Gas Act 1986

[F1 4AA The principal objective and general duties of the Secretary of State and the Authority. E+W+S

(1) The principal objective of the Secretary of State and the Gas and Electricity Markets Authority (in this Act referred to as “the Authority”) in carrying out their respective functions under this Part is to protect the interests of [F2 existing and future] consumers in relation to gas conveyed through pipes F3 ....

[F4 (1A) Those interests of existing and future consumers are their interests taken as a whole, including—

(a) their interests in [F5 the Secretary of State’s compliance with the duties in sections 1 and 4(1)(b) of the Climate Change Act 2008 (net zero target for 2050 and five-year carbon budgets)]; F6 ...

(b) their interests in the security of the supply of gas to them [F7 ; and

(c) their interests in the fulfilment by the Authority, when carrying out its [F8 designated regulatory functions], of the [F9 designated regulatory objectives].]

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

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

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

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

(2) [F10 In performing the duties under subsections (1B) and (1C), the Secretary of State or the Authority shall have regard to]—

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

(b) the need to secure that licence holders are able to finance the activities which are the subject of obligations imposed by or under this Part [F11 , the Utilities Act 2000 [F12 , Part 5 of the Energy Act 2008 or section 4, Part 2, [F13 , sections 26 to 29 of the Energy Act 2010, or sections 245 to 247 of the Energy Act 2023]]] [F14 ; and

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

(3) In performing [F15 the duties under subsections (1B), (1C) and (2)], the Secretary of State or the Authority shall have regard to the interests of—

(a) individuals who are disabled or chronically sick;

(b) individuals of pensionable age;

(c) individuals with low incomes; and

(d) individuals residing in rural areas;

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

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

(a) the interests of consumers in relation to electricity conveyed by distribution systems [F16 or transmission systems] (within the meaning of the M1 Electricity Act 1989); and

(b) any interests of consumers in relation to—

[F17 (i) communications services and electronic communications apparatus, or]

(ii) water services or sewerage services (within the meaning of the M2 Water Industry Act 1991),

which are affected by the carrying out of that function.

(5) Subject to [F18 subsections (1B) and] (2) [F19 and to section 132(2) of the Energy Act 2013 (duty to carry out functions in manner best calculated to further delivery of policy outcomes)], the Secretary of State and the Authority shall carry out their respective functions under this Part in the manner which he or it considers is best calculated—

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

(b) to protect the public from dangers arising from the conveyance of gas through pipes or from the use of gas conveyed through pipes [F20 or the provision of a smart meter communication service];

F21 (ba) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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

[F22 and F23 ... shall] have regard, in carrying out those functions, to the effect on the environment of activities connected with the conveyance of gas through pipes [F24 or the provision of a smart meter communication service].

[F25 (5A) In carrying out their respective functions under this Part in accordance with the preceding provisions of this section the Secretary of State and the Authority must each have regard to—

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

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

[F26 (5B) In subsection (1A)—

• [F27 “the designated regulatory objectives” means the objectives set out in Article 40(c) to (h) of the Gas Directive but read with the following modifications—

  (a)

  in Article 40(c), for the words from “between” to the end substitute “ , including enabling the development of appropriate cross-border transmission capacities to meet demand; ”,

  (b)

  in Article 40(d), omit “, in line with general energy policy objectives,”,

  (c)

  in Article 40(f), omit “and foster market integration”, and

  (d)

  in Article 40(g), for “their national market” substitute “the energy market in Great Britain”;]

• F28 ...

• F28 ...

• F28 ...]

(6) In [F29 subsections [F30 (1C),] (3) and (4) references to consumers include] both existing and future consumers.

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

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

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

• “licence” means a licence under section 7 [F31 , 7ZA] [F32 , 7A or 7AB] and “licence holder” shall be construed accordingly.]

Textual Amendments

F1 S. 4AA substituted (20.12.2000) for s. 4 by 2000 c. 27, s. 9; S.I. 2000/3343, art. 2, Sch. (subject to transitional provisions in arts. 3-15)

F2 Words in s. 4AA(1) inserted (26.1.2009) by Energy Act 2008 (c. 32), ss. 83(1)(a), 110(2); S.I. 2009/45, art. 2(d)(i)

F3 Words in s. 4AA(1) omitted (8.6.2010) by virtue of Energy Act 2010 (c. 27), ss. 16(2), 38(3)

F4 Ss. 4AA(1A)-(1C) inserted (8.6.2010) by Energy Act 2010 (c. 27), ss. 16(3), 38(3)

F5 Words in s. 4AA(1A)(a) substituted (26.12.2023) by Energy Act 2023 (c. 52), ss. 202(2), 334(3)(f)

F6 Word in s. 4AA(1A) omitted (10.11.2011) by virtue of The Electricity and Gas (Internal Markets) Regulations 2011 (S.I. 2011/2704), regs. 1(1), 26(1)(a)

F7 S. 4AA(1A)(c) and word inserted (10.11.2011) by The Electricity and Gas (Internal Markets) Regulations 2011 (S.I. 2011/2704), regs. 1(1), 26(1)(b)

F8 Words in s. 4AA(1A)(c) substituted (31.12.2020) by The Electricity and Gas etc. (Amendment etc.) (EU Exit) Regulations 2019 (S.I. 2019/530), regs. 1(1), 8(2)(a); 2020 c. 1, Sch. 5 para. 1(1)

F9 Words in s. 4AA(1A)(c) substituted (31.12.2020) by The Electricity and Gas etc. (Amendment etc.) (EU Exit) Regulations 2019 (S.I. 2019/530), regs. 1(1), 8(2)(b); 2020 c. 1, Sch. 5 para. 1(1)

F10 Words in s. 4AA(2) substituted (8.6.2010) by Energy Act 2010 (c. 27), ss. 16(4)(a), 38(3)

F11 Words in s. 4AA(2)(b) substituted (26.11.2008) by Energy Act 2008 (c. 32), ss. 102(3), 110(2)

F12 Words in s. 4AA(2)(b) substituted (8.6.2010) by Energy Act 2010 (c. 27), ss. 16(4)(b), 38(3)

F13 Words in s. 4AA(2)(b) substituted (11.1.2024) by Energy Act 2023 (c. 52), ss. 248(3), 334(1); S.I. 2024/32, reg. 2(b)(iii)

F14 S. 4AA(2)(c) and preceding word inserted (26.1.2009) by Energy Act 2008 (c. 32), ss. 83(1)(b), 110(2); S.I. 2009/45, art. 2(d)(i)

F15 Words in s. 4AA(3) substituted (8.6.2010) by Energy Act 2010 (c. 27), ss. 16(5), 38(3)

F16 Words in s. 4AA(4)(a) inserted (1.4.2006 for specified purposes, 1.4.2010 in so far as not already in force) by Energy Act 2004 (c. 20), ss. 179(2)(3)(d), 198(2); S.I. 2005/2965, art. 3

F17 S. 4AA(4)(b)(i) substituted (25.7.2003 for specified purposes, 29.12.2003 in so far as not already in force) by Communications Act 2003 (c. 21), s. 411(2), Sch. 17 para. 81 (with Sch. 18); S.I. 2003/1900, arts. 1(2), 2(1), Sch. 1 (with art. 3) (as amended by S.I. 2003/3142, art. 1(3)); S.I. 2003/3142, art. 3(2) (with art. 11)

F18 Words in s. 4AA(5) substituted (8.6.2010) by Energy Act 2010 (c. 27), ss. 16(6)(a), 38(3)

F19 Words in s. 4AA(5) inserted (18.2.2014) by Energy Act 2013 (c. 32), ss. 138(2), 156(2)

F20 Words in s. 4AA(5)(b) inserted (19.9.2012) by The Electricity and Gas (Smart Meters Licensable Activity) Order 2012 (S.I. 2012/2400), arts. 1, 18(2)(a)

F21 S. 4AA(5)(ba) repealed (26.1.2009) by Energy Act 2008 (c. 32), ss. 83(1)(c), 110(2), Sch. 6; S.I. 2009/45, art. 2(d)(aa)(e)(vi)(i)

F22 Words in s. 4AA(5) substituted (5.10.2004) by Energy Act 2004 (c. 20), ss. 83(b), 198(2); S.I. 2004/2575, art. 2(1), Sch. 1

F23 Words in s. 4AA(5) omitted (8.6.2010) by virtue of Energy Act 2010 (c. 27), ss. 16(6)(b), 38(3)

F24 Words in s. 4AA(5) inserted (19.9.2012) by The Electricity and Gas (Smart Meters Licensable Activity) Order 2012 (S.I. 2012/2400), arts. 1, 18(2)(b)

F25 S. 4AA(5A) inserted (5.10.2004) by Energy Act 2004 (c. 20), ss. 178, 198(2); S.I. 2004/2575, art. 2(1), Sch. 1

F26 S. 4AA(5B) inserted (8.6.2010) by Energy Act 2010 (c. 27), ss. 16(7), 38(3)

F27 Words in s. 4AA(5B) inserted (31.12.2020) by The Electricity and Gas etc. (Amendment etc.) (EU Exit) Regulations 2019 (S.I. 2019/530), regs. 1(1), 8(3); 2020 c. 1, Sch. 5 para. 1(1)

F28 Words in s. 4AA(5B) omitted (26.12.2023) by virtue of Energy Act 2023 (c. 52), ss. 202(3), 334(3)(f)

F29 Words in s. 4AA(6) substituted (26.1.2009) by Energy Act 2008 (c. 32), ss. 83(1)(d), 110(2); S.I. 2009/45, art. 2(d)(i)

F30 Word in s. 4AA(6) inserted (8.6.2010) by Energy Act 2010 (c. 27), ss. 16(8), 38(3)

F31 Words in s. 4AA(8) inserted (1.12.2004) by Energy Act 2004 (c. 20), ss. 149(8)(a), 198(2); S.I. 2004/2575, art. 2(2), Sch. 2

F32 Words in s. 4AA(8) substituted (19.9.2012) by The Electricity and Gas (Smart Meters Licensable Activity) Order 2012 (S.I. 2012/2400), arts. 1, 18(3)

Modifications etc. (not altering text)

C1 S. 4AA extended by 2000 c. 27, s. 5A(11), (as inserted (30.12.2003) by Sustainable Energy Act 2003 (c. 30), ss. 6, 9(8))

C2 Ss. 4AA-4B applied (24.8.2004 for specified purposes, 5.10.2004 in so far as not already in force) by Energy Act 2004 (c. 20), ss. 190(1), 198(2); S.I. 2004/2184, art. 2(1), Sch. 1; S.I. 2004/2575, art. 2(1), Sch. 1

C3 Ss. 4AA-4B applied (26.11.2008) by Energy Act 2008 (c. 32), ss. 102(1), 110(2)

C4 Ss. 4AA-4A excluded (26.1.2009) (with application in accordance with s. 90 of the amending Act) by Counter-Terrorism Act 2008 (c. 28), ss. 89(3), 100(3) (with s. 101(2))

C5 Ss. 4AA-4B applied (8.4.2010) by Energy Act 2010 (c. 27), ss. 30(1), 38(1)

C6 Ss. 4AA-4B applied (18.12.2011) by Energy Act 2011 (c. 16), ss. 98(13), 121(3)

C7 Ss. 4AA-4B applied (18.12.2011) by Energy Act 2011 (c. 16), ss. 78(1), 121(3)

C8 Ss. 4AA-4B applied (21.3.2012) by Energy Act 2011 (c. 16), ss. 22(9), 121(1); S.I. 2012/873, art. 2(a)(v)

C9 Ss. 4AA-4B applied (18.2.2014) by Energy Act 2013 (c. 32), ss. 136(1), 156(2)

C10 Ss. 4AA-4B applied (18.2.2014) by Energy Act 2013 (c. 32), ss. 141(1), 156(2)

C11 Ss. 4AA-4B applied (23.7.2018) by Smart Meters Act 2018 (c. 14), ss. 6(12), 14(5)

C12 Ss. 4AA-4B applied (26.10.2023 for specified purposes, 31.1.2024 in so far as not already in force) by Energy Act 2023 (c. 52), ss. 178(3), 334(1)(2)(h); S.I. 2024/32, reg. 3(a)(viii)

C13 Ss. 4AA-4B applied (11.1.2024) by Energy Act 2023 (c. 52), ss. 248(1)(2), 334(1); S.I. 2024/32, reg. 2(b)(iii)

C14 Ss. 4AA-4B applied (31.1.2024) by Energy Act 2023 (c. 52), ss. 178(1), 334(1); S.I. 2024/32, reg. 3(a)(viii)

C15 S. 4AA(2)(b) amended (temp. from 19.12.2000) by S.I. 2000/3343, art. 5 (subject to transitional provisions in arts. 3-15)

Marginal Citations

M1 1989 c. 29.

M2 1991 c. 56.