers shall have effect as a reference to a public gas transporter.

• (4) References in the Landlord and Tenant Act 1927 to a statutory company shall be deemed to include references to a public gas transporter.

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

• (6) References to public utility undertakers in the Highways Act 1980 shall be deemed to include references to a public gas transporter.

• (7) Part 10 of Schedule 3A to the Communications Act 2003 (the electronic communications code) shall apply to a public gas transporter for the purposes of any works carried out by him.

• (8) The reference in section 82(4) of the Building Act 1984 (provisions with respect to demolition orders) to a person authorised by an enactment to carry on an undertaking for the supply of gas shall be construed as a reference to a public gas transporter.

• (9) References to public undertakers in section 125(7) of, and paragraphs 9 and 10 of Schedule 8 to, the Housing (Scotland) Act 1987 shall be deemed to include references to a public gas transporter.

• (10) In the following enactments, namely—

• (a) section 39 of the Opencast Coal Act 1958;

• (b) paragraph 2 of Schedule 6 to the Gas Act 1965;

• (c) the New Towns (Scotland) Act 1968;

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

• (e) the Welsh Development Agency Act 1975;

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

• (g) the New Towns Act 1981;

• (h) section 9 of the Enterprise and New Towns (Scotland) Act 1990;

• (i) section 7(5) of the Natural Heritage (Scotland) Act 1991,

• “the appropriate Minister”, in relation to a public gas transporter, shall mean the Secretary of State for Trade and Industry.

• (11) In the following enactments, namely—

• (a) the Pipe-lines Act 1962;

• (b) Schedule 3 to the Harbours Act 1964;

• (c) section 121 of the Highways Act 1980; and

• (d) the Acquisition of Land Act 1981,

• “the appropriate Minister”, in relation to a public gas transporter, shall mean the Secretary of State.

Public Health Act 1936 (c. 49)

3

In section 229 of the Public Health Act 1936 (power of statutory undertakers to supply water, gas or electricity to baths etc. on favourable terms), the word “gas”, in both places where it occurs, shall cease to have effect.

Statistics of Trade Act 1947 (c. 39)

4

• (1) In relation to gas, subsection (5)(b) of section 9 of the Statistics of Trade Act 1947 (restriction on disclosure of information obtained under that Act) shall have effect as if the references to the total quantity or value of any articles produced, sold or delivered included a reference to each of the following, that is to say—

• (a) the total quantity or value of gas which is supplied in Great Britain;

• (b) the total quantity or value of gas which in Great Britain is supplied—

• (i) for the same purposes, or for different purposes but in similar quantities;

• (ii) to premises appearing to the Secretary of State to be of the same description; or

• (iii) on terms appearing to the Secretary of State to be similar as respects continuity of supply;

• (c) the total quantity of gas which in Great Britain is conveyed or shipped to premises for supply purposes, or is stored; and

• (d) the total quantity of gas which in Great Britain is conveyed or shipped to or from, or is stored in, facilities or pipe-line systems appearing to the Secretary of State to be of the same description.

• (2) If different areas of Great Britain are specified for any purposes of this paragraph by order made by the Secretary of State, this paragraph shall have effect for those purposes as if any reference to Great Britain included a reference to each of those areas.

• (3) An order under this paragraph shall be made by statutory instrument which shall be subject to annulment in pursuance of a resolution of either House of Parliament.

• (4) In this paragraph—

• “convey” means convey through pipes;

• “for supply purposes”, in relation to any conveyance or shipment of gas to any premises, means with a view to the gas being supplied to the premises, or being used in the premises by the holder of a licence under section 7A(2) of the 1986 Act;

• “gas” and “public gas transporter” have the same meanings as in Part I of the 1986 Act;

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

• “supply”, in relation to gas, means supply to premises to which the gas has been conveyed, other than supply (directly or indirectly) to a public gas transporter, gas supplier or gas shipper.

• (5) For the purposes of this paragraph—

• (a) gas is shipped if, in pursuance of arrangements made with a public gas transporter, it is introduced into, conveyed by means of or taken out of a pipe-line system operated by that transporter; and

• (b) any reference to the shipment of gas to any premises, or to or from any facilities or pipe-line systems, shall be construed accordingly.

Rights of Entry (Gas and Electricity Boards) Act 1954 (c. 21)

5

• (1) In subsection (2) of section 1 of the Rights of Entry (Gas and Electricity Boards) Act 1954 (restriction on exercise of rights of entry), for the words “public gas supplier” there shall be substituted the words “ gas operator ”.

• (2) In subsection (1) of section 2 of that Act—

• (a) in paragraph (a), for the words “public gas supplier” there shall be substituted the words “ gas operator ”;

• (b) in that paragraph, after the words “a supplier” there shall be inserted the words “ or operator ”; and

• (c) for the words “the supplier or his employee”, in both places where they occur, there shall be substituted the words “ the operator or supplier or any employee of the operator or supplier ”.

• (3) In paragraph (a) of subsection (3) of that section, for the words “public gas supplier” there shall be substituted the words “ gas operator ”.

• (4) In section 3 of that Act—

• (a) for the definition of “employee” there shall be substituted the following definition—

“employee” means— (a) in relation to a gas operator, an officer, servant or agent of the operator and any servant or officer of such an agent; and (b) in relation to an electricity supplier, an officer, servant or agent of the supplier;

and

• (b) for the definition of “public gas supplier” there shall be substituted the following definition—

“gas operator” means a public gas transporter, gas supplier or gas shipper within the meaning of Part I of the Gas Act 1986;

.

Pipe-lines Act 1962 (c. 58)

6

• (1) In section 58(1) of the Pipe-lines Act 1962 (exclusion of application of Act to pipe-lines of certain statutory bodies), for paragraph (a) there shall be substituted the following paragraph—

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

• (2) After that section there shall be inserted the following sections—

(58A) (1) Notwithstanding subsection (4) of section 58 of this Act, but subject to subsection (2) of this section, the references to a pipe-line in sections 27(1) and 31(1) of this Act (protection of pipe-lines imperilled by buildings, structures or deposits) shall include references to any pipe-line operated by a public gas transporter other than one laid in a street or a service pipe. (2) The application by virtue of subsection (1) of this section of sections 27(1) and 31(1) of this Act to a particular part of any pipe-line shall be dependent upon there having been previously deposited with every local authority in whose area the part lies by the public gas transporter a map (drawn to an appropriate scale) showing the route taken by the part. (3) A local authority holding a map relating to a pipe-line operated by a public gas transporter shall keep the map at their offices, and shall secure that it is open to inspection by any person at all reasonable times free of charge. (4) In this section— - “local authority” means— 1. in England, the council of a county, district or London borough, and the Common Council of the City of London; 2. in Wales, the council of a county or county borough; and 3. in Scotland, a council constituted under section 2 of the Local Government etc. (Scotland) Act 1994; - “public gas transporter” and “service pipe” have the same meanings as in Part I of the Gas Act 1986; - “street” has the same meaning as in Part III of the New Roads and Street Works Act 1991. (5) In relation to any time before 1st April 1996, the definition of “local authority” in subsection (4) of this section shall have effect as if— (a) in paragraph (b), for the words “county borough” there were substituted the word “district”; and (b) in paragraph (c), for the words “a council constituted under section 2 of the Local Government etc. (Scotland) Act 1994” there were substituted the words “an islands or district council”. (6) In its application to Scotland this paragraph shall have effect with the substitution for any reference to a street of a reference to a road within the meaning of Part IV of the New Roads and Street Works Act 1991. (58B) (1) In relation to the construction, by any person other than a public gas transporter, of a pipe to which this section applies— (a) references in sections 1 to 14 of this Act to a pipe-line shall be construed as not including references to such a pipe; and (b) references in those sections to pipe-line works shall be construed as not including references to works executed in connection with the construction of a such a pipe. (2) This section applies to any pipe— (a) by which any premises are proposed to be connected to a distribution main of a public gas transporter; and (b) by which gas is proposed to be conveyed to premises at a rate which is not expected to exceed 75,000 therms in any period of twelve months. (3) The Secretary of State may, after consulting the Director General of Gas Supply, by order amend subsection (2) above 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. (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) In this section “distribution main” and “public gas transporter” have the same meanings as in Part I of the Gas Act 1986. (6) In relation to any time after 31st December 1999, the reference in subsection (2) above to 75,000 therms shall be construed as a reference to 2,196,000 kilowatt hours. (7) This section is without prejudice to anything in section 58 of this Act.

Gas Act 1965 (c. 36)

7

• (1) In Part II of the Gas Act 1965 for the words “public gas supplier”, in each place where they occur, there shall be substituted the words “ public gas transporter ”.

• (2) In subsection (2) of section 32 of that Act, for the words “public gas supplier” there shall be substituted the words “public gas transporter” .

• (3) In paragraph 14(1) of Schedule 2 to that Act, for the words “public gas suppliers” there shall be substituted the words “ public gas transporters ”.

Local Government (Scotland) Act 1966 (c. 51)

8

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

Post Office Act 1969 (c. 48)

9

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

Health and Safety at Work etc. Act 1974 (c. 37)

10

• (1) Part I of the Health and Safety at Work etc. Act 1974 (“the 1974 Act”) shall have effect as if section 58A of the Pipe-lines Act 1962 and section 22A(1)(c) of and paragraphs 17, 20 and 21 of Schedule 2B to the 1986 Act—

• (a) were existing statutory provisions within the meaning of Part I of the 1974 Act; and

• (b) were specified in the third column of Schedule 1 to that Act.

• (2) Without prejudice to the generality of subsection (1) of section 15 of the 1974 Act (health and safety regulations), regulations under that section may repeal or modify any of the provisions mentioned in sub-paragraph (1) above.

• (3) Nothing in sub-paragraph (1) above shall affect the operation of section 18 of the 1974 Act (enforcement of relevant statutory provisions) in relation to any time before such day as the Secretary of State may by order made by statutory instrument appoint, and different days may be appointed for different purposes.

Energy Act 1976 (c. 76)

11

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

• (2) In subsection (2) of section 12 of that Act (disposal of gas by flaring, etc), for the words “except gas supplied by a public gas supplier” there shall be substituted the words “ except gas conveyed through pipes to premises by a public gas transporter ”.

Water (Scotland) Act 1980 (c. 45)

12

In paragraph (c) of the proviso to section 36 of Schedule 4 to the Water (Scotland) Act 1980 (provisions to be incorporated in orders relating to water undertakings), for the words—

• (a) “gas undertakers” there shall be substituted the words “ public gas transporter (within the meaning of Part I of the Gas Act 1986) ”; and

• (b) “those undertakers” there shall be substituted the words “ such public gas transporter ”.

Bankruptcy (Scotland) Act 1985 (c. 66)

13

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

Insolvency Act 1986 (c. 45)

14

• (1) For paragraph (a) of subsection (3) of section 233 of the Insolvency Act 1986 (supplies of gas, water, electricity etc.) there shall be substituted the following paragraph—

(a) a supply of gas by a gas supplier within the meaning of Part I of the Gas Act 1986;

.

• (2) Paragraph (a) of subsection (5) of that section shall cease to have effect.

• (3) For paragraph (a) of subsection (4) of section 372 of that Act (supplies of gas, water, electricity etc.) there shall be substituted the following paragraph—

(a) a supply of gas by a gas supplier within the meaning of Part I of the Gas Act 1986;

.

• (4) Paragraph (a) of subsection (5) of that section shall cease to have effect.

Consumer Protection Act 1987 (c. 43)

15

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

• (2) In paragraph (c) of subsection (7) of section 11 of that Act (safety regulations), for the words “section 6, 7 or 8” to the end there shall be substituted the following words “ section 7A of the Gas Act 1986 (licensing of gas suppliers and gas shippers) or paragraph 5 of Schedule 2A to that Act (supply to very large customers an exception to prohibition on unlicensed activities). ”

Road Traffic (Driver Licensing and Information Systems) Act 1989 (c. 22)

16

In paragraph 8 of Schedule 5 to the Road Traffic (Driver Licensing and Information Systems) Act 1989 (driver information systems: undertakers’ works)—

• (a) in the definition of “relevant undertaker”, for the words “public gas supplier” there shall be substituted the words “ public gas transporter ”; and

• (b) in the definition of “undertaker’s works”, for the words “supplying gas as a public gas supplier” there shall be substituted the words “ conveying gas as a public gas transporter ”.

Electricity Act 1989 (c. 29)

17

• (1) In paragraph 3 of Schedule 4 to the Electricity Act 1989 (other powers etc. of licence holders)—

• (a) in sub-paragraph (1)(b), for the words “under the control of a public gas supplier” there shall be substituted the words “ operated by a public gas transporter ”;

• (b) in sub-paragraph (2), for the words “public gas supplier” there shall be substituted the words “ public gas transporter ”.

• (2) In sub-paragraph (1)(a) of paragraph 4 of that Schedule, for the words “public gas supplier” there shall be substituted the words “ public gas transporter ”.

• (3) In paragraph 12 of that Schedule, for the words “public gas supplier” there shall be substituted the words “ public gas transporter ”.

Town and Country Planning Act 1990 (c. 8)

18

• (1) In section 252 of the Town and Country Planning Act 1990 (procedure for making orders)—

• (a) in paragraph (b) of subsection (2), for the words “public gas supplier” there shall be substituted the words “ public gas transporter ”;

• (b) in subsection (4), for the words “public gas supplier” there shall be substituted the words “ public gas transporter ”; and

• (c) in subsection (5), for the word “supplier” there shall be substituted the word “ transporter ”.

• (2) In subsection (3) of section 262 of that Act (meaning of “statutory undertakers”), for the words “public gas supplier” there shall be substituted the words “ public gas transporter ”.

• (3) In subsection (2) of section 265 of that Act (meaning of “the appropriate Minister”), for the words “public gas supplier” there shall be substituted the words “ public gas transporter ”.

• (4) In subsection (1) of section 336 of that Act (interpretation), for the words “public gas supplier” there shall be substituted the words “ public gas transporter ”.

Enterprise and New Towns (Scotland) Act 1990 (c. 35)

19

In section 9(5) of the Enterprise and New Towns (Scotland) Act 1990 (powers of entry: meanings of certain expressions), for the words “Schedule 7 to the Gas Act 1986” there shall be substituted the words “ Schedule 4 to the Gas Act 1995 ”.

Natural Heritage (Scotland) Act 1991 (c. 28)

20

In section 7 of the Natural Heritage (Scotland) Act 1991 (powers of entry)—

• (a) in subsection (5), the words from “(within” to the end shall cease to have effect; and

• (b) after subsection (5) there shall be inserted—

(5A) In subsection (5) above, “appropriate Minister” has the same meaning as in section 213(1) of the Town and Country Planning (Scotland) Act 1972; but this subsection is subject to paragraph 2(10) of Schedule 4 to the Gas Act 1995.

.

Central Rating Lists Regulations 1994 (S.I. 1994/3121)

21

In Part 3 of the Schedule to the Central Rating Lists Regulations 1994, for the words “public gas supplier”, in both places where they occur, there shall be substituted the words “ public gas transporter ”.

SCHEDULE 5

Part I — Public gas suppliers’ authorisations

Preliminary

1

• (1) The provisions of this Part of this Schedule have effect as respects each person who is a public gas supplier immediately before the appointed day (in this Part of this Schedule referred to as “the public gas supplier”) for the purpose of securing that his authorisation under section 7 of the 1986 Act has effect on and after that day as if it were—

• (a) a licence under that section (licensing of public gas transporters) granted to one of the persons mentioned in sub-paragraph (2) below;

• (b) a licence under subsection (1) of section 7A of that Act (licensing of gas suppliers) granted to the other of those persons; and

• (c) a licence under subsection (2) of that section (licensing of gas shippers) granted to the person mentioned in paragraph (b) above.

• (2) The persons referred to in sub-paragraph (1) above are—

• (a) the public gas supplier; and

• (b) such one of his associates as may be nominated by him for the purposes of this sub-paragraph (in this Part of this Schedule referred to as the nominated associate).

• (3) For the purposes of this paragraph a company is an associate of the public gas supplier if—

• (a) the company is registered under the Companies Act 1985 and is limited by shares; and

• (b) either the company is wholly owned by the supplier or the supplier is wholly owned by the company.

Duty of public gas supplier to nominate associates and make transfer scheme

2

• (1) Before such date as the Secretary of State may direct, the public gas supplier shall—

• (a) make such nomination as he thinks fit for the purposes of sub-paragraph (2) of paragraph 1 above; and

• (b) make a scheme for the division of all his property, rights and liabilities between the persons mentioned in that sub-paragraph.

• (2) Such a scheme may—

• (a) define the property, rights and liabilities to be allocated to the nominated associate—

• (i) by specifying or describing the property, rights and liabilities in question;

• (ii) by referring to all (or all but as much as may be excepted) of the property, rights and liabilities comprised in a specified part of the public gas supplier’s undertaking; or

• (iii) partly in the one way and partly in the other;

• (b) provide that any rights or liabilities specified or described in the scheme shall be enforceable either by or against either, or by or against both, of the persons mentioned in paragraph 1(2) above;

• (c) impose on either of those persons an obligation to enter into such written agreements with, or execute such other instruments in favour of, the other of those persons as may be specified in the scheme; and

• (d) make such supplemental, incidental and consequential provision as the supplier considers appropriate.

• (3) Without prejudice to the generality of sub-paragraph (2)(d) above, such a scheme may, in relation to transfers or transactions effected in pursuance of the scheme, make provision, either generally or for specified purposes—

• (a) for the transfers or transactions to be regarded as taking place in a specified order; and

• (b) for the nominated associate to be treated as the same person in law as the public gas supplier.

• (4) An obligation imposed by a provision included in such a scheme by virtue of sub-paragraph (2)(c) above shall be enforceable by civil proceedings by the other person for an injunction or for interdict or for any other appropriate relief or remedy.

• (5) A transaction of any description which is effected in pursuance of such a provision as is mentioned in sub-paragraph (4) above—

• (a) shall have effect subject to the provisions of any enactment which provides for transactions of that description to be registered in any statutory register; but

• (b) subject to that, shall be binding on all other persons, notwithstanding that it would, apart from this sub-paragraph, have required the consent or concurrence of any other person.

• (6) Where a lease of any land is granted in pursuance of such a provision as is mentioned in sub-paragraph (4) above, any right of pre-emption or other like right affecting that land—

• (a) shall not become exercisable by reason of the grant of the lease; but

• (b) shall have effect as if the lessee were the same person in law as the lessor.

Functions of Secretary of State in relation to nominations and transfer scheme

3

• (1) If the public gas supplier fails, before the date specified in the Secretary of State’s direction under paragraph 2 above, to make a nomination for the purposes of sub-paragraph (2) of paragraph 1 above, the Secretary of State may himself make a nomination for the purposes of that sub-paragraph.

• (2) A scheme under paragraph 2 above shall not take effect unless it is approved by the Secretary of State; and the Secretary of State may if he thinks fit, before approving such a scheme, make such modifications of the scheme as he considers appropriate for the purpose of securing that the scheme makes such provision, and only such provision, as he considers requisite or expedient for the purposes of this Part of this Schedule.

• (3) If, in relation to such a scheme—

• (a) the public gas supplier fails, before the date specified in the Secretary of State’s direction under paragraph 2 above, to submit the scheme for the approval of the Secretary of State; or

• (b) the Secretary of State decides not to approve the scheme that has been submitted to him by the supplier because (even with modifications) it would not make such provision, and only such provision, as he considers requisite or expedient for the purposes of this Part of this Schedule,

the Secretary of State may himself make the scheme.

Duty of Secretary of State to make licensing scheme

4

• (1) As soon as practicable after the date specified in the Secretary of State’s direction under paragraph 2 above and in any event before the appointed day, the Secretary of State shall make a scheme providing for the public gas supplier’s authorisation under section 7 of the 1986 Act to have effect as mentioned in paragraph 1(1) above.

• (2) In making a scheme under this paragraph, the Secretary of State shall have regard to the provisions of the scheme made under paragraph 2 above.

• (3) Subject to sub-paragraph (4) below, a scheme under this paragraph shall provide that each condition which by virtue of section 8(2) of this Act is a standard condition for the purposes of—

• (a) licences under section 7 of the 1986 Act;

• (b) licences under subsection (1) of section 7A of that Act; or

• (c) licences under subsection (2) of that section,

shall be incorporated in the licence treated as granted under that section or, as the case may be, the licence treated as granted under that subsection.

• (4) Such a scheme may provide that each licence which is treated as so granted (including the terms and conditions which are derived from the authorisation and the standard conditions which are incorporated by virtue of sub-paragraph (3) above) shall have effect with—

• (a) such incidental, consequential and supplementary amendments as appear to the Secretary of State to be necessary or expedient;

• (b) such amendments as the Secretary of State thinks fit for varying the period of notice required for the revocation of the licence in accordance with any term contained in it; and

• (c) such other amendments (if any) as may be agreed between the Secretary of State and the public gas supplier;

and such a scheme may also make such transitional provision as appears to the Secretary of State to be necessary or expedient.