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Gas Act 1986

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E+W+S

Gas Act 1986

1986 CHAPTER 44

An Act to provide for the appointment and functions of a Director General of Gas Supply and the establishment and functions of a Gas Consumers’ Council; to abolish the privilege conferred on the British Gas Corporation by section 29 of the Gas Act 1972; to make new provision with respect to the supply of gas through pipes and certain related matters; to provide for the vesting of the property, rights and liabilities of the British Gas Corporation in a company nominated by the Secretary of State and the subsequent dissolution of that Corporation; to make provision with respect to, and to information furnished in connection with, agreements relating to the initial supply of gas won under the authority of a petroleum production licence; and for connected purposes.

[25th July 1986]

Be it enacted by the Queen’s most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:—

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Extent Information

E1Act, except for specified provisions, does not extend to N.I. see s. 68(6)

Modifications etc. (not altering text)

C1Act applied (8.11.1995) by 1995 c. 45, s. 17(2)

Part IE+W+S+N.I. Gas Supply

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Modifications etc. (not altering text)

C3Pt. I: definition of "public gas supplier" applied (E.W.) (1.12.1991) by Water Resources Act 1991 (c. 57, SIF 130), ss. 208(3)(b), 225(2) (with ss. 16(6), 179, 222(3), Sch. 22 para. 1, Sch. 23 para. 6)

Pt. I: definition of "public gas supplier" applied (E.W.) (1.12.1991) by Water Resources Act 1991 (c. 57, SIF 130), ss. 178, 225(2), Sch. 22 para. 1(4)(e) (with ss. 16(6), 179, 222(3), Sch. 22 para. 1, Sch. 23 para. 6)

Pt. I applied (1.3.1996) by 1995 c. 45, s. 6(7); S.I. 1996/218, art. 2

Pt. I applied (1.3.1996) by 1995 c. 45, s. 16(1), Sch. 4 para. 1; S.I. 1996/218, art. 2

IntroductoryE+W+S+N.I.

F11. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .E+W+S+N.I.

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Amendments (Textual)

F1S. 1 repealed (7.11.2000) by 2000 c. 27, s. 108, Sch. 8; S.I. 2000/2974, art. 2, Sch. (subject to transitional provisions in arts. 3-12)

F22. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .E+W+S+N.I.

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Amendments (Textual)

F2S. 2 repealed (7.11.2000) by 2000 c. 27, s. 108, Sch. 8; S.I. 2000/2974, art. 2, Sch. (subject to transitional provisions in arts. 3-12)

F33. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .E+W+S

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Amendments (Textual)

F3S. 3 repealed (1.10.2001) by 2000 c. 27, s. 108, Sch. 8; S.I. 2001/3266, arts. 1(2), 2, Sch. (subject to transitional provisions in arts. 3-20)

[F44AA 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 [F5existing and future] consumers in relation to gas conveyed through pipes, wherever appropriate by promoting effective competition between persons engaged in, or in commercial activities connected with, the shipping, transportation or supply of gas so conveyed.

(2)The Secretary of State and the Authority shall carry out those functions in the manner which he or it considers is best calculated to further the principal objective, having 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[F6, the Utilities Act 2000 or Part 5 of the Energy Act 2008][F7; and

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

(3)In performing that duty, 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 (within the meaning of the M1Electricity Act 1989); and

(b)any interests of consumers in relation to—

[F8(i)communications services and electronic communications apparatus, or]

(ii)water services or sewerage services (within the meaning of the M2Water Industry Act 1991),

which are affected by the carrying out of that function.

(5)Subject to subsection (2), 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;

F9(ba). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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

[F10and (so far as not otherwise required to do so by this subsection) shall] have regard, in carrying out those functions, to the effect on the environment of activities connected with the conveyance of gas through pipes.

[F11(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.]

(6)In [F12subsections (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[F13, 7ZA] or 7A and “licence holder” shall be construed accordingly.]

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Amendments (Textual)

F4S. 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)

F5Words 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)

F6Words in s. 4AA(2)(b) substituted (26.11.2008) by Energy Act 2008 (c. 32), ss. 102(3), 110(2)

F7S. 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)

F8S. 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)

F10Words 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

F12Words 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)

F13Words 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

Modifications etc. (not altering text)

C4S. 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))

C5Ss. 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

C6Ss. 4AA-4B applied (26.11.2008) by Energy Act 2008 (c. 32), ss. 102(1), 110(2)

C7Ss. 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))

C8S. 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

[F144AB Guidance on social and environmental matters.E+W+S

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

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

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

(a)the Authority;

[F15(b)the Council;]

(c)licence holders; and

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

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

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

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

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

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

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

(a)Parliament is dissolved or prorogued; or

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

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

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Amendments (Textual)

F14S. 4AB inserted (20.12.2000) by 2000 c. 27, s. 10; S.I. 2000/3343, art. 2, Sch. (subject to transitional provisions in arts. 3-15)

Modifications etc. (not altering text)

C5Ss. 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

C6Ss. 4AA-4B applied (26.11.2008) by Energy Act 2008 (c. 32), ss. 102(1), 110(2)

C7Ss. 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))

C9S. 4AB extended by 2000 c. 27, s. 5A(11) (as inserted (30.12.2003) by Sustainable Energy Act 2003 (c. 30), ss. 6, 9(8))

[F164A Health and safety.E+W+S

(1)The Secretary of State and the Authority shall consult [F17the Health and Safety Executive] about all gas safety issues which may be relevant to the carrying out of any of their respective functions under this Part.

(2)The Secretary of State and the Authority shall, in carrying out their respective functions under this Part, take into account any advice given by [F17the Health and Safety Executive] about any gas safety issue (whether or not in response to consultation under subsection (1)).

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

(a)members of the public; or

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

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Amendments (Textual)

F16S. 4A substituted (20.12.2000) by 2000 c. 27, s. 11; S.I. 2000/3343, art. 2, Sch.(subject to transitional provisions in arts. 3-15)

Modifications etc. (not altering text)

C5Ss. 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

C6Ss. 4AA-4B applied (26.11.2008) by Energy Act 2008 (c. 32), ss. 102(1), 110(2)

C7Ss. 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))

C10S. 4A extended by 2000 c. 27, s. 5A(11) (as inserted (30.12.2003) by Sustainable Energy Act 2003 (c. 30), ss. 6, 9(8))

[F184B Exceptions from sections 4AA to 4A.E+W+S

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

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

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

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

(3)The Authority may nevertheless, when exercising any function under section 36A(3), have regard to any matter in respect of which a duty is imposed by sections 4AA to 4A if it is a matter to which [F19the Office of Fair Trading] could have regard when exercising that function.

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

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Amendments (Textual)

F18S. 4B inserted (20.12.2000) by 2000 c. 27, s. 12; S.I. 2000/3343, art. 2, Sch. (subject to transitional provisions in arts. 3-15)

F19Words in s. 4B(3) substituted (1.4.2003) by Enterprise Act 2002 (c. 40), s. 279, Sch. 25 para. 15(2); S.I. 2003/766, art. 2, Sch. (with art. 3) (as amended (20.7.2007) by S.I. 2007/1846, reg. 3(2), Sch.)

Modifications etc. (not altering text)

C5Ss. 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

C6Ss. 4AA-4B applied (26.11.2008) by Energy Act 2008 (c. 32), ss. 102(1), 110(2)

C11S. 4B(3) excluded (20.12.2000) by S.I. 2000/3343, art. 10(1)(b) (subject to transitional provisions in arts. 3-15)

[F20 Licensing of activities relating to gas]E+W+S

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Amendments (Textual)

F20S. 5 and cross-heading preceding it substituted (1.3.1996) by 1995 c. 45, s. 3; S.I. 1996/218, art. 2

5F21[Prohibition on unlicensed activities]E+W+S

(1)Subject to section 6A below and Schedule 2A to this Act, a person who—

(a)[F22otherwise than by means of a gas interconnector] conveys gas through pipes to any premises, or to a pipe-line system operated by a [F23gas transporter];

[F24(aa)participates in the operation of a gas interconnector;]

(b)supplies to any premises gas which has been conveyed to those premises through pipes; or

(c)arranges with a [F23gas transporter] for gas to be introduced into, conveyed by means of or taken out of a pipe-line system operated by that transporter,

shall be guilty of an offence unless he is authorised to do so by a licence.

(2)The exceptions to subsection (1) above which are contained in Schedule 2A to this Act shall have effect.

(3)A person guilty of an offence under this section shall be liable—

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

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

(4)No proceedings shall be instituted in England and Wales in respect of an offence under this section except by or on behalf of the Secretary of State or the Director.

(5)Any reference in this Part to the conveyance by any person of gas through pipes to any premises is a reference to the conveyance by him of gas through pipes to those premises with a view to the gas being supplied to those premises by any person, or being used in those premises by the holder of a licence under section 7A(2) below.

[F25(6)A reference in this Part to participating in the operation of a gas interconnector is a reference to—

(a)co-ordinating and directing the conveyance of gas into or through a gas interconnector; or

(b)making such an interconnector available for use for the conveyance of gas.

(7)For the purposes of subsection (6)(b) a person shall not be regarded as making something available just because he consents to its being made available by another.

(8)In this Part “gas interconnector” means so much of any pipeline system as—

(a)is situated at a place within the jurisdiction of Great Britain; and

(b)subsists wholly or primarily for the purposes of the conveyance of gas (whether in both directions or in only one) between Great Britain and another country or territory.

(9)For the purposes of this section a place is within the jurisdiction of Great Britain if it is in Great Britain, in the territorial sea adjacent to Great Britain or in an area designated under section 1(7) of the Continental Shelf Act 1964.

(10)In this section “pipe-line system” includes the pipes and any associated apparatus comprised in that system.]

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Amendments (Textual)

F21S. 5 and cross-heading substituted (1.3.1996) by 1995 c. 45, s. 3; S.I. 1996/218, art. 2

F22Words in s. 5(1)(a) inserted (14.8.2006) by Energy Act 2004 (c. 20), ss. 149(2)(a), 198(2); S.I. 2006/1964, art. 2, Sch.

F23Words in s. 5(1)(a)(c) substituted (1.10.2001) by 2000 c. 27, s. 108, Sch. 6, Pt. I para. 3; S.I. 2001/3266, art. 2, Sch. (subject to transitional provisions in arts. 3-20)

F24S. 5(1)(aa) inserted (14.8.2006) by Energy Act 2004 (c. 20), ss. 149(2)(b), 198(2); S.I. 2006/1964, art. 2, Sch.

Modifications etc. (not altering text)

C12S. 5(1)(a) excluded (8.11.1995 with effect as mentioned in Sch. 5 Pt. II para. 16(1) of the amending Act) by 1995 c. 45, s. 17(1), Sch. 5 Pt. II para. 16(1)(a); S.I. 1996/218, art. 2

S. 5(1)(a) excluded (14.10.1999) (temp. to 1.3.2011 unless revoked earlier) by S.I. 1999/2639, arts. 1(2)(3), 3, 4-6, 7(1)

S. 5(1)(a) restricted (9.12.1999) (temp. to 1.3.2011 unless revoked earlier) by S.I. 1999/3089, arts. 1(2)(3), 3, 5(1)

C13S. 5(1)(a)-(c) excluded (8.11.1995 for specified purposes) by 1995 c. 45, s. 17(1), Sch. 5 Pt. II para. 17(1)(a)

C14S. 5(1)(a) excluded (1.12.1996) by S.I. 1996/2795, arts. 3, 4

C15S. 5(1)(b) excluded (8.11.1995) by 1995 c. 45, s. 17(1), Sch. 5 Pt. II para. 16(1)(b); S.I. 1996/218, art. 2

S. 5(1)(b) excluded (14.10.1999) (temp. to 1.3.2011 unless revoked earlier) by S.I. 1999/2639, arts. 1(2)(3), 3, 4-6, 7(2)

S. 5(1)(b) restricted (9.12.1999) (temp. to 1.3.2011 unless revoked earlier) by S.I. 1999/3089, arts. 1(2)(3), 5(2)

C16S. 5(1)(c) modified (8.11.1995) by 1995 c. 45, s. 17(1), Sch. 5 Pt. II paras. 18(1)

F266. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .E+W+S

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Amendments (Textual)

F26S. 6 repealed (1.3.1996) by 1995 c. 45, ss. 3(3), 17(5), Sch. 6; S.I. 1996/218, art. 2

[F276A Exemptions from prohibition.E+W+S

(1)The Secretary of State may, F28... by order grant exemption from paragraph (a)[F29, (aa)], (b) or (c) of section 5(1) above—

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

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

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

[F30(1A)Before making an order under subsection (1) the Secretary of State shall give notice—

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

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

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

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

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

(a)by serving a copy of it on the Authority and the Council; and

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

[F31(2)Notice of an exemption granted to a person shall be given—

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

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

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

(a)persons of that class; and

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

(3)An exemption may be granted—

(a)indefinitely; or

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

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

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

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

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

[F32(5)The Secretary of State may by order revoke an order by which an exemption was granted to a person or vary an order by which more than one exemption was so granted so as to terminate any of the exemptions—

(a)at the person’s request;

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

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

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

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

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

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

(a)at the person’s request;

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

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

(8)Before—

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

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

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

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

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

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

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

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Amendments (Textual)

F27S. 6A substituted (1.3.1996) by 1995 c. 45, s. 4; S.I. 1996/218, art. 2

F28Words in s. 6A(1) repealed (1.10.2001) by 2000 c. 27, ss. 86(1), 108, Sch. 8; S.I. 2001/3266, arts. 1(2), 2, Sch. (subject to transitional provisions in arts. 3-20)

F29Words in s. 6A(1) inserted (14.8.2006) by Energy Act 2004 (c. 20), ss. 149(4), 198(2); S.I. 2006/1964, art. 2, Sch.

F30S. 6A(1A)(1B) inserted (1.10.2001) by 2000 c. 27, s. 86(2); S.I. 2001/3266, arts. 1(2), 2, Sch. (subject to transitional provisions in arts. 3-20)

F31S. 6A(2)(2A)(3) substituted (1.10.2001) for s. 6A(2)(3) by 2000 c. 27, s. 86(3); S.I. 2001/3266, arts. 1(2), 2, Sch. (subject to transitional provisions in arts. 3-20)

F32S. 6A(5)-(9) substituted (1.10.2001) for s. 6A(5) by 2000 c. 27, s. 86(4); S.I. 2001/3266, arts. 1(2), 2, Sch. (subject to transitional provisions in arts. 3-20)

[F337 Licensing of public gas transporters.E+W+S

(1)In this Part “[F34gas transporter]” means the holder of a licence under this section except where the holder is acting otherwise than for purposes connected with—

(a)the carrying on of activities authorised by the licence;

(b)the conveyance of gas through pipes which—

(i)are situated in an authorised area of his; or

(ii)are situated in an area which was an authorised area of his, or an authorised area of a previous holder of the licence, and were so situated at a time when it was such an area; or

(c)the conveyance through pipes of gas which is in the course of being conveyed to or from a country or territory outside Great Britain.

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

(a)to convey gas through pipes to any premises in an authorised area of his, that is to say, [F35any area specified in the licence as it has effect for the time being;]

(b)to convey gas through pipes either to any pipe-line system operated by another [F36gas transporter], or to any pipe-line system so operated which is specified in the licence or an extension of the licence.

(3)A licence shall not be granted under this section to a person who is the holder of a licence under section [F377ZA or] 7A below.

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

(a)as if any area or pipe-line system specified in the direction were specified in the licence;

(b)in the case of a licence under subsection (2)(a) above, as if it were also a licence under subsection (2)(b) above and any pipe-line system specified in the direction were specified in the licence; or

(c)in the case of a licence under subsection (2)(b) above, as if it were also a licence under subsection (2)(a) above and any area specified in the direction were specified in the licence;

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

[F38(4A)The Authority may, with the consent of the licence holder, direct that any licence under this section shall have effect as if any area or pipe-line system specified in the direction were not specified in the licence; and references in this Part to, or to the grant of, a restriction under this section, or a restriction of such a licence, shall be construed as references to, or to the giving of, such a direction.]

(5)Before granting a licence F39. . . under this section, the Director shall give notice—

(a)stating that he proposes to grant the licence F39. . .;

(b)stating the reasons why he proposes to grant the licence F39. . .; and

(c)specifying the time from the date of publication of the notice (not being less than two months F39. . .) within which represent- ations or objections with respect to the proposed licence F39. . . may be made,

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

(6)A notice under subsection (5) above shall be given—

(a)by publishing the notice in such manner as the Director considers appropriate for bringing it to the attention of persons likely to be affected by the grant of the licence F39. . .; and

(b)by sending a copy of the notice to the Secretary of State, to the Health and Safety Executive and to any [F36gas transporter] whose area includes the whole or any part of the area proposed to be specified in the licence F39. . ..

F40(7). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F40(8). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(9)As soon as practicable after the granting of a licence under this section, the [F36gas transporter] shall publish, in such manner as the Director considers appropriate for bringing it to the attention of persons who are likely to do business with the transporter, a notice—

(a)stating that the licence has been granted; and

(b)explaining that, as a result, it might be necessary for those persons to be licensed under section 7A below.

(10)In this section—

(a)relevant main” has the same meaning as in section 10 below;

(b)references to an area specified in a licence or direction include references to an area included in an area so specified; and

(c)references to a pipe-line system specified in a licence or direction include references to a pipe-line system of a description, or situated in an area, so specified.

F41(11). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .]

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Amendments (Textual)

F33S. 7 substituted (1.3.1996) by 1995 c. 45, s. 5; S.I. 1996/218, art. 2

F34Words in s. 7(1) substituted (1.10.2001) by 2000 c. 27, s. 76(2); S.I. 2001/3266, arts. 1(2), 2, Sch. (subject to transitional provisions in arts. 3-20)

F35Words in s. 7(2)(a) and word “and”preceding para. (b) substituted (1.10.2001) by 2000 c. 27, s. 76(3); S.I. 2001/3266, arts. 1(2), 2, Sch. (subject to transitional provisions in arts. 3-20)

F36Words in s. 7(2)(b)(6)(b)(9) substituted (1.10.2001) by 2000 c. 27, s. 108, Sch. 6, Pt. I para. 4; S.I. 2001/3266, arts. 1(2), 2, Sch. (subject to transitional provisions in arts. 3-20)

F37Words in s. 7(3) inserted (1.12.2004) by Energy Act 2004 (c. 20), ss. 149(5), 198(2); S.I. 2004/2575, art. 2(2), Sch. 2

F38S. 7(4A) inserted (1.10.2001) by 2000 c. 27, s. 76(4); S.I. 2001/3266, arts. 1(2), 2, Sch. (subject to transitional provisions in arts. 3-20)

F39Words in s. 7(5)(6) repealed (1.10.2001) by 2000 c. 27, ss. 76(5), 108, Sch. 8; S.I. 2001/3266, arts. 1(2), 2, Sch. (subject to transitional provisions in arts. 3-20)

F40S. 7(7)(8) repealed (1.10.2001) by 2000 c. 27, ss. 76(6), 108, Sch. 8; S.I. 2001/3266, arts. 1(2), 2, Sch. (subject to transitional provisions in arts. 3-20)

F41S. 7(11) repealed (1.10.2001) by 2000 c. 27, s. 108, Sch. 8; S.I. 2001/3266, arts. 1(2), 2, Sch. (subject to transitional provisions in arts. 3-20)

Modifications etc. (not altering text)

C17S. 7 amended (16.5.2001) by 2000 c. 27, s. 81(1); S.I. 2001/1781, art. 2, Sch. (subject to transitional provisions in arts. 3-10)

S. 7 amended (1.10.2001) by 2000 c. 27, s. 76(1); S.I. 2001/3266, arts. 1(2), 2, Sch. (subject to transitional provisions in arts. 3-20)

C18S. 7 applied (with modifications) (8.11.1995) by 1995 c. 45, s. 17(1), Sch. 5 Pt. II para. 15(1)(4); S.I. 1996/218, art. 2

C19S. 7 extended (8.11.1995) by 1995 c. 45, s. 17(1), Sch. 5 Pt. I para. 1(1)(a); S,I. 1996/218, art. 2

[F427ZALicences for operation of gas interconnectorsE+W+S

(1)Subject to subsection (2), the Authority may grant a licence authorising any person to participate in the operation of a gas interconnector.

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

(3)A licence under this section—

(a)must specify the interconnector or interconnectors in relation to which participation is authorised; and

(b)may limit the forms of participation in the operation of an interconnector which are authorised by the licence.]

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Amendments (Textual)

Modifications etc. (not altering text)

[F437A Licensing of gas suppliers and gas shippers.E+W+S

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

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

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

(2)Subject to subsection (3) below, the Director may grant a licence authorising any person to arrange with any [F44gas transporter] for gas to be introduced into, conveyed by means of or taken out of a pipe-line system operated by that transporter, either generally or for purposes connected with the supply of gas to any premises specified in the licence.

(3)A licence shall not be granted under this section to a person who is the holder of a licence under section 7 [F45or 7ZA] above.

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

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

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

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

(5)Subsection (4) above shall not apply in relation to a licence under subsection (1) above which authorises only the supply to premises of gas which has been conveyed to the premises otherwise than by a [F44gas transporter].

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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Amendments (Textual)

F43S. 7A inserted (1.3.1996) by 1995 c. 45, s. 6; S.I. 1996/218, art. 2

F44Words in S. 7A(2)(5) substituted (1.10.2001) by 2000 c. 27, s. 108, Sch. 6 Pt. I para. 2(1); S.I. 2001/3266, arts. 1(2), 2, Sch. (subject to transitional provisions in arts. 3-20)

F45Words in s. 7A(3) inserted (1.12.2004) by Energy Act 2004 (c. 20), ss. 149(7), 198(2); S.I. 2004/2575, art. 2(2), Sch. 2

Modifications etc. (not altering text)

C21S. 7A applied (with modifications) (8.11.1995) by 1995 c. 45, s. 17(1), Sch. 5 Pt. II para. 15(1)(4); S.I. 1996.218, art. 2

S. 7A applied (with modifications) (1.3.1996) by S.I. 1996/399, art. 2(2)

C23S. 7A(1)(2) amended (1.10.2001) by 2000 c. 27, s. 81(1); S.I. 2001/3266, arts. 1(2), 2, Sch. (subject to transitional provisions in arts. 3-20)

[F467B Licences: general.E+W+S

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

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

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

(b)in the case of an application for a licence or extension under section 7 above, give notice of the application to any [F47gas transporters] whose authorised area includes the whole or any part of the area to which the application relates.

[F48(2A)Where the Authority proposes to refuse the application, it shall give to the applicant a notice—

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

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

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

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

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

(4)A licence may include—

(a)such conditions (whether or not relating to the activities authorised by the licence) as appear to the Director to be requisite or expedient having regard to the duties imposed by [F49sections 4AA, 4AB and 4A];

F50(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(c)conditions requiring the rendering to the Director of a payment on the grant of the licence or payments during the currency of the licence or both of such amount or amounts as may be determined by or under the licence; F51. . .

F51(d). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F52(4A)Without prejudice to the generality of paragraph (a) of subsection (4), conditions included in a licence under section 7 by virtue of that paragraph—

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

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

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

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

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

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

(iii)provide for the determination by the Director, the Secretary of State or the Health and Safety Executive of such questions arising under the licence, or under any document [F53referred to] in the licence, as are specified in the licence or are of a description so specified; and

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

(i)so to increase his charges for the conveyance of gas as to raise such amounts as may be determined by or under the conditions; and

(ii)to pay the amounts so raised to such holders of licences under section 7A above as may be so determined.

(6)Conditions included in a licence may—

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

(b)provide for references in the conditions to any document F54. . .to operate as references to that document as revised or re-issued from time to time.

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

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

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

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

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

(a)to the Health and Safety Executive; F55. . .

(b)in the case of a licence [F56, extension or restriction] under section 7 above, to any public gas transporter whose authorised area [F57includes] the whole or any part of the area specified in the licence [F56, extension or restriction][F58; and.

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

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

[F59(11)In this section “prescribed” means prescribed in regulations made by the Authority.]

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Amendments (Textual)

F46S. 7B inserted (1.3.1996) by 1995 c. 45, s. 7; S.I. 1996/218, art. 2

F47Words in s. 7B(2)(b)(9)(b) substituted (16.5.2001 for certain purposes and otherwise 1.10.2001) by 2000 c. 27, s. 108, Sch. 6 Pt. I para. 2(1); S.I. 2001/1781, art. 2, Sch. (subject to transitional provisions in arts. 3-10); S.I. 2001/3266, arts. 1(2), 2, Sch. (subject to transitional provisions in arts. 3-20)

F48S. 7B(2A) inserted (1.10.2001) by 2000 c. 27, s. 74(2); S.I. 2001/3266, arts. 1(2), 2, Sch. (subject to transitional provisions in arts. 3-20)

F49Words in s. 7B(4)(a) substituted (20.12.2000) by 2000 c. 27, s. 74(3)(a); S.I. 2000/3343, art. 2, Sch. (subject to transitional provisions in arts. 3-15)

F50S. 7B(4)(b) omitted (20.12.2000) by virtue of 2000 c. 27, s. 74(3)(b); S.I. 2000/3343, art. 2, Sch. (subject to transitional provisions in arts. 3-15) and repealed (1.10.2001) by 2000 c. 27, s. 108, Sch. 8; S.I. 2001/3266, arts. 1(2), 2, Sch. (subject to transitional provisions in arts. 3-20)

F51S. 7B(4)(d) and word “and”preceding it repealed (7.11.2000) by 2000 c. 27, s. 108, Sch. 6 Pt. I para. 5, Sch. 8; S.I. 2000/2974, art. 2, Sch. (subject to transitional provisions in arts. 3-12)

F52S. 7B(4A) inserted (16.5.2001 for certain purposes and otherwise 1.10.2001) by 2000 c. 27, s. 74(4); S.I. 2001/1781, art. 2, Sch. (subject to transitional provisions in arts. 3-10); S.I. 2001/3266, arts. 1(2), 2, Sch. (subject to transitional provisions in arts. 3-20)

F53Words s. 7B(5)(a)(iii) substituted (16.5.2001 for certain purposes and otherwise 1.10.2001) by 2000 c. 27, s. 74(5); S.I. 2001/1781, art. 2, Sch. (subject to transitional provisions in arts. 3-10); S.I. 2001/3266, arts. 1(2), 2, Sch. (subject to transitional provisions in arts. 3-20)

F54Words in s. 7B(6) shall cease to have effect (16.5.2001 for certain purposes and otherwise 1.10.2001) by 2000 c. 27, s. 74(6); S.I. 2001/1781, art. 2, Sch. (subject to transitional provisions in arts. 3-10); S.I. 2001/3266, arts. 1(2), 2, Sch. (subject to transitional provisions in arts. 3-20) and are repealed (1.10.2001) by 2000 c. 27, s. 108, Sch. 8; S.I. 2001/3266, arts. 1(2), 2, Sch. (subject to transitional provisions in arts. 3-20)

F55S. 7B(9): word “and”preceding para. (b) repealed (1.10.2001) by 2000 c. 27, s. 108, Sch. 8; S.I. 2001/3266, art. 2, Sch. (subject to transitional provisions in arts. 3-20)

F56Words in s. 7B(9)(b) substituted (1.10.2001) by 2000 c. 27, s. 108, Sch. 6, Pt. I para. 6(a)(i); S.I. 2001/3266, arts. 1(2), 2, Sch. (subject to transitional provisions in arts. 3-20)

F57Word in s. 9B(9)(b) substituted (1.10.2001) by 2000 c. 27, s. 108, Sch. 6 Pt. I para. 6(a)(ii); S.I. 2001/3266, arts. 1(2), 2, Sch. (subject to transitional provisions in arts. 3-20)

F58S. 7B(9)(c) and the word “and”immediately preceding (1.10.2001) by 2000 c. 27, s. 108, Sch. 6, Pt. I para. 6(b); S.I. 2001/3266, art. 2, Sch. (subject to transitional provisions in arts. 3-20)

F59S. 7B(10) inserted (16.5.2001 for certain purposes, otherwise 1.10.2001) by 2000 c. 27, s. 74(7); S.I. 2001/1781, art. 2, Sch. (subject to transitional provisions in arts. 3-10); S.I. 2001/3266, art. 2, Sch. (subject to transitional provisions in arts. 3-20)

Modifications etc. (not altering text)

C25S. 7B applied (with modifications) (1.3.1996) by S.I. 1996/399, art. 2(2)

C26S. 7B applied (with modifications) (8.11.1995 ) by 1995 c. 45, s. 17(1), Sch. 5 Pt. II para. 15(1)(4); S.I. 1996/218, art. 2

C27S. 7B applied (with modifications) (1.12.2004) by Energy Act 2004 (c. 20), ss. 152(3), 198(2); S.I. 2004/2575, art. 2(2), Sch. 2

[F608 Standard conditions of licences.E+W+S

(1)Subject to subsections (2) and (3) F61... , each condition which by virtue of [F62section 81(2) of the Utilities Act 2000] [F63or section 150 of the Energy Act 2004] is a standard condition for the purposes of—

(a)licences under section 7 above;

[F64(aa)licences under section 7ZA above;]

(b)licences under subsection (1) of section 7A above; or

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

shall be incorporated (that is to say, incorporated by reference) in each licence under that section or, as the case may be, that subsection.

(2)Subsection (1) above shall not apply in relation to a licence under section 7A(1) above which authorises only the supply to premises of gas which has been conveyed to the premises otherwise than by a [F65gas transporter].

(3)Subject to the following provisions of this section, the Director may, in granting a licence, modify any of the standard conditions to such extent as he considers requisite to meet the circumstances of the particular case.

(4)Before making any modifications under subsection (3) above, the Director shall give notice—

(a)stating that he proposes to make the modifications and setting out their effect;

(b)stating the reasons why he proposes to make the modifications; and

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

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

(5)A notice under subsection (4) above shall be given—

(a)by publishing the notice in such manner as the Director considers appropriate for the purpose of bringing the notice to the attention of persons likely to be affected by the making of the modifications; and

(b)by sending a copy of the notice to the Secretary of State, to the Health and Safety Executive and to the Council.

(6)If, within the time specified in the notice under subsection (4) above, the Secretary of State directs the Director not to make any modification, the Director shall comply with the direction.

[F66(6A)The Authority shall not make any modifications under subsection (3) above of a condition of a licence under section 7ZA unless it is of the opinion that the modifications are such that—

(a)the licence holder would not be unduly disadvantaged in competing with one or more other holders of licences under that section; and

(b)no other holder of a licence under that section would be unduly disadvantaged in competing with the holder of the licence to be modified or with any one or more other holders of licences under that section.]

(7)The Director shall not make any modifications under subsection (3) above of a condition of a licence under subsection (1) or (2) of section 7A above unless he is of the opinion that the modifications are such that.

[F67(a)the licence holder would not be unduly disadvantaged in competing with other holders of a licence under that subsection; and

(b)]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 [F67being modified])

(8)The modification under subsection (3) above of a condition of a licence shall not prevent so much of the condition as is not so modified being regarded as a standard condition for the purposes of this Part.

(9)In this section “modify” includes fail to incorporate and “modification” shall be construed accordingly.]

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Amendments (Textual)

F60S. 8 substituted (1.3.1996) by 1995 c. 45, s. 8(1); S.I. 1996/218, art. 2

F61Words in s. 8(1) repealed (1.10.2001) by 2000 c. 27, ss. 81(3)(a), 108, Sch. 8; S.I. 2001/3266, arts. 1(2), 2, Sch. (subject to transitional provisions in arts. 3-20)

F62Words in s. 8(1) substituted (1.10.2001) by 2000 c. 27, s. 81(3)(b); S.I. 2001/3266, arts. 1(2), 2, Sch. (subject to transitional provisions in arts. 3-20)

F63Words in s. 8(1) inserted (1.4.2005) by Energy Act 2004 (c. 20), ss. 150(6)(a), 198(2); S.I. 2005/877, art. 2(1), Sch. 1

F65Words in s. 8 substituted (1.10.2001) by 2000 c. 27, s. 108, Sch. 6 Pt. I para. 2(1); S.I. 2001/3266, art. 2, Sch. (subject to transitional provisions in arts. 3-20)

F67Words in s. 8(7) inserted (1.10.2001) by 2000 c. 27, s. 82(1); S.I. 2001/3266, arts. 1(2), 2, Sch. (subject to transitional provisions in arts. 3-20)

Modifications etc. (not altering text)

C28S. 8 applied (with modifications) (1.12.2004) by Energy Act 2004 (c. 20), ss. 152(3), 198(2); S.I. 2004/2575, art. 2(2), Sch. 2

[F688AA Transfer of licences.E+W+S

(1)A licence—

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

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

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

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

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

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

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

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

(b)in the case of a partial transfer—

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

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

(7)The Authority shall—

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

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

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

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

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

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

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

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

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

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

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

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

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

(12)In this section—

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

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

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Amendments (Textual)

F68S. 8AA substituted (1.10.2001) by 2000 c. 27, s. 85; S.I. 2001/3266, arts. 1(2), 2, Sch. (subject to transitional provisions in arts. 3-20)

[8AF69Modification or removal of the 25,000 therm limits.E+W+S

(1)The Secretary of State may by order amend [F70section 10(8) or (12) below, paragraph 4 of Schedule 2A to this Act or paragraph 4, 8 or 16 of Schedule 2B to this Act] by substituting—

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

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

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

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

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

F71(3). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F71(4). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ]

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Amendments (Textual)

F69S. 8A inserted (30.5.1992) by Competition and Service (Utilities) Act 1992 (c. 43), s. 37; Commencement Order No. 1 made on 29.5.1992, art. 2.

F70Words in s. 8A(1) substituted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 2(1); S.I. 1996/218, art. 2

F71S. 8A(3)(4) repealed (1.3.1996) by 1995 c. 45, ss. 10(1), 17(5), Sch. 3 para. 2(2), Sch. 6; S.I. 1996/218, art. 2

[F72 The gas code]E+W+S

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Amendments (Textual)

F72S. 8B and cross-heading inserted (1.3.1996) by 1995 c. 45, s. 9; S.I. 1996/218, art. 2

8B[F73 The gas code.]E+W+S

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

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Amendments (Textual)

F73S. 8B and cross-heading inserted (1.3.1996) by 1995 c. 45, s. 9(1); S.I. 1996/218, art. 2

[F74 Powers and duties of public gas transporters]E+W+S

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Amendments (Textual)

F74Cross-heading substituted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 3; S.I. 1996/218, art. 2

9[F75 General powers and duties.]E+W+S

(1)It shall be the duty of a [F76gas transporter] as respects each authorised area of his—

(a)to develop and maintain an efficient and economical pipe-line system for the conveyance of gas; and

(b)subject to paragraph (a) above, to comply, so far as it is economical to do so, with any reasonable request for him [F77

(i)]

to connect to that system, and convey gas by means of that system to, any premises [F78; or.

(ii)to connect to that system a pipe-line system operated by an authorised transporter.]

[F79(1A)It shall also be the duty of a gas transporter to facilitate competition in the supply of gas.]

(2)It shall also be the duty of a [F76gas transporter] to avoid any undue preference or undue discrimination—

(a)in the connection of premises [F80, or a pipe-line system operated by an authorised transporter,] to any pipe-line system operated by him; or

(b)in the terms on which he undertakes the conveyance of gas by means of such a system.

(3)The following provisions shall have effect, namely—

(a)Schedule 3 to this Act (which provides for the acquisition of land by [F76gas transporters]); and

(b)Schedule 4 to this Act (which relates to the breaking up of streets and bridges by such transporters).

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Amendments (Textual)

F75S. 9 substituted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 3; S.I. 1996/218, art. 2

F76Words in s. 9(1)(2)(3)(a) substituted (1.10.2001) by 2000 c. 27, s. 108, Sch. 6 Pt. I para. 2(1); S.I. 2001/3266, arts. 1(2), 2, Sch. (subject to transitional provisions in arts. 3-20)

F77S. 9(1)(b): “-(i)”inserted (1.10.2001) by 2000 c. 27, s. 79(2)(a); S.I. 2001/3266, arts. 1(2), 2, Sch. (subject to transitional provisions in arts. 3-20)

F78S. 9(1)(b)(ii) and the word “or”immediately preceding it inserted (1.10.2001) by 2000 c. 27, s. 79(2)(b); S.I. 2001/3266, arts. 1(2), 2, Sch. (subject to transitional provisions in arts. 3-20)

F79S. 9(1A) inserted (1.10.2001) by 2000 c. 27, s. 79(3); S.I. 2001/3266, arts. 1(2), 2, Sch. (subject to transitional provisions in arts. 3-20)

F80Words in s. 9(2)(a) inserted (1.10.2001) by 2000 c. 27, s. 79(4); S.I. 2001/3266, arts. 1(2), 2, Sch. (subject to transitional provisions in arts. 3-20)

Modifications etc. (not altering text)

C29S. 9(1)(b) applied (with modifications) (1.3.1996) by S.I. 1996/399, art. 3(1)

C30S. 9(3)(a) functions exercisable in or as regards Scotland (14.12.2000) by S.I. 2000/3253, art. 2, Sch. 1 para. 6 (with transitional provisions in art. 6)

S. 9(3)(a) functions transferred to Scottish Ministers (15.12.2000) by S.I. 2000/3253, art. 3, Sch. 2 (with transitional provisions in art. 6)

[F8110 Duty to connect certain premises.E+W+S

(1)Subsection (2) below applies to any premises in an authorised area of a [F82gas transporter] which—

(a)are situated within 23 metres from a relevant main of the transporter; or

(b)could be connected to any such main by a pipe supplied and laid, or proposed to be supplied and laid, by the owner or occupier of the premises.

(2)Subject to the provisions of this Part and any regulations made under those provisions, a [F82gas transporter] shall, on being required to do so by the owner or occupier of any premises to which this subsection applies—

(a)in the case of premises falling within paragraph (a) of subsection (1) above, connect the premises to the relevant main, and supply and lay any pipe that may be necessary for that purpose; and

(b)in the case of premises falling within paragraph (b) of that subsection, connect the premises to the relevant main by the pipe there mentioned;

and in the following provisions of this section “connect”, in relation to any premises, means connect to a relevant main of a [F82gas transporter] and “connection” shall be construed accordingly.

(3)Subject to the provisions of this Part and any regulations made under those provisions, where any premises are connected (whether by virtue of subsection (2) above or otherwise), the [F82gas transporter] shall maintain the connection until such time as it is no longer required by the owner or occupier of the premises.

[F83(3A)A gas transporter may require any person who requires a connection under subsection (2)(b) to accept any terms—

(a)indemnifying the transporter in respect of any liability connected with the laying of the pipe;

(b)which it is reasonable in all the circumstances for that person to be required to accept.]

(4)Where any person requires a connection in pursuance of subsection (2) above, he shall serve on the [F82gas transporter] a notice specifying—

(a)the premises in respect of which the connection is required; and

(b)the day (not being earlier than a reasonable time after the service of the notice) upon which the connection is required to be made.

(5)Where any pipe is supplied and laid by a [F82gas transporter] in pursuance of subsection (2)(a) above, the cost of supplying and laying the pipe shall, if and to the extent that the transporter so requires and the conditions of his licence so allow, be defrayed by the person requiring the connection.

[F84(5A)Where in pursuance of subsection (2)(b) a gas transporter connects any premises to a relevant main by a pipe supplied and laid by the owner or occupier of the premises, the cost of making the connection shall, if and to the extent that the transporter so requires and the conditions of his licence so allow, be defrayed by the person supplying and laying the pipe.]

(6)Where at any time a [F82gas transporter] connects any premises under subsection (2)(b) above—

(a)the pipe supplied and laid by the owner or occupier of the premises; and

(b)any rights [F85or liabilities] of the owner or occupier which relate to the laying, maintenance, repair, alteration or removal of the pipe,

shall at that time vest in and become property [F86, rights or liabilities] of the transporter.

(7)The Director may, with the consent of the Secretary of State, make provision by regulations for entitling a [F82gas transporter] to require a person requiring a connection in pursuance of subsection (2) above to pay to the transporter an amount in respect of the expenses of the laying of the main used for the purpose of making that connection if—

(a)the connection is required within the prescribed period after the laying of the main;

(b)a person for the purpose of connecting whose premises the main was laid has made a payment to the transporter in respect of those expenses;

(c)the amount required does not exceed any amount paid in respect of those expenses by such a person or by any person previously required to make a payment under the regulations; and

(d)the transporter has not recovered those expenses in full.

(8)Nothing in subsection (2) or (3) above shall be taken as requiring a [F82gas transporter] to connect, or maintain the connection of, any premises if the supply of gas to those premises is likely to exceed 75,000 therms in any period of twelve months.

(9)Nothing in subsection (2) or (3) above shall be taken as requiring a [F82gas transporter] to connect, or to maintain the connection of, any premises if—

(a)he is prevented from doing so by circumstances not within his control;

(b)circumstances exist by reason of which his doing so would or might involve danger to the public, and he has taken all such steps as it was reasonable to take both to prevent the circumstances from occurring and to prevent them from having that effect; or

(c)in the case of premises falling within paragraph (b) of subsection (1) above, the pipe supplied and laid by the owner or occupier of the premises is not fit for the purpose.

(10)Where—

(a)any person requires a connection to be made or maintained in pursuance of subsection (2) or (3) above;

(b)the making or maintenance of the connection would involve a new or increased supply of gas to the premises in question;

(c)the [F82gas transporter] reasonably expects that, if the connection were made or maintained, gas would be supplied to the premises in question at a rate exceeding 2,500 therms a year; and

(d)the new or increased supply is such that the connection cannot be made or maintained without the laying of a new main, or the enlarging of an existing main, or the construction or enlarging of any other works required for the conveyance of gas,

the transporter may, if he thinks fit, refuse to make or maintain the connection unless that person enters into a written contract with the transporter to make such payments to him as he may reasonably require having regard to the expense to be incurred in laying or enlarging the main or constructing or enlarging the other works and the extent to which it is reasonable to expect that the transporter will recover that expense from elsewhere.

(11)If and to the extent that regulations made by the Director with the consent of the Secretary of State so provide, subsection (10) above shall have effect as if—

(a)the reference in paragraph (d) to the laying of a new main, the enlarging of an existing main or the construction or enlarging of any other works required for the conveyance of gas included a reference to a new main which had previously been laid, an existing main which had previously been enlarged or any other works required for the conveyance of gas which had previously been constructed or enlarged;

(b)the reference to the expense to be incurred in laying or enlarging the main or constructing or enlarging the other works included a reference to the expense which had been so incurred; and

(c)the reference to the extent to which it is reasonable to expect that the transporter will recover that expense from elsewhere included a reference to the extent to which the transporter had been able so to recover that expense.

(12)Subject to subsection (13) below, in this section “relevant main”, in relation to a [F82gas transporter], means any distribution main in [F87an authorised area of his] which is being used for the purpose of giving a supply of gas to any premises in that area at a rate not exceeding 75,000 therms a year.

(13)Any pipe which—

(a)vests in and becomes the property of a [F82gas transporter] by virtue of subsection (6) above; and

(b)apart from this subsection, would be a relevant main for the purposes of this section,

shall be such a main if, and only if, it has been declared to be such a main by the transporter.

(14)A [F82gas transporter] shall make a declaration under subsection (13) above in respect of each pipe falling within that subsection which is fit for the purpose of being a relevant main; and a declaration under that subsection shall not be capable of being revoked.]

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Amendments (Textual)

F81S. 10 substituted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 4; S.I. 1996/218, art. 2

F82Words in s. 10(1)-(10)(12)-(13) substituted (1.10.2001) by 2000 c. 27, s. 108, Sch. 6 Pt. I para. 2(1); S.I. 2001/3266, art. 2, Sch. (subject to transitional provisions in arts. 3-20)

F83S. 10(3A) inserted (1.10.2001) by 2000 c. 27, s. 80(2); S.I. 2001/3266, arts. 1(2), 2, Sch. (subject to transitional provisions in arts. 3-20)

F84S. 10(5A) inserted (1.10.2001) by 2000 c. 27, s. 80(3); S.I. 2001/3266, arts. 1(2), 2, Sch. (subject to transitional provisions in arts. 3-20)

F85Words in s. 10(6)(b) inserted (1.10.2001) by 2000 c. 27, s. 80(4); S.I. 2001/3266, arts. 1(2), 2, Sch. (subject to transitional provisions in arts. 3-20)

F86Words in s. 10(6) substituted (1.10.2001) by 2000 c. 27, s. 80(5); S.I. 2001/3266, arts. 1(2), 2, Sch. (subject to transitional provisions in arts. 3-20)

F87Words in s. 10(12) substituted (1.10.2001) by 2000 c. 27, s. 80(6); S.I. 2001/3266, arts. 1(2), 2, Sch. (subject to transitional provisions in arts. 3-20)

[F8810A Restriction on use of certain pipe-lines for providing a supply.E+W+S

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

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

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

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

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

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

(4)In this section “pipe-line” has the same meaning as in the M3Pipe-lines Act 1962.]

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Amendments (Textual)

F88S. 10A inserted (1.10.2001) by 2000 c. 27, s. 77(1); S.I. 2001/3266, arts. 1(2), 2, Sch. (subject to transitional provisions in arts. 3-20)

Marginal Citations

[F8911 Power to require security.E+W+S

(1)Where any person requires a connection in pursuance of paragraph (a) of section 10(2) above and a pipe falls to be supplied and laid by the [F90gas transporter] in pursuance of that paragraph—

(a)the transporter may require that person to give him reasonable security for the payment to him of all money which may become due to him in respect of the supply and laying of the pipe; and

(b)if that person fails to give such security or, where any security given by him has become invalid or insufficient, fails to provide alternative or additional security, the transporter may if he thinks fit refuse to supply and lay the pipe for so long as the failure continues.

(2)Where any amount is deposited with a [F90gas transporter] by way of security in pursuance of this section, the transporter shall pay interest on that amount, at such rate as may from time to time be fixed by the transporter with the approval of the Director, in respect of the period during which it remains in the hands of the transporter.

(3)In this section “connection” shall be construed in accordance with section 10(2) above.]

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Amendments (Textual)

F89S. 11 substituted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 5; S.I. 1996/218, art. 2

F90Words in s. 11(1)(2) substituted (1.10.2001) by 2000 c. 27, s. 108, Sch. 6 Pt. I para. 2(1); S.I. 2001/3266, art. 2, Sch. (subject to transitional provisions in arts. 3-20)

[F91 Gas conveyed by Public Gas Transporters]E+W+S

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Amendments (Textual)

F91S. 12 and preceding cross-heading substituted for s. 12 (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 6; S.I. 1996/218, art. 2

12[F92 Methods of calculating therms.]E+W+S

(1)Except in prescribed cases, the number of therms or kilowatt hours conveyed by a [F93 gas transporter] to premises, or to pipe-line systems operated by other [F93gas transporters], shall be calculated in the prescribed manner—

(a)on the basis of calorific values of the gas determined by the transporter in accordance with regulations under this section, or so determined by another [F93gas transporter] and adopted by the transporter in accordance with such regulations; or

(b)if and to the extent that regulations under this section so provide and the transporter thinks fit, on the basis of declared calorific values of the gas;

and regulations under this section shall be made by the Director with the consent of the Secretary of State.

(2)In this Part—

  • calorific value”, in relation to any gas, means the number of megajoules (gross) which would be produced by—

    (a)

    the combustion of one cubic metre of the gas measured at a temperature of 15°C and a pressure of 1013.25 millibars; or

    (b)

    if regulations under this section so provide, the combustion of one kilogram of the gas,

    containing in either case, if the Director so determines, such an amount of water vapour as is specified in the determination;

  • declared calorific value”, in relation to any gas conveyed by a [F93gas transporter], means a calorific value declared by the transporter in accordance with regulations under this section, or so declared by another [F93gas transporter] and adopted by the transporter in accordance with such regulations.

(3)Regulations under this section may make provision as to the manner in which prescribed information with respect to the making of calculations in accordance with the regulations is to be made available to other licence holders and to the public.

(4)Regulations under this section made for the purposes of subsection (1)(a) above may make provision—

(a)for requiring determinations of calorific values of gas conveyed by [F93gas transporters] to be made on the basis of samples of gas taken at such places or premises, at such times and in such manner as the Director may direct;

(b)for requiring such determinations to be made at such places or premises, at such times and in such manner as the Director may direct;

(c)as to the manner in which the results of such determinations are to be made available to other licence holders and to the public;

(d)for requiring such premises, apparatus and equipment as the Director may direct to be provided and maintained by [F93gas transporters] for the purpose of making such determinations;

(e)for requiring [F93gas transporters] to carry out tests of apparatus and equipment so provided and maintained by them; and

(f)for requiring the results of such tests to be notified to the Director or to any person appointed under section 13(1) below, and to be made available to other licence holders and to the public.

(5)Regulations under this section made for the purposes of subsection (1)(b) above may make provision—

(a)for requiring declarations of calorific values of gas conveyed by [F93gas transporters] to be made at such times and in such manner as the Director may direct;

(b)as to the times when such declarations are to take effect, and as to the manner in which the calorific values declared are to be made available to other licence holders and to the public;

(c)for imposing requirements on [F93gas transporters] as to the correlation between—

(i)the calorific values of the gas conveyed by them for any period; and

(ii)the calorific values declared by them for that period;

(d)for requiring [F93gas transporters] to carry out tests of gas for the purpose of ascertaining whether they are complying with the requirements of regulations made by virtue of paragraph (c) above;

(e)for requiring such tests to be carried out at such places or premises, at such times and in such manner as the Director may direct; and

(f)for requiring the results of such tests to be notified to the Director or to any person appointed under section 13(1) below, and to be made available to other licence holders and to the public.

(6)Subject to subsection (7) below, the Director may by notice in writing require a [F93gas transporter] to give to the Director, or to any person appointed by him for the purpose, within such time and at such place as may be specified in the notice, such information as the Director may reasonably require for the purpose of making regulations under this section or section 13 below or of giving directions under such regulations.

(7)A [F93gas transporter] shall not be required under subsection (6) above to give any information which he could not be compelled to give in evidence in civil proceedings before the court; and in this subsection “the court” means—

(a)in relation to England and Wales, the High Court;

(b)in relation to Scotland, the Court of Session.

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Amendments (Textual)

F92S. 12 and preceding cross-heading substituted for s. 12 (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 6; S.I. 1996/218, art. 2

F93Words in s. 12 substituted (1.10.2001) by 2000 c. 27, s. 108, Sch. 6 Pt. I para. 2(1); S.I. 2001/3266, arts. 1(2), 2, Sch. (subject to transitional provisions in arts. 3-20)

[F9413 Calorific values: tests of apparatus etc.E+W+S

(1)The Director shall appoint competent and impartial persons—

(a)to carry out tests of apparatus and equipment provided and maintained by [F95gas transporters] in pursuance of regulations made by virtue of subsection (4)(d) of section 12 above for the purpose of ascertaining whether they comply with the regulations;

(b)to carry out tests of gas conveyed by [F95gas transporters] where the number of therms or kilowatt hours falls to be calculated in accordance with subsection (1)(b) of that section for the purpose of ascertaining whether the transporters are complying with the requirements of regulations made by virtue of subsection (5)(c) of that section; and

(c)generally to assist the Director in exercising his functions under, or under regulations made under, this section or that section.

(2)Regulations under this section, which shall be made by the Director with the consent of the Secretary of State, may make provision—

(a)for requiring such tests as are mentioned in subsection (1)(b) above to be carried out at such places or premises as the Director may direct;

(b)for requiring such premises, apparatus and equipment as the Director may direct to be provided and maintained by [F95gas transporters] for the purpose of carrying out such tests;

(c)for requiring samples of gas to be taken by [F95gas transporters] at such places or premises, at such times and in such manner as the Director may direct; and

(d)for requiring samples of gas so taken to be provided by [F95gas transporters], for the purpose of carrying out such tests, at such places or premises, at such times and in such manner as the Director may direct.

(3)Regulations under this section may make provision—

(a)for persons representing the public gas transporter concerned to be present during the carrying out of such tests as are mentioned in subsection (1) above;

(b)as to the manner in which the results of such tests are to be made available to other licence holders and to the public; and

(c)for conferring powers of entry on property owned or occupied by [F95gas transporters] for the purpose of carrying out such tests and otherwise for the purposes of this section or section 12 above.

(4)There shall be paid out of money provided by Parliament to persons appointed under subsection (1) above who are members of the Director’s staff such remuneration and such allowances as may be determined by the Director with the approval of the Treasury, and such pensions as may be so determined may be paid out of money provided by Parliament to or in respect of such persons.

(5)Every person who is a [F95gas transporter] during any period shall pay to the Director such proportion (if any) as the Director may determine of—

(a)any sums paid by him under subsection (4) above in respect of that period; and

(b)such part of his other expenses for that period as he may with the consent of the Treasury determine to be attributable to his functions under section 12 above or this section;

and any liability under this subsection to pay to the Director sums on account of pensions (whether paid by him under subsection (4) above or otherwise) shall, if the Director so determines, be satisfied by way of contributions calculated, at such rate as may be determined by the Treasury, by reference to remuneration.

(6)Any sums received by the Director under this section shall be paid into the Consolidated Fund.]

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Amendments (Textual)

F94S. 13 substituted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 7; S.I. 1996/218, art. 2

F95Words in s. 13 substituted (1.10.2001) by 2000 c. 27, s. 108, Sch. 6 Pt. I para. 2(1); S.I. 2001/3266, arts. 1(2), 2, Sch. (subject to transitional provisions in arts. 3-20)

F9614. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .E+W+S

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Amendments (Textual)

F9714A. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .E+W+S

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Amendments (Textual)

F9815. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .E+W+S

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Amendments (Textual)

F98S. 15 repealed (1.3.1996) by 1995 c. 45, ss. 9(3), 17(5), Sch. 6; S.I. 1996/218, art. 2

Prospective

[F9915A Billing disputes.E+W+S

(1)The Secretary of State may by regulations make provision for billing disputes to be referred to the Director for determination in accordance with the regulations.

(2)In this section “billing dispute” means a dispute between a [F100gas supplier and a [F101 customer]] of his concerning the amount of the charge which the supplier is entitled to recover from the customer in connection with the provision of gas supply services.

(3)Regulations under this section may only be made after consulting—

(a)the Director; and

(b)persons or bodies appearing to the Secretary of State to be representative of persons likely to be affected by the regulations.

(4)Regulations under this section may provide that, where a billing dispute is referred to the Director, he may either—

(a)determine the dispute, or

(b)appoint an arbitrator (or in Scotland an arbiter) to determine it.

(5)Any person determining any billing dispute in accordance with regulations under this section shall, in such manner as may be specified in the regulations, give his reasons for reaching his decision with respect to the dispute.

(6)Regulations under this section may provide—

(a)that disputes may be referred to the Director under this section only by prescribed persons; and

(b)for any determination to be final and enforceable—

(i)in England and Wales, as if it were a judgment of a county court; and

(ii)in Scotland, as if it were an extract registered decree arbitral bearing a warrant for execution issued by the sheriff.

(7)Except in such circumstances (if any) as may be prescribed—

(a)the Director or an arbitrator (or in Scotland an arbiter) appointed by him shall not determine any billing dispute which is the subject of proceedings before, or with respect to which judgment has been given by, any court; and

(b)neither party to any billing dispute which has been referred to the Director for determination in accordance with regulations under this section shall commence proceedings before any court in respect of that dispute pending its determination in accordance with the regulations.

(8)No [F102gas supplier] may commence proceedings before any court in respect of any charge in connection with the provision by him of gas supply services unless, not less than 28 days before doing so, the [F101customer] concerned was informed by him, in such form and manner as may be prescribed, of—

(a)his intention to commence proceedings;

(b)the customer’s rights by virtue of this section; and

(c)such other matters (if any) as may be prescribed.

(9)The powers of the Director under section 38 below shall also be exercisable for any purpose connected with the determination of any dispute referred to him in accordance with regulations made under this section.]

(10). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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Amendments (Textual)

F99S. 15A inserted (prosp.) by 1992 c. 43, ss. 17, 56(2)

F100Words in s. 15A(2) substituted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 10(1); S.I. 1996/218, art. 2

F101Words in s. 15A substituted (1.10.2001) by 2000 c. 27, s. 108, Sch. 6, Pt. I para. 7(a); S.I. 2001/3266, arts. 1(2), 2, Sch. (subject to transitional provisions in arts. 3-20)

F102Words in s. 15A(8) substituted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 10(2)(a); S.I. 1996/218, art. 2

[F10316 Standards of gas quality.E+W+S

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

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

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

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

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

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

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

(4)Regulations under this section may make provision—

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

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

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

(5)Regulations under this section may make provision—

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

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

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

(6)Regulations under this section may make provision—

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

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

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

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

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

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

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

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

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

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

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

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

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

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Amendments (Textual)

F103S. 16 inserted (1.10.2001) by 2000 c. 27, s. 101; S.I. 2001/3266, arts. 1(2), 2, Sch. (subject to transitional provisions in arts. 3-20)

F10415B. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .E+W+S

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Amendments (Textual)

[F105 Gas conveyed by public gas transporters and others]E+W+S

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Amendments (Textual)

F105S. 16 and cross-heading preceding it substituted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 12; S.I. 1996/218, art. 2

F10616. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .E+W+S

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Amendments (Textual)

F106S. 16 repealed (1.4.1996) by S.I. 1996/551, reg. 12(1)

[F10717 Meter testing and stamping.E+W+S

(1)No meter shall be used for the purpose of ascertaining the quantity of gas supplied through pipes to any person unless it is stamped either by, or on the authority of, a meter examiner appointed under this section or in such other manner as may be authorised by regulations under this section.

(2)Subject to subsections (3) to (5) below, it shall be the duty of a meter examiner who is [F108employed in the civil service of the State], on being required to do so by any person and on payment of the requisite fee—

(a)to examine any meter used or intended to be used for ascertaining the quantity of gas supplied to any person; and

(b)to stamp, or authorise the stamping of, that meter.

(3)A meter examiner shall not stamp, or authorise the stamping of, any meter unless he is satisfied that it is of such pattern and construction and is marked in such manner as is approved by the Director and that the meter conforms with such standards as may be prescribed for the purposes of this subsection.

(4)A meter examiner may stamp or authorise another person to stamp a meter, notwithstanding that he has not himself examined it, if—

(a)the meter was manufactured or repaired by the person submitting it to the examiner;

(b)that person has obtained the consent of the Director to his submission; and

(c)any conditions subject to which the consent was given have been satisfied.

(5)A meter examiner may authorise another person to stamp a meter, notwithstanding that he has not himself examined it, if—

(a)the meter was manufactured or repaired by that person;

(b)that person has obtained the consent of the Director to his stamping of the meter; and

(c)any conditions subject to which the consent was given have been satisfied.

(6)The Director shall appoint competent and impartial persons as meter examiners for the purposes of this section.

(7)There shall be paid out of money provided by Parliament to meter examiners who are [F109employed in the civil service of the State] such remuneration and such allowances as may be determined by the Director with the approval of the Treasury, and such pensions as may be so determined may be paid out of money provided by Parliament to or in respect of such examiners.

[F110(7A)The Secretary of State may pay, out of money provided by Parliament, to meter examiners who are not employed in the civil service of the State or to any employer of such examiners—

(a)sums in connection with the performance by such examiners of functions conferred by or under this section or gas meter regulations (within the meaning of section 92 of the Energy Act 2008), and

(b)sums in respect of any pension payable to or in respect of such examiners.]

(8)All fees payable to meter examiners who are [F111employed in the civil service of the State] for the performance of functions conferred by or under this section shall be paid to the Director; and any sums received by him under this subsection shall be paid into the Consolidated Fund.

(9)Regulations under this section, which shall be made by the Director F112... , may make provision—

(a)for re-examining meters already stamped, and for the cancellation of stamps in the case of meters which no longer conform with the prescribed standards and in such other circumstances as may be prescribed;

(b)for requiring meters to be periodically overhauled; and

(c)for the revocation of any approval given by the Director to any particular pattern or construction of meter, and for requiring existing meters of that pattern or construction to be replaced within such period as may be prescribed for the purposes of this subsection.

(10)The fees to be paid to meter examiners who are [F113employed in the civil service of the State] for the performance of functions conferred by or under this section, and the persons by whom they are to be paid, shall be such as the Director may, with the approval of the Treasury, from time to time determine; and a determination under this subsection may—

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

(b)make such supplementary, incidental or transitional provision as the Director considers necessary or expedient.

(11)If any person supplies gas through a meter which has not been stamped under this section, he shall be guilty of an offence and liable on summary conviction to a fine not exceeding level 3 on the standard scale.

(12)Where the commission by any person of an offence under subsection (11) above is due to the act or default of some other person, that other person shall be guilty of the offence; and a person may be charged with and convicted of the offence by virtue of this subsection whether or not proceedings are taken against the first-mentioned person.

(13)In any proceedings for an offence under subsection (11) above it shall be a defence for the person charged to prove that he took all reasonable steps and exercised all due diligence to avoid committing the offence.

(14)The preceding provisions of this section shall not have effect in relation to the supply of gas to a person under any agreement providing for the quantity of gas supplied to him to be ascertained by a meter designed for rates of flow which, if measured at a temperature of 15°C and a pressure of 1013.25 millibars, would exceed 1600 cubic metres an hour.

(15)Regulations under this section may provide that subsection (14) above shall have effect as if for the number of cubic metres an hour which is for the time being applicable for the purposes of that subsection there were substituted such lower number of cubic metres an hour as the Director considers appropriate.]

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Amendments (Textual)

F107S. 17 substituted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 13; S.I. 1996/218, art. 2

F108Words in s. 17(2) substituted (1.4.2009) by Energy Act 2008 (c. 32), ss. 93(2), 110(2); S.I. 2009/45, art. 3(b)(i)

F109Words in s. 17(7) substituted (1.4.2009) by Energy Act 2008 (c. 32), ss. 93(3), 110(2); S.I. 2009/45, art. 3(b)(i)

F111Words in s. 17(8) substituted (1.4.2009) by Energy Act 2008 (c. 32), ss. 93(3), 110(2); S.I. 2009/45, art. 3(b)(i)

F112Words in s. 17(9) repealed (1.4.2009) by Energy Act 2008 (c. 32), ss. 93(5), 110(2), Sch. 6; S.I. 2009/45, art. 3(b)(i)

F113Words in s. 17(10) substituted (1.4.2009) by Energy Act 2008 (c. 32), ss. 93(3), 110(2); S.I. 2009/45, art. 3(b)(i)

Modifications etc. (not altering text)

18 Safety regulations.E+W+S

F114(1). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(2)The Secretary of State may by regulations make provision for empowering any officer authorised by the relevant authority—

(a)to enter any premises in which there is a service pipe connected with a gas main, for the purpose of inspecting any gas fitting on the premises, any flue or means of ventilation used in connection with any such gas fitting, or [F115any part of the gas system on the premises, that is to say,]any service pipe or other apparatus (not being a gas fitting) which is on the premises and is used for the [F115conveyance or]supply of gas or is connected with a gas main;

(b)where he so enters any such premises, to examine or apply any test to any such object as is mentioned in paragraph (a) above and (where the object is a gas fitting) to verify what supply of air is available for it; and

(c)where in his opinion it is necessary to do so for the purpose of averting danger to life or property, and notwithstanding any contract previously existing, to disconnect and seal off any gas fitting or any part of the [F116gas system on the premises, or disconnect the premises or, if the premises are not connected, to signify the refusal of the relevant authority to convey gas or, as the case may be, allow gas to be conveyed to the premises].

(3)Where any regulations under subsection (2) above confer any power in accordance with paragraph (c) of that subsection, the regulations shall also include provision—

(a)for securing that, where any such power is exercised, the consumer will be notified as to the nature of the defect or other circumstances in consequence of which it has been exercised;

(b)for enabling any consumer so notified to appeal to the Secretary of State on the grounds that the defect or other circumstances in question did not constitute a danger such as to justify the action taken in the exercise of the power, or did not exist or have ceased to exist; and

(c)for enabling the Secretary of State to give such directions as may in accordance with the regulations be determined by him to be appropriate in consequence of any such appeal.

(4)Regulations made under subsection (2) above may make provision for prohibiting any person, except with the consent of the relevant authority or in pursuance of any directions given by the Secretary of State as mentioned in subsection (3)(c) above, from—

(a)reconnecting any gas fitting or [F117any part of any gas system] which has been disconnected by or on behalf of the relevant authority in exercise of a power conferred by the regulations; or

(b)[F118reconnecting any premises which have been disconnected] by or on behalf of the relevant authority in the exercise of any such power; or

(c)causing gas from a gas main to be [F119conveyed] to any premises where in pursuance of the regulations the refusal of the relevant authority to [F120convey gas or, as the case may be, allow gas to be conveyed] to those premises has been signified and that refusal has not been withdrawn.

(5)Where in pursuance of any powers conferred by regulations made under subsection (2) above, entry is made on any premises by an officer authorised by the relevant authority—

(a)the officer shall ensure that the premises are left no less secure by reason of the entry; and

(b)the relevant authority shall make good, or pay compensation for, any damage caused by the officer, or by any person accompanying him in entering the premises, in taking any action therein authorised by the regulations, or in making the premises secure.

(6)Any officer exercising powers of entry conferred by regulations made under subsection (2) above may be accompanied by such persons as may be necessary or expedient for the purpose for which entry is made, or for the purposes of subsection (5) above.

(7)If any person intentionally obstructs any officer exercising powers of entry conferred by regulations made under subsection (2) above, he shall be guilty of an offence and liable on summary conviction to a fine not exceeding level 3 on the standard scale.

(8)The M4Rights of Entry (Gas and Electricity Boards) Act 1954 (entry under a justice’s warrant) shall apply in relation to any powers of entry conferred by regulations made under subsection (2) above as if [F121any reference to a gas operator were a reference to the relevant authority].

[F122(9)In this section “the relevant authority”—

(a)in relation to dangers arising from the conveyance of gas by a [F123gas transporter], or from the use of gas conveyed by such a transporter, means that transporter; and

(b)in relation to dangers arising from the conveyance of gas by a person other than a [F123gas transporter], or from the use of gas conveyed by such a person, means the Secretary of State.

(10)Where the relevant authority is a [F123gas transporter], any reference in this section to any officer authorised by the authority includes a reference to any officer authorised by another such transporter with whom the authority has made arrangements for officers authorised by the other transporter to discharge any functions of the authority under this section.

(11)Except in cases of emergency, no officer shall be authorised by a [F123gas transporter] to exercise any powers of entry conferred by regulations under this section unless the transporter has taken all reasonable steps to ensure that he is a fit and proper person to exercise those powers.]

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Amendments (Textual)

F114S. 18(1) repealed (6.3.1992) by Offshore Safety Act 1992 (c. 15), ss. 3(3)(a), 7(2), Sch. 2.

F115Words in s. 18(2)(a) inserted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 14(1)(a); S.I. 1996/218, art. 2

F116Words in s. 18(2)(c) substituted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 14(1)(b); S.I. 1996/218, art. 2

F117Words in s. 18(4)(a) substituted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 14(2)(a); S.I. 1996/218, art. 2

F118Words in s. 18(4)(b) substituted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 14(2)(b); S.I. 1996/218, art. 2

F119Word in s. 18(4)(c) substituted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 14(2)(c); S.I. 1996/218, art. 2

F120Words in s. 18(4)(c) substituted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 14(2)(c); S.I. 1996/218, art. 2

F121Words in s. 18(8) substituted for s. 18(8)(a)(b) (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 14(3); S.I. 1996/218, art. 2

F122S. 18(9)-(11) substituted for s. 18(9) (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 14(4); S.I. 1996/218, art. 2

F123Words in s. 18 substituted (1.10.2001) by 2000 c. 27, s. 108, Sch. 6 Pt. I para. 2(1); S.I. 2001/3266, art. 2, Sch. (subject to transitional provisions in arts. 3-20)

Marginal Citations

[F12418A Gas escape regulations.E+W+S

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

(a)for empowering any officer authorised by a [F125gas transporter], if the transporter has reasonable cause to suspect—

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

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

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

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

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

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

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

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

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

(b)any reference to the relevant authority were a reference to a [F125gas transporter];

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

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

(3)The M5Rights of Entry (Gas and Electricity Boards) Act 1954 (entry under a justice’s warrant) shall apply in relation to any powers of entry conferred by regulations made under subsection (1) above.

(4)Any reference in this section to any officer authorised by a [F125gas transporter] includes a reference to any officer authorised by another such transporter with whom the transporter has made arrangements for officers authorised by the other transporter to discharge any functions under this section of officers authorised by the transporter.]

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Amendments (Textual)

F124S. 18A inserted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 15; S.I. 1996/218, art. 2

F125Words in s. 18A substituted (1.10.2001) by 2000 c. 27, s. 108, Sch. 6 Pt. I para. 2(1); S.I. 2001/3266, art. 2, Sch. (subject to transitional provisions in arts. 3-20)

Marginal Citations

[F126 Use by other persons of public gas transporter’s pipe-line systems]E+W+S

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Amendments (Textual)

F126S. 19 and preceding cross-heading substituted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 16; S.I. 1996/218, art. 2

19[F127 Acquisition of rights to use pipe-line systems.]E+W+S

(1)In the case of a pipe-line system operated by a [F128gas transporter], any person may, after giving the transporter not less than 28 days’ notice, apply to the Director for directions under this section which would secure to the applicant a right of a description specified in the application to have conveyed by the system gas which—

(a)is of a kind so specified; and

(b)is of, or of a kind similar to, the kind which the system is designed to convey.

(2)Where an application is made under subsection (1) above, it shall be the duty of the Director—

(a)to decide whether the application is to be adjourned (so as to enable negotiations or further negotiations to take place), considered further or rejected;

(b)to give notice of his decision to the applicant;

(c)in the case of a decision that the application is to be considered further, to give to the transporter, to the Health and Safety Executive and to any person who has a right to have gas conveyed by the pipe-line system, notice that the application is to be so considered and an opportunity of being heard about the matter.

(3)Where, after further considering an application under subsection (1) above, the Director is satisfied that the giving of directions under this section would not prejudice the efficient operation of the pipe-line system, or the conveyance by the system of—

(a)the quantities of gas which the [F128gas transporter] requires or may reasonably be expected to require to be conveyed by the system to enable the transporter to comply with the conditions of his licence and to perform his contractual obligations;

(b)the quantities of gas which any person who has a right to have gas conveyed by the system is entitled to require to be so conveyed in the exercise of that right,

the Director may give such directions to the transporter.

(4)Directions under this section may—

(a)specify the terms on which the Director considers the [F128gas transporter] should enter into an agreement with the applicant for all or any of the following purposes—

(i)for securing to the applicant the right to have conveyed by the pipe-line system, for the period specified in the directions and in the quantities so specified or determined by or under the directions, gas which is of a kind so specified;

(ii)for securing that the exercise of that right is not prevented or impeded;

(iii)for regulating the charges which may be made for the conveyance of gas by virtue of that right;

(iv)for securing to the applicant such ancillary or incidental rights as the Director considers necessary or expedient, which may include the right to have a pipe-line of his connected to the pipe-line system by the transporter;

(b)specify the sums or the method of determining the sums which the Director considers should be paid by way of consideration for any such right; and

(c)require the transporter, if the applicant pays or agrees to pay those sums within a period specified in that behalf in the directions, to enter into an agreement with him on the terms so specified.

(5)In giving any directions under this section, the Director shall apply the principle that the [F128gas transporter] should be entitled to receive by way of charges for the conveyance of gas by virtue of the right—

(a)the appropriate proportion of the costs incurred by the transporter in administering, maintaining and operating his pipe-line system; and

(b)a return equal to the appropriate proportion of the return received by the transporter (otherwise than by virtue of the right) on the capital value of the system (including so much of that return as is set aside to meet the need from time to time to renew the system).

(6)In subsection (5) above “the appropriate proportion” means such proportion as properly—

(a)reflects the use made of the [F128gas transporter’s] pipe-line system by virtue of the right as compared with the use made of that system for other purposes; and

(b)takes into account the sums paid by way of consideration for the right and any sums paid in respect of the pipe-line system (whether by the applicant or by any other person) in pursuance of directions under section 21(1) below.

(7)Any reference in this section to a right to have gas of any kind conveyed by a pipe-line system includes a reference to a right to introduce into, or take out of, such a system gas of that kind.

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Amendments (Textual)

F127S. 19 and preceding cross-heading substituted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 16; S.I. 1996/218, art. 2

F128Words in s. 19 substituted (1.10.2001) by 2000 c. 27, s. 108, Sch. 6 Pt. I para. 2(1)(2); S.I. 2001/3266, art. 2, Sch. (subject to transitional provisions in arts. 3-20)

Modifications etc. (not altering text)

C33S. 19 applied (with modifications) (1.3.1996) by S.I. 1996/399, art. 4(2)

C34S. 19(2)(c) applied (with modifications) (1.3.1996) by S.I. 1996/399, art. 4(4)(c)

[F12919A Application of section 19B to storage facilities.E+W+S

(1)Section 19B applies to [F130a storage facility unless, or except to the extent that, its capacity is exempt under this section] .

(2)[F131A person who is or expects to be an owner] of a storage facility may apply in writing to the Director for an exemption [F132with respect to the facility] .

(3)An exemption shall be given in writing and may be given—

(a)so as to have effect for an indefinite period or for a period specified in, or determined under, the exemption;

(b)unconditionally or subject to such conditions as the Director considers appropriate.

[F133(c)so as to have effect—

(i)in the case of a facility other than a new facility, in relation to the whole of the capacity of the facility; or

(ii)in the case of a new facility, in relation to the whole of the capacity of the facility or any significant increase in the capacity of the facility.]

[F134(4) An exemption may contain provision for its revocation.]

[F135(5)The Authority shall give an exemption with respect to a facility (other than a new facility) where it is satisfied that use of the facility by other persons is not necessary for the operation of an economically efficient gas market.

(6)The Authority shall give an exemption with respect to a new facility where it is satisfied that either—

(a)use of the facility by other persons is not necessary for the operation of an economically efficient gas market; or

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

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

(8)The requirements of this subsection are that—

(a)the facility or (as the case may be) the significant increase in its capacity will promote security of supply;

(b)the level of risk is such that the investment to construct the facility or (as the case may be) to modify the facility to provide for a significant increase in its capacity would not be or would not have been made without the exemption;

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

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

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

(f)the Commission of the European Communities is or will be content with the exemption.

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

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

  • the facility is or is to be modified to provide for a significant increase in its capacity;

  • the exemption has effect only in relation to that increase in its capacity; and

  • no previous exemption has been given by virtue of subsection (6)(b) in relation to that increase in its capacity.

(11)The Authority shall publish its decision to give or refuse to give an exemption together with the reasons for its decision in such manner as it considers appropriate.]]

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Amendments (Textual)

F129Ss. 19A-19E inserted (10.8.2000) by S.I. 2000/1937, reg. 2(2), Sch. 2 para. 1

[19BF136 Acquisition of rights to use storage facilities.E+W+S

(1)The owner of a storage facility to which this section applies (a “relevant facility”)—

(a)shall publish at least once in every year the main commercial conditions relating to the grant to another person of a right to have gas [F137or liquid gas] stored in the facility on that person’s behalf; and

(b)shall publish any changes to the published conditions as soon as they become effective.

(2)In subsection (1) “year” means any year ending with 9th August.

(3)The owner of a relevant facility shall ensure that the conditions which he is required to publish under subsection (1) do not discriminate against any applicants or descriptions of applicants, or any potential applicants or descriptions of potential applicants, for a right to have gas [F137or liquid gas] stored in the facility.

(4)Any person who seeks a right to have gas [F137or liquid gas] stored on his behalf in a relevant facility (“the applicant”) shall, before making an application to the Director under subsection (8), apply to the owner of the facility for the right.

(5)An application under subsection (4) shall be made by giving notice to the owner specifying what is being sought.

(6)Such a notice shall, in particular, specify—

(a)the period during which the gas [F137or liquid gas] is to be stored in the facility;

(b)the kind of gas [F137or liquid gas] to be stored (which must be of, or similar to, the kind which the facility is designed to store); and

(c)the quantities of gas [F137or liquid gas] to be stored.

(7)Where an applicant gives notice under subsection (5), he and the owner of the facility shall negotiate in good faith and endeavour to reach agreement on the application.

(8)If the owner and the applicant do not reach any such agreement, the applicant may apply to the Director for directions under subsection (11) which would secure to the applicant the right specified in the notice under subsection (5).

(9)The Director shall not entertain an application under subsection (8) unless he is satisfied that the parties have had a reasonable time in which to fulfil their duties under subsection (7).

(10)Where a person applies to the Director under subsection (8) and the Director is satisfied as mentioned in subsection (9), the Director shall—

(a)decide whether the application is to be adjourned (so as to enable further negotiations to take place), considered further or rejected;

(b)give notice of his decision to the applicant; and

(c)in the case of a decision that the application is to be considered further, give to the owner of the facility, the Health and Safety Executive and any person who has a right to have gas [F137or liquid gas] stored in the facility notice that the application is to be so considered and an opportunity of being heard on the matter.

(11)Where, after considering an application under subsection (8), the Director is satisfied that the giving of directions under this subsection would not prejudice the efficient operation of the facility, or the storage in the facility of—

(a)the quantities of gas [F137or liquid gas] which the owner of the facility requires or may reasonably be expected to require to be stored in the facility; and

(b)the quantities of gas [F137or liquid gas] which any person who has a right to have gas [F137or liquid gas] stored in the facility is entitled to require to be so stored in the exercise of that right;

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

(12)Directions under subsection (11) may—

(a)specify the terms on which the Director considers the owner of the facility should enter into an agreement with the applicant for all or any of the following purposes—

(i)for securing to the applicant the right to have stored in the facility, for the period specified in the directions and in the quantities so specified or determined by or under the directions, gas [F137or liquid gas] which is of a kind so specified;

(ii)for securing that the exercise of that right is not prevented or impeded;

(iii)for regulating the charges which may be made for the storage of gas [F137or liquid gas] by virtue of that right;

(iv)for securing to the applicant such ancillary or incidental rights as the Director considers necessary or expedient (which may include, in particular, a right to have a pipeline of his connected to the facility by the owner);

(b)specify the sums or the method of determining the sums which the Director considers should be paid by way of consideration for any such right; and

(c)require the owner, if the applicant pays or agrees to pay those sums within a period specified in that behalf in the directions, to enter into an agreement with him on the terms so specified.]

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Amendments (Textual)

F136Ss. 19A-19E inserted (10.8.2000) by S.I. 2000/1937, reg. 2(2), Sch. 2 para. 1

[19CF138 Application of section 19D to LNG facilities.E+W+S

(1)Section 19D applies to [F139an LNG import facility unless, or except to the extent that, its capacity is exempt under this section].

(2)[F140A person who is or expects to be an owner of an LNG import facility] may apply in writing to the Director for an exemption [F141with respect to the facility].

(3)An exemption shall be given in writing and may be given—

(a)so as to have effect for an indefinite period or for a period specified in, or determined under, the exemption;

(b)unconditionally or subject to such conditions as the Director considers appropriate.

[F142(c)so as to have effect in relation to the whole of the capacity of the facility or any significant increase in the capacity of the facility.]

[F143(4) An exemption may contain provision for its revocation.]

[F144(5)The Authority shall give an exemption with respect to a facility where it is satisfied that the requirements of subsection (7) are met.]

(6)In respect of a facility which is or is to be modified to provide for a significant increase in its capacity, an exemption by virtue of subsection (5) may only be given in relation to that increase in its capacity.

(7)The requirements of this subsection are that—

(a)the facility or (as the case may be) the significant increase in its capacity will promote security of supply;

(b)the level of risk is such that the investment to construct the facility or (as the case may be) to modify the facility to provide for a significant increase in its capacity would not be or would not have been made without the exemption;

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

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

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

(f)the Commission of the European Communities is or will be content with the exemption.”

(8)Subject to subsection (9), an exemption may not be given by virtue of subsection (5) more than once in respect of the same facility.

(9)Subsection (8) does not prevent a further exemption being given by virtue of subsection (5) in respect of a facility if—

  • the facility is or is to be modified to provide for a significant increase in its capacity;

  • the exemption has effect only in relation to that increase in its capacity; and

  • no previous exemption has been given by virtue of subsection (5) in relation to that increase in its capacity.

(10)The Authority shall publish its decision to give or refuse to give an exemption together with the reasons for its decision in such manner as it considers appropriate.]

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Amendments (Textual)

F138Ss. 19A-19E inserted (10.8.2000) by S.I. 2000/1937, reg. 2(2), Sch. 2 para. 1

F144Ss. 19C(5)-(10) substituted for s. 19C(5) (26.8.2004) by The Gas (Third Party Access) Regulations 2004 (S.I. 2004/2043), reg. 1, Sch. 2 para. 3(f)

[19DF145 Acquisition of rights to use LNG facilities.E+W+S

(1)[F146Subject to subsection (2A), the owner of an LNG import facility] to which this section applies (a “relevant facility”)—

(a)shall publish [F147prior to their entry into force] the main commercial conditions relating to the grant to another person of a right to have [F147liquid gas] treated in the facility on that person’s behalf; and

(b)shall publish any changes to the published conditions as soon as they become effective.

F148(2). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F149(2A)The cost or the method of determining the cost of acquiring the right to have liquid gas treated in a relevant facility and any changes thereto must be approved by the Authority prior to their publication; and such approval may be given on condition that certain modifications are made to the cost or methodology.

(2B)Before the owner of a relevant facility seeks approval under subsection (2A) he must carry out such consultation as the Authority may require.]

(3)The owner of a relevant facility shall ensure that the conditions which he is required to publish under subsection (1) do not discriminate against any applicants or descriptions of applicants, or any potential applicants or descriptions of potential applicants, for a right to have [F150liquid gas] treated in the facility.

(4)Any person who seeks a right to have [F151liquid gas] treated on his behalf in a relevant facility (“the applicant”) shall, before making an application to the Director under subsection (8), apply to the owner of the facility for the right.

(5)An application under subsection (4) shall be made by giving notice to the owner specifying what is being sought.

(6)Such a notice shall, in particular, specify—

F152(a). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b)the kind of [F153liquid gas] to be treated (which must be of, or similar to, the kind which the facility is designed to treat); and

(c)the quantities of [F154liquid gas] to be treated.

[F155(7)The owner shall notify the applicant of his decision giving reasons for any refusal.]

(8)If the owner [F156refuses the application] , the applicant may apply to the Director for directions under subsection (11) which would secure to the applicant the right specified in the notice under subsection (5).

F157(9). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(10)[F158Where a person applies to the Authority under subsection (8), the Authority shall—]

[F159(a)decide whether to give directions under subsection (11), to consider the application further or to reject the application]

(b)give notice of his decision to the applicant; and

[F160(c)in the case of a decision that the application is to be considered further—

(i)give to the owner of the facility, the Health and Safety Executive and any person who has a right to have liquid gas treated in the facility notice that the application is to be so considered and an opportunity of being heard about the matter; and

(ii)after so considering the matter, decide whether to give directions under subsection (11) or to reject the application and give notice of its decision to the applicant.]

(11)Where, after considering an application under subsection (8), the Director is satisfied that the giving of directions under this subsection would not prejudice the efficient operation of the facility, or the treatment in the facility of—

(a)the quantities of [F161liquid gas] which the owner of the facility requires or may reasonably be expected to require to be treated in the facility; and

(b)the quantities of [F161liquid gas] which any person who has a right to have [F161liquid gas] treated in the facility is entitled to require to be so treated in the exercise of that right;

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

(12)Directions under subsection (11) may—

(a)specify the terms on which the Director considers the owner of the facility should enter into an agreement with the applicant for all or any of the following purposes—

(i)for securing to the applicant the right to have treated in the facility, F162... and in the quantities so specified or determined by or under the directions, [F163liquid gas] which is of a kind so specified;

(ii)for securing that the exercise of that right is not prevented or impeded;

(iii)for regulating the charges which may be made for the treatment of [F164liquid gas] by virtue of that right;

(iv)for securing to the applicant such ancillary or incidental rights as the Director considers necessary or expedient F165...;

(b)specify the sums or the method of determining the sums which the Director considers should be paid by way of consideration for any such right; and

(c)require the owner, if the applicant pays or agrees to pay those sums within a period specified in that behalf in the directions, to enter into an agreement with him on the terms so specified.]

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Amendments (Textual)

F145Ss. 19A-19E inserted (10.8.2000) by S.I. 2000/1937, reg. 2(2), Sch. 2 para. 1

F148S. 19D(2) ceased to have effect (26.8.2004) by virtue of The Gas (Third Party Access) Regulations 2004 (S.I. 2004/2043), reg. 1, Sch. 2 para. 4(c)

F152S. 19D(6)(a) ceased to have effect (26.8.2004) by virtue of The Gas (Third Party Access) Regulations 2004 (S.I. 2004/2043), reg. 1, Sch. 2 para. 4(f)

F157S. 19D(9) ceased to have effect (26.8.2004) by virtue of The Gas (Third Party Access) Regulations 2004 (S.I. 2004/2043), reg. 1, Sch. 2 para. 4(j)

F162Words in s. 19D(12)(a)(i) omitted (26.8.2004) by virtue of The Gas (Third Party Access) Regulations 2004 (S.I. 2004/2043), reg. 1, Sch. 2 para. 4(o)(i)

F164Words in s. 19D(12)(a)(iii) substituted (26.8.2004) by virtue of The Gas (Third Party Access) Regulations 2004 (S.I. 2004/2043), reg. 1, Sch. 2 para. 4(p)

F165Words in s. 19D(12)(a)(iv) omitted (26.8.2004) by virtue of The Gas (Third Party Access) Regulations 2004 (S.I. 2004/2043), reg. 1, Sch. 2 para. 4(q)

[F16619DAProvision of informationE+W+S

A person who is or expects to be the owner of an LNG import facility shall provide the Authority with such information in such manner and at such times as the Authority may reasonably require to facilitate the performance of its functions under this Act.]

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Amendments (Textual)

[F16719E Sections 19A to 19D: supplemental.E+W+S

(1)In [F168sections 19A to 19DA] and this section—

  • “accounting information” means such accounting records as would be required by [F169section 386 of the Companies Act 2006] in respect of each of the storage or (as the case may be) treatment activities undertaken by the owner of the facility if those activities were the only business undertaken by the owner and the owner were a person to whom that section applied;

  • F170. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

  • [F171LNG import facility” means a facility for the following—

    (a)

    the importation of liquid gas;

    (b)

    the regasification of liquid gas following its importation and prior to its conveyance to a pipeline system operated by a gas transporter; and

    (c)

    any temporary storage of liquid gas which is necessary for the operation of the facility;]

  • “main commercial conditions” means—

    (a)

    [F172in the case of a storage facility, such information as would enable a potential applicant for a right to have gas or liquid gas stored in the facility to make a reasonable assessment of the cost of, or the method of calculating the cost of, acquiring that right;

    (aa)

    in the case of an LNG import facility, the terms setting out the cost or the method of determining the cost of acquiring the right to have liquid gas treated in the facility;]

    (b)

    the other significant terms on which such a right [F173as is mentioned in paragraph (a) or (aa)] would be granted; and

    (c)

    such additional information as the Director may from time to time specify by notice;

  • [F174“new facility” means—

    (a)

    a storage facility the construction of which is or is to be completed after 3rd August 2003; or

    (b)

    a storage facility the modification of which to provide for a significant increase in capacity is or is to be completed after 3rd August 2003]

  • “owner” in relation to a storage facility or an [F175LNG import facility] includes any person occupying or having control of the facility;

  • “significant transaction” means—

    (a)

    any transaction which relates to rights to have [F176gas or liquid gas stored in a storage facility], or (as the case may be) [F177liquid gas treated in an LNG import facility]; and

    (b)

    any other transaction which is of a description specified from time to time by the Director by notice;

  • [F178“storage”, in relation to liquid gas in a storage facility, includes any liquefaction of gas or regasification of liquid gas ancillary to the storage of liquid gas, and “stored”, in relation to liquid gas in a storage facility, shall be construed accordingly;]

  • [F179“storage facility” means a facility in Great Britain (excluding the territorial sea adjacent to the United Kingdom) for either or both of the following—

    (a)

    the storage of gas in cavities in strata or in porous strata, provided that the facility is or will be used for the storage of gas which has previously been conveyed in a pipeline system operated by a gas transporter;

    (b)

    the storage of liquid gas;

    but the reference in paragraph (b) to the storage of liquid gas does not include such temporary storage as is mentioned in paragraph (c) of the definition of “LNG import facility”]

  • [F180“treatment”, in relation to liquid gas in an LNG import facility, includes importation, temporary storage and regasification, and “treat” shall be construed accordingly.]

(2)For the purpose of considering an application under section 19B(8) or 19D(8), the Director may by notice require the owner of the relevant facility to provide him with accounting information and details of the main commercial terms of any significant transactions with associated undertakings.

(3)Owners of relevant facilities shall keep their internal accounts in such manner as will enable them to provide accounting information if required to do so by a notice under subsection (2).

(4)For the purposes of sections 19B and 19D, an undertaking is an associated undertaking of another undertaking if one of the undertakings has control of the other, or both undertakings are under the control of the same person or persons; and subsections (2) to (5) of section 416 of the Income and Corporation Taxes Act 1988 shall apply with any necessary modifications for the purposes of this subsection as they apply for the purposes of Part XI of that Act.

(5)Any reference in section 19B to a right to have gas or gas of [F181any kind, or liquid gas or liquid gas of any kind,] stored in a storage facility includes a reference to a right to introduce into, or take out of, such a facility gas or gas of [F182that kind, or liquid gas or liquid gas of that kind,].

F183(6). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ]

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Amendments (Textual)

F167Ss. 19A-19E inserted (10.8.2000) by S.I. 2000/1937, reg. 2(2), Sch. 2 para. 1

F183S. 19E(6) ceased to have effect (26.8.2004) by virtue of The Gas (Third Party Access) Regulations 2004 (S.I. 2004/2043), reg. 1, Sch. 2 para. 6(m)

F18420. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .E+W+S

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Amendments (Textual)

21 Increase of capacity etc. of pipelines.E+W+S

[F185(1)If in the case of a pipe-line system operated by a [F186gas transporter] it appears to the Director, on the application of a person other than the transporter, that the system can and should be modified—

(a)by installing in it a junction through which another pipe-line may be connected to the system; or

(b)by modifying apparatus and works associated with a high pressure pipe-line so as to increase the capacity of the pipe-line,

then, subject to subsection (3) below, the Director may, after giving to the transporter an opportunity of being heard about the matter and giving to the Health and Safety Executive notice of his proposed directions, give directions to the transporter in accordance with subsection (2) below in consequence of the application.]

(2)Directions under subsection (1) above may—

(a)specify the modifications which the Director considers should be made in consequence of the application;

(b)specify the sums or the method of determining the sums which the Director considers should be paid to the [F186gas transporter] by the applicant [F187by way of consideration for] the modifications;

(c)specify the arrangements which the Director considers should be made by the applicant, within a period specified in that behalf in the directions, for the purpose of securing that those sums will be paid to [F188the transporter] if he carries out the modifications;

(d)require [F188the transporter], if the applicant makes those arrangements within the period aforesaid, to carry out the modifications within a period specified in that behalf in the directions.

(3)Where the Director proposes to give directions under subsection (1) above, it shall be his duty before doing so to give to the applicant—

(a)particulars of the modifications which he proposes to specify in the directions; and

(b)an opportunity of making an application under subsection (1) of section 19 above in respect of the [F189pipe-line system];

and that section shall have effect in relation to such an application made by virtue of this subsection as if for references to a [F189pipe-line system] there were substituted references to the [F189pipe-line system] as it would be with those modifications and the reference in subsection (2) to the Director deciding whether the application is to be adjourned were omitted.

[F190(3A)In giving any directions under this section, the Director shall apply the principle that, in so far as the following, namely—

(a)the cost of carrying out the modifications; and

(b)a reasonable element of profit,

will not be recoverable by the [F186gas transporter] from elsewhere, the transporter should be entitled to receive them by way of consideration for carrying out the modifications.]

(4)References in this section to modifications include, in the case of modifications to any apparatus and works, references to changes in, substitutions for and additions to the apparatus and works; and the reference in subsection (1) above to apparatus and works associated with a pipe-line shall be construed in accordance with section 65(2) of the M6Pipe-lines Act 1962.

[F191(5)In this section—

  • high pressure pipe-line” means any pipe-line which has a design operating pressure exceeding 7 bar gauge;

  • pipe-line” has the same meaning as in the M7Pipe-lines Act 1962.]

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Amendments (Textual)

F185S. 21(1) substituted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 18(1); S.I. 1996/218, art. 2

F186Words in s. 21 substituted (1.10.2001) by 2000 c. 27, s. 108, Sch. 6 Pt. I para. 2(1); S.I. 2001/3266, arts. 1(2), 2, Sch. (subject to transitional provisions in arts. 3-20)

F187Words in s. 21(2) substituted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 18(2)(b); S.I. 1996/218, art. 2

F188Words in s. 21(2) substituted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 18(2)(c); S.I. 1996/218, art. 2

F189Words in s. 21(3) substituted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 18(3); S.I. 1996/218, art. 2

F190S. 21(3A) inserted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 18(4); S.I. 1996/218, art. 2

F191S. 21(5) inserted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 18(5); S.I. 1996/218, art. 2

Marginal Citations

22 Effect of directions.E+W+S

(1)The obligation to comply with any directions under section [F192section 19, 19B(11), 19D(11) or 21(1)] above (in this section referred to as “relevant directions”) [F193and the obligation to comply with any duty in section 19B(7) and 19D(7) (in this section referred to as “relevant duties”) are duties] owed to any person who may be affected by a contravention of them.

(2)Where a duty is owed by virtue of subsection (1) above to any person any breach of the duty which causes that person to sustain loss or damage shall be actionable at the suit or instance of that person.

(3)In any proceedings brought against any person in pursuance of subsection (2) above, it shall be a defence for him to prove that he took all reasonable steps and exercised all due diligence to avoid contravening the relevant directions [F194or relevant duties].

(4)Without prejudice to any right which any person may have by virtue of subsection (2) above to bring civil proceedings in respect of any contravention or apprehended contravention of any relevant directions, compliance with any such directions shall be enforceable by civil proceedings by the Director for an injunction or interdict or for any other appropriate relief.

[F195(5)Compliance with the duties in sections 19B(1) and (3), 19D(1) and (3) and section 19E(3) shall be enforceable by civil proceedings by the Director for an injunction or interdict or for any other appropriate relief.]

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Amendments (Textual)

F192Words in s. 22(1) substituted (10.8.2000) by S.I. 2000/1937, reg. 2(2), Sch. 2 para. 2(a)

F193Words in s. 22(1) substituted (10.8.2000) by S.I. 2000/1937, reg. 2(2), Sch. 2 para. 2(b)

F194Words in s. 22(3) inserted (10.8.2000) by S.I. 2000/1937, reg. 2(2), Sch. 2 para. 2(c)

F195S. 22(5) inserted (10.8.2000) by S.I. 2000/1937, reg. 2(2), Sch. 2 para. 2(d)

Modifications etc. (not altering text)

C35S. 22 applied (with modifications) (1.3.1996) by 1995 c. 45, s. 12(5); S.I. 1996/218, art. 3

S. 22 applied (10.8.2000) by 1995 c. 45, s. 12(5) (as substituted (10.8.2000) by S.I. 2000/1937, reg. 2(3), Sch. 3 para. 4)

[F19622A Construction of pipe-lines.E+W+S

(1)[F197A gas transporter shall not at any time execute within 23 metres from a pipe-line of another gas transporter (the “other transporter”)] any works for the construction of a pipe-line unless—

(a)he has given the other transporter a notice stating that he intends to construct the pipe-line;

(b)he has consulted with that transporter as to exactly where F198. . . the proposed pipe-line is to be located, having regard to the location of other pipe-lines F198. . .; F199. . .

(c)he has consulted with that transporter as to the manner in which—

(i)the safety of the pipe-line is to be secured; and

(ii)any escapes of gas (actual or suspected) from the pipe-line are to be dealt with [F200; and.

(d)(subject to subsection (1C)) where the existing pipe-line is a relevant main of the other transporter, that transporter has consented in writing to the construction of the proposed pipe-line, either unconditionally or subject to conditions.]

[F201(1A)Subsection (1) does not apply if the proposed pipe-line is required to enable a gas transporter to comply with any duty imposed by section 10(2).

(1B)Conditions imposed under subsection (1)(d) may relate to matters arising after the construction of the proposed pipe-line, including the use to be made of the pipe-line.

(1C)If the other transporter—

(a)refuses or fails to give consent under subsection (1)(d); or

(b)gives such consent subject to conditions,

consent may instead be given in writing by the Authority where it considers it appropriate to do so.

(1D)Consent under subsection (1C) may only be given unconditionally or, in a case falling within subsection (1C)(b), subject to the same conditions as were imposed by the other transporter.

(1E)A condition imposed on a gas transporter under this section shall be enforceable by civil proceedings by the other transporter for an injunction or for interdict or for any other appropriate relief.]

(2)A notice under subsection (1)(a) above shall—

(a)specify the points between which the proposed pipe-line is to run and be accompanied by a map (drawn to an appropriate scale) on which is delineated the route which it is proposed to take;

(b)specify the length, diameter and operating pressure of the proposed pipe-line and the kind of gas which it is designed to convey; and

(c)contain such other particulars (if any) as may be prescribed.

(3)In this section—

  • construction”, in relation to a pipe-line, includes placing;

  • pipe-line” has the same meaning as in the Pipe-lines Act 1962.

  • [F202relevant main” has the meaning given by section 10(12).]

(4)For the purposes of this section the execution of works in land for the purpose of determining whether or not it is suitable for the placing in it of a pipe-line and the carrying out of surveying operations for the purpose of settling the route of a proposed pipe-line shall be deemed not to constitute the execution of works for the construction of a pipe-line.]

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Amendments (Textual)

F196S. 22A inserted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 20; S.I. 1996/218, art. 2

F197Words in s. 22A(1) substituted (1.10.2001) by 2000 c. 27, s. 78(2)(a); S.I. 2001/3266, arts. 1(2), 2, Sch. (subject to transitional provisions in arts. 3-20)

F198Words in s. 22A(1)(b) repealed (1.10.2001) by 2000 c. 27, ss. 78(2)(b), 108, Sch. 8; S.I. 2001/3266, arts. 1(2), 2, Sch. (subject to transitional provisions in arts. 3-20)

F199Word in s. 22A(1)(b) repealed (1.10.2001) by 2000 c. 27, s. 108, Sch. 8; S.I. 2001/3266, arts. 1(2), 2, Sch. (subject to transitional provisions in arts. 3-20)

F200S. 22A(1)(d) and word “and”immediately preceding it inserted (1.10.2001) by 2000 c. 27, s. 78(2)(c); S.I. 2001/3266, art. 2, Sch. (subject to transitional provisions in arts. 3-20)

F201S. 22A(1A)-(1E) inserted (1.10.2001) by 2000 c. 27, s. 78(3); S.I. 2001/3266, arts. 1(2), 2, Sch. (subject to transitional provisions in arts. 3-20)

F202Definition of

relevant main

in s. 22A(3) inserted (1.10.2001) by 2000 c. 27, s. 78(4); S.I. 2001/3266, arts. 1(2), 2, Sch. (subject to transitional provisions in arts. 3-20)

[F203 Modification of licences]E+W+S

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Amendments (Textual)

F203S. 23 and preceding cross-heading substituted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 21; S.I. 1996/218, art. 2

23[F204 Modification by agreement.]E+W+S

(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[F205, licences under section 7ZA 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[F206, licences under section 7ZA 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.

[F207(6)The Authority shall not make any modifications under subsection (1)(a) unless the licence holder has consented to the modifications and, in the case of standard conditions of a licence under subsection (1) or (2) of section 7A, the Authority is of the opinion that the modifications—

(a)are requisite to meet the circumstances of the particular case; and

(b)are such that—

(i)the licence holder would not be unduly disadvantaged in competing with other holders of licences under that subsection; and

(ii)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 being modified).

(6A)The modification under subsection (1)(a) of part of a standard condition of a licence shall not prevent any other part of the condition from continuing to be regarded as a standard condition for the purposes of this Part.]

[F208(7)The Authority may not under subsection (1)(b) make any modifications of the standard conditions of any licences unless—

(a)no notice of objection to those modifications is given to the Authority within the time specified in the notice under subsection (3) by any relevant licence holder;

(b)if one or more relevant licence holders give notice of objection to the Authority within that time—

(i)the proportion (expressed as a percentage) of the relevant licence holders who have given notice of objection is less than such percentage as may be prescribed; and

(ii)the percentage given by subsection (8) is less than such percentage as may be prescribed; or

(c)subsection (10) applies to the case.

(8)The percentage given by this subsection is the proportion (expressed as a percentage) of the relevant licence holders who have given notice of objection, weighted according to their market share in such manner as may be prescribed.]

(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[F209, 7ZA] or 7A(1) or (2) above granted after that time, he shall publish the modifications in such manner as he considers appropriate.

[F210(12)In this section—

  • prescribed” means prescribed by order made by the Secretary of State;

  • relevant licence holder”, in relation to proposed modifications under subsection (1)(b) of standard conditions of licences of any type, means the holder of a licence of that type which-

    (a)

    is to be modified under the proposals by the inclusion of any new standard condition; or

    (b)

    includes any standard conditions to which the proposals relate, other than standard conditions which are not in effect (by virtue of anything done under section 81(1) of the Utilities Act 2000) at the time specified in the notice under subsection (3).

(13)A statutory instrument containing an order under this section shall not be made unless a draft of the instrument has been laid before and approved by a resolution of each House of Parliament.]

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Amendments (Textual)

F204S. 23 and preceding cross-heading substituted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 21; S.I. 1996/218, art. 2

F205Words in s. 23(1)(b) inserted (1.12.2004) by Energy Act 2004 (c. 20), ss. 150(8), 198(2); S.I. 2004/2575, art. 2(2), Sch. 2

F206Words in s. 23(2) inserted (1.12.2004) by Energy Act 2004 (c. 20), ss. 150(8), 198(2); S.I. 2004/2575, art. 2(2), Sch. 2

F207S. 23(6)(6A) substituted (1.10.2001) for s. 23(6) by 2000 c. 27, s. 82(3); S.I. 2001/3266, arts. 1(2), 2, Sch. (subject to transitional provisions in arts. 3-20)

F208S. 23(7)(8) substituted (1.10.2001) for s. 23(7)-(9) by 2000 c. 27, s. 82(3); S.I. 2001/3266, arts. 1(2), 2, Sch. (subject to transitional provisions in arts. 3-20)

F209Words in s. 23(11) inserted (1.12.2004) by Energy Act 2004 (c. 20), ss. 150(9), 198(2); S.I. 2004/2575, art. 2(2), Sch. 2

F210S. 23(12)(13) substituted (16.5.2001 for certain purposes and otherwise 1.10.2001) for s. 23(12) by 2000 c. 27, s. 82(4); S.I. 2001/1781, art. 2, Sch. (subject to transitional provisions in arts. 3-10); S.I. 2001/3266, arts. 1(2), 2, Sch. (subject to transitional provisions in arts. 3-20)

24 Modification references to Monopolies Commission.E+W+S

[F211(1)The Director may make to the [F212Competition 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 [F213regulated] by a particular licence, or

[F214(ia)licences under section 7ZA above,]

(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 [F215Competition 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 [F216regulated] 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)The Director may, at any time, by notice given to the [F217Competition Commission]vary a reference under this section by adding to the matters specified in the reference or by excluding from the reference some F218. . .of the matters so specified; and on receipt of such notice the Commission shall give effect to the variation.

(3)The Director may specify in a reference under this section, or a variation of such a reference, for the purpose of assisting the [F219Competition Commission]in carrying out the investigation on the reference—

(a)any effects adverse to the public interest which, in his opinion, the matters specified in the reference or variation have or may be expected to have; and

(b)any modifications of the [F220relevant conditions] by which, in his opinion, those effects could be remedied or prevented.

(4)As soon as practicable after making a reference under this section or a variation of such a reference, the Director—

(a)shall send a copy of the reference or variation to [F221the holder of the licence or, as the case may be, the relevant licence holders] and to the Council; and

(b)publish particulars of the reference or variation in such manner as he considers appropriate for the purpose of bringing the reference or variation to the attention of persons likely to be affected by it.

[F222(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 [F223Competition 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)It shall be the duty of the Director, for the purpose of assisting the [F224Competition Commission]in carrying out an investigation on a reference under this section [F225or in carrying out functions under section 26A], 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 [F225or the carrying out of those functions], and which is either requested by the Commission for that purpose or 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, for the purpose of carrying out any such investigation [F225or such functions], shall take account of any information given to them for that purpose under this subsection.

(6)In determining for the purposes of this section whether any particular matter operates, or may be expected to operate, against the public interest, the [F226Competition Commission]shall have regard to the matters as respects which duties are imposed on the Secretary of State and the Director by [F227sections 4AA, 4AB and 4A] above.

F228(7). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F228(7A). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F229(8)In this section and sections [F23024A,] 25 [F231,26 and 26A]

  • relevant conditions” has the meaning given by subsection (1) or (1A) above;

  • relevant licence holder”—

    (a)

    in relation to a reference under subsection (1A) above, means the holder of a licence to which the reference relates;

    (b)

    in relation to modifications of relevant conditions within the meaning given by that subsection, means the holder of a licence which incorporates the conditions.]

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Amendments (Textual)

F211S. 24(1)(1A) substituted for s. 24(1) (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 22(1); S.I. 1996/218, art. 2

F212Words in s. 24(1) substituted (1.4.1999) by S.I. 1999/506, art. 20(a)

F213Word in s. 24(1)(a)(i) substituted (1.10.2001) by 2000 c. 27, s. 108, Sch. 6, Pt. I para. 8(2); S.I. 2001/3266, arts. 1(2), 2, Sch. (subject to transitional provisions in arts. 3-20)

F214S. 24(1A)(a)(ia) inserted (1.12.2004) by Energy Act 2004 (c. 20), ss. 149(9), 198(2); S.I. 2004/2575, art. 2(2), Sch. 2

F215Words in s. 24(1A) substituted (1.4.1999) by S.I. 1999/506, art. 20(b)

F216Words in s. 24(1A)(a) substituted (1.10.2001) by 2000 c. 27, s. 108, Sch. 6, Pt. I para. 8(2); S.I. 2001/3266, arts. 1(2), 2, Sch. (subject to transitional provisions in arts. 3-20)

F217Words in s. 24(2) substituted (1.4.1999) by S.I. 1999/506, art. 20(b)

F218Words in s. 24(2) repealed (1.10.2001) by 2000 c. 27, s. 108, Sch. 8; S.I. 2001/3266, arts. 1(2), 2, Sch. (subject to transitional provisions in arts. 3-20)

F219Words in s. 24(3) substituted (1.4.1999) by S.I. 1999/506, art. 20(b)

F220Words in s. 24(3) substituted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 22(2); S.I. 1996/218, art. 2

F221Words in s. 24(4) substituted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 22(3); S.I. 1996/218, art. 2

F222S. 24(4A) inserted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 22(4); S.I. 1996/218, art. 2

F223Words in s. 24(4A) substituted (1.4.1999) by S.I. 1999/506, art. 20(b)

F224Words in s. 24(5) substituted (1.4.1999) by S.I. 1999/506, art. 20(b)

F225Words in s. 24(5) inserted (1.10.2001) by 2000 c. 27, s. 83(1); S.I. 2001/3266, arts. 1(2), 2, Sch. (subject to transitional provisions in arts. 3-20)

F226Words in s. 24(6) substituted (1.4.1999) by S.I. 1999/506, art. 20(b)

F227Words in s. 24(6) substituted (20.12.2000) by 2000 c. 27, s. 108, Sch. 6 Pt. I para. 8(3); S.I. 2000/3343, art. 2, Sch. (subject to transitional provisions in arts. 3-15)

F229S. 24(8) inserted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 22(6); S.I. 1996/218, art. 2

F231Words in s. 24(8) substituted (1.10.2001) by 2000 c. 27, s. 108, Sch. 6, Pt. I para. 8(4); S.I. 2001/3266, arts. 1(2), 2, Sch. (subject to transitional provisions in arts. 3-20)

Modifications etc. (not altering text)

C36S. 24 amended (16.5.2001) by 2000 c. 27, s. 104(1)(2) (with s. 104(6)); S.I. 2001/1781, art. 2, Sch. (subject to transitional provisions in arts. 3-10)

[F23224A References under section 24: time limitsE+W+S

(1)Every reference under section 24 above shall specify a period (not longer than six months beginning with the date of the reference) within which a report on the reference is to be made.

(2)A report of the Competition Commission on a reference under section 24 above shall not have effect (and no action shall be taken in relation to it under section 26 below) unless the report is made before the end of the period specified in the reference or such further period (if any) as may be allowed by the Authority under subsection (3) below.

(3)The Authority may, if it has received representations on the subject from the Competition Commission and is satisfied that there are special reasons why the report cannot be made within the period specified in the reference, extend that period by no more than six months.

(4)No more than one extension is possible under subsection (3) above in relation to the same reference.

(5)The Authority shall, in the case of an extension made by it under subsection (3) above—

(a)publish that extension in such manner as it considers appropriate for the purpose of bringing it to the attention of persons likely to be affected by it; and

(b)send a copy of what has been published by it under paragraph (a) above to the holder of the licence or, as the case may be, the relevant licence holders.]

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Amendments (Textual)

F232S. 24A, 24B inserted (20.6.2003) by Enterprise Act 2002 (c. 40), s. 279, Sch. 25 para. 15(4); S.I. 2003/1397, art. 2(1), Sch. (with art. 8) (as amended (20.7.2007) by S.I. 2007/1846, reg. 3(2), Sch.)

[F23224B References under section 24: powers of investigationE+W+S

(1)The following sections of Part 3 of the Enterprise Act 2002 shall apply, with the modifications mentioned in subsections (2) and (3) below, for the purposes of references under section 24 above as they apply for the purposes of references under that Part—

(a)section 109 (attendance of witnesses and production of documents etc.);

(b)section 110 (enforcement of powers under section 109: general);

(c)section 111 (penalties);

(d)section 112 (penalties: main procedural requirements);

(e)section 113 (payments and interest by instalments);

(f)section 114 (appeals in relation to penalties);

(g)section 115 (recovery of penalties); and

(h)section 116 (statement of policy).

(2)Section 110 shall, in its application by virtue of subsection (1) above, have effect as if—

(a)subsection (2) were omitted; and

(b)in subsection (9) the words from “or section” to “section 65(3))” were omitted.

(3)Section 111(5)(b)(ii) shall, in its application by virtue of subsection (1) above, have effect as if—

(a)for the words “published (or, in the case of a report under section 50 or 65, given)” there were substituted “made”;

(b)for the words “published (or given)”, in both places where they appear, there were substituted “made”; and

(c)the words “by this Part” were omitted.

(4)Provisions of Part 3 of the Enterprise Act 2002 which have effect for the purposes of sections 109 to 116 of that Act (including, in particular, provisions relating to offences and the making of orders) shall, for the purposes of the application of those sections by virtue of subsection (1) above, have effect in relation to those sections as applied by virtue of that subsection.

(5)Accordingly, corresponding provisions of this Act shall not have effect in relation to those sections as applied by virtue of that subsection.]

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Amendments (Textual)

F232S. 24A, 24B inserted (20.6.2003) by Enterprise Act 2002 (c. 40), s. 279, Sch. 25 para. 15(4); S.I. 2003/1397, art. 2(1), Sch. (with art. 8) (as amended (20.7.2007) by S.I. 2007/1846, reg. 3(2), Sch.)

25 Reports on modification references.E+W+S

(1)In making a report on a reference under section 24 above, the [F233Competition Commission]

(a)shall include in the report definite conclusions on the questions comprised in the reference together with such an account of their reasons for those conclusions as in their opinion is expedient for facilitating proper understanding of those questions and of their conclusions;

(b)where they conclude that any of the matters specified in the reference operate, or may be expected to operate, against the public interest, shall specify in the report the effects adverse to the public interest which those matters have or may be expected to have; and

(c)where they conclude that any adverse effects so specified could be remedied or prevented by modifications of [F234the relevant conditions], shall specify in the report modifications by which those effects could be remedied or prevented.

[F235(1A)For the purposes of sections 26 and 26A below, a conclusion contained in a report of the Competition Commission is to be disregarded if the conclusion is not that of at least two-thirds of the members of the group constituted in connection with the reference concerned in pursuance of paragraph 15 of Schedule 7 to the Competition Act 1998.

(1B)If a member of a group so constituted disagrees with any conclusions contained in a report made on a reference under section 24 above as the conclusions of the Competition Commission, the report shall, if the member so wishes, include a statement of his disagreement and of his reasons for disagreeing.]

F236(2). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F237(3)For the purposes of the law relating to defamation, absolute privilege attaches to any report made by the Competition Commission on a reference under section 24 above.

(3A)In making any report on a reference under section 24 above the Competition Commission must have regard to the following considerations before disclosing any information.

(3B)The first consideration is the need to exclude from disclosure (so far as practicable) any information whose disclosure the Competition Commission thinks is contrary to the public interest.

(3C)The second consideration is the need to exclude from disclosure (so far as practicable)—

(a)commercial information whose disclosure the Competition Commission thinks might significantly harm the legitimate business interests of the undertaking to which it relates, or

(b)information relating to the private affairs of an individual whose disclosure the Competition Commission thinks might significantly harm the individual’s interests.

(3D)The third consideration is the extent to which the disclosure of the information mentioned in subsection (3C)(a) or (b) above is necessary for the purposes of the report.]

(4)A report of the [F233Competition Commission] on a reference under section 24 above shall be made to the Director.

(5)Subject to subsection (6) below, the Director shall—

(a)on receiving [F238a report on a reference under section 24(1) above, send a copy of it to the licence holder] and to the Secretary of State; and

(b)not less than 14 days after that copy is received by the Secretary of State, send another copy to the Council and publish that other copy in such manner as he considers appropriate for bringing the report to the attention of persons likely to be affected by it.

[F239(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.]

(6)If it appears to the Secretary of State that the publication of any matter in such a report would be against the public interest or the commercial interests of any person, he may, before the end of the period of 14 days mentioned in subsection (5) [F240or (5A)]above, direct the Director to exclude that matter from [F241the 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].

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Amendments (Textual)

F233Words in s. 25(1)-(4) substituted (1.4.1999) by S.I. 1999/506, art. 20(b)

F234Words in s. 25(1)(c) substituted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 23(1); S.I. 1996/218, art. 2

F237S. 25(3)-(3D) substituted for s. 25(3) (20.6.2003) by Enterprise Act 2002 (c. 40), s. 279, Sch. 25 para. 15(5)(b); S.I. 2003/1397, art. 2(1), Sch. (with art. 8)

F238Words in s. 25(5)(a) substituted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 23(3); S.I. 1996/218, art. 2

F239S. 25(5A) inserted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 23(4); S.I. 1996/218, art. 2

F240Words in s. 25(6) inserted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 23(5)(a); S.I. 1996/218, art. 2

F241Words in s. 25(6) substituted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 23(5)(b); S.I. 1996/218, art. 2

26 Modification following report.E+W+S

(1)Where a report of the [F242Competition Commission]a reference under section 24 above—

(a)includes conclusions to the effect that any of the matters specified in the reference operate, or may be expected to operate, against the public interest;

(b)specifies effects adverse to the public interest which those matters have or may be expected to have;

(c)includes conclusions to the effect that those effects could be remedied or prevented by modifications of [F243the relevant conditions]; and

(d)specifies modifications by which those effects could be remedied or prevented,

the Director shall, subject to the following provisions of this section, make such modifications of [F243the relevant conditions] as appear to him requisite for the purpose of remedying or preventing the adverse effects specified in the report.

[F244(1A)Where at any time the Director modifies under subsection (1) above the standard conditions of licences under section 7 above[F245, licences under section 7ZA 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.]

(2)Before making modifications under this section, the Director shall have regard to the modifications specified in the report.

(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 matters to which the notice relates 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 [F246holder of the licence or, as the case may be, the relevant licence holders, to the Health and Safety Executive] and to the Council.

[F247(4A)After considering any representations or objections made in response to proposals set out in a notice under subsection (3), the Authority shall give notice to the Competition Commission—

(a)setting out the modifications it proposes to make to remedy or prevent the adverse effects specified in the report; and

(b)stating the reasons for making the modifications.

(4B)The Authority shall include with the notice under subsection (4A) a copy of any representations or objections received in relation to the notice under subsection (3).

(4C)If the period of four weeks from the date on which the notice under subsection (4A) is given elapses without a direction under section 26A(1)(a) having been given to it, the Authority shall—

(a)make the modifications set out in the notice; or

(b)if a direction under section 26A(1)(b) has been given, make the modifications which are not specified in the direction.]

[F248(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[F249, 7ZA] or 7A(1) or (2) above granted after that time, he shall publish the modifications in such manner as he considers appropriate.]

[F250(6)The modification under subsection (1) of part of a standard condition of a particular licence in consequence of a reference under section 24(1) shall not prevent any other part of the condition from continuing to be regarded as a standard condition for the purposes of this Part.]

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Amendments (Textual)

F242Words in S. 26(1) substituted (1.4.1999) by S.I. 1999/506 art. 20(b)

F243Words in s. 26(1) substituted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 24(1); S.I. 1996/218, art. 2

F244S. 26(1A) inserted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 24(2); S.I. 1996/218, art. 2

F245Words in s. 26(1A) inserted (1.12.2004) by Energy Act 2004 (c. 20), ss. 150(8), 198(2); S.I. 2004/2575, art. 2(2), Sch. 2

F246Words in s. 26(4) substituted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 24(3); S.I. 1996/218, art. 2

F247S. 26(4A)-(4C) inserted (1.10.2001) by 2000 c. 27, s. 83(2); S.I. 2001/3266, arts. 1(2), 2, Sch. (subject to transitional provisions in arts. 3-20)

F248S. 26(5) inserted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 24(4); S.I. 1996/218, art. 2

F249Words in s. 26(5) inserted (1.12.2004) by Energy Act 2004 (c. 20), ss. 150(9), 198(2); S.I. 2004/2575, art. 2(2), Sch. 2

F250S. 26(6) inserted (1.10.2001) by 2000 c. 27, s. 83(3); S.I. 2001/3266, arts. 1(2), 2, Sch. (subject to transitional provisions in arts. 3-20)

[F25126A Competition Commission’s power to veto modifications following report.E+W+S

(1)The Competition Commission (in this section referred to as “the Commission”) may, within the period of four weeks after the date on which it is given a notice under section 26(4A), direct the Authority—

(a)not to make the modifications set out in that notice; or

(b)not to make such of the modifications as may be specified in the direction;

and the Authority shall comply with any such direction.

(2)The Secretary of State may, within the period of four weeks after the date on which the Commission is given a notice under section 26(4A) and on the application of the Commission, direct that the period for giving a direction under subsection (1) (and, accordingly, the period mentioned in section 26(4C)) shall be extended by 14 days.

(3)The power to give a direction under subsection (1) may only be exercised in respect of such of the modifications set out in the notice under section 26(4A)(a) as appear to the Commission not to be the modifications which are requisite for the purpose of remedying or preventing all or any of the adverse effects specified in the report as effects which could be remedied or prevented by modifications.

(4)If the Commission gives a direction under subsection (1), the Commission—

(a)shall give notice setting out the modifications proposed by the Authority, the terms of the direction and the reasons for giving it; and

(b)shall itself make such modifications of the relevant conditions as appear to it to be requisite for the purpose of remedying or preventing—

(i)if the direction was given under subsection (1)(a), the adverse effects specified in the report as effects which could be remedied or prevented by modifications;

(ii)if the direction was given under subsection (1)(b), such of those adverse effects as are not remedied or prevented by the modifications made by the Authority under section 26(4C)(b).

(5)In exercising its function under subsection (4)(b) the Commission shall have regard to the matters to which the Authority is required to have regard when determining the conditions of a licence.

(6)Before making modifications under subsection (4)(b) the Commission shall give notice—

(a)stating that it proposes to make the modifications and setting them out;

(b)stating the reason why it proposes to make them;

(c)specifying the period (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.

(7)A notice under subsection (4)(a) or (6) shall be given—

(a)by publishing the notice in such manner as the Commission considers appropriate for the purpose of bringing it to the attention of persons likely to be affected by the making of the modifications; and

(b)by serving a copy on the Authority and the holder of the licence in question or, as the case may be, the relevant licence holders.

(8)After making modifications under this section the Commission shall publish a notice stating that the modifications have been made and setting them out, with the reasons for making them.

(9)Where, in consequence of a reference under section 24(1A), the Commission modifies under subsection (4)(b) the standard conditions of licences of any type (that is to say, licences under section 7 [F252or section 7ZA] or section 7A(1) or 7A(2)) the Authority may make such incidental and consequential modifications as it considers necessary or expedient of any conditions of licences of that type granted before that time.

(10)Where the Commission modifies the standard conditions of licences of any type as mentioned in subsection (9) the Authority—

(a)shall make (as nearly as may be) the same modifications of those conditions for the purposes of their incorporation in licences of that type granted after that time; and

(b)shall publish the modifications made for those purposes in such manner as it considers appropriate.

(11)The modification under this section of part of a standard condition of a particular licence in consequence of a reference under section 24(1) shall not prevent any other part of the condition from continuing to be regarded as a standard condition for the purposes of this Part.

[F253(11A)For the purposes of the law relating to defamation, absolute privilege attaches to any notice under subsection (4)(a), (6) or (8).

(11B)In giving any notice under subsection (4)(a) or (6), or publishing any notice under subsection (8), the Commission must have regard to the following considerations before disclosing any information.

(11C)The first consideration is the need to exclude from disclosure (so far as practicable) any information whose disclosure the Commission thinks is contrary to the public interest.

(11D)The second consideration is the need to exclude from disclosure (so far as practicable)—

(a)commercial information whose disclosure the Commission thinks might significantly harm the legitimate business interests of the undertaking to which it relates, or

(b)information relating to the private affairs of an individual whose disclosure the Commission thinks might significantly harm the individual’s interests.

(11E)The third consideration is the extent to which the disclosure of the information mentioned in subsection (11D)(a) or (b) is necessary for the purposes of the notice.

(11F)The following sections of Part 3 of the Enterprise Act 2002 shall apply, with the modifications mentioned in subsections (11G) and (11H), for the purposes of any investigation by the Commission for the purposes of the exercise of its functions under this section, as they apply for the purposes of any investigation on references under that Part—

(a)section 109 (attendance of witnesses and production of documents etc.);

(b)section 110 (enforcement of powers under section 109: general);

(c)section 111 (penalties);

(d)section 112 (penalties: main procedural requirements);

(e)section 113 (payments and interest by instalments);

(f)section 114 (appeals in relation to penalties);

(g)section 115 (recovery of penalties); and

(h)section 116 (statement of policy).

(11G)Section 110 shall, in its application by virtue of subsection (11F), have effect as if—

(a)subsection (2) were omitted;

(b)in subsection (4), for the words “the publication of the report of the Commission on the reference concerned” there were substituted “the publication by the Commission of a notice under section 26A(8) of the Gas Act 1986 in connection with the reference concerned or, if no direction has been given by the Commission under section 26A(1) of that Act in connection with the reference concerned and within the period permitted for that purpose, the latest day on which it was possible to give such a direction within the permitted period”; and

(c)in subsection (9) the words from “or section” to “section 65(3))” were omitted.

(11H)Section 111(5)(b) shall, in its application by virtue of subsection (11F), have effect as if for sub-paragraph (ii) there were substituted—

(ii)if earlier, the day on which a notice is published by the Commission under section 26A(8) of the Gas Act 1986 in connection with the reference concerned or, if no direction is given by the Commission under section 26A(1) of that Act in connection with the reference concerned and within the period permitted for that purpose, the latest day on which such a direction may be given within the permitted period..

(11I)Provisions of Part 3 of the Enterprise Act 2002 which have effect for the purposes of sections 109 to 116 of that Act (including, in particular, provisions relating to offences and the making of orders) shall, for the purposes of the application of those sections by virtue of subsection (11F) above, have effect in relation to those sections as applied by virtue of that subsection.

(11J)Accordingly, corresponding provisions of this Act shall not have effect in relation to those sections as applied by virtue of that subsection.]

F254(12). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F254(13). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(14)This section does not apply to the modification of a licence following a report of the Commission made before the commencement of section 83(4) of the Utilities Act 2000.]

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Amendments (Textual)

F251S. 26A inserted (1.10.2001) by 2000 c. 27, ss. 83(4), 104(1)(2) (with s. 104(6)); S.I. 2001/3266, arts. 1(2), 2, Sch. (subject to transitional provisions in arts. 3-20)

F252Words in s. 26A(9) inserted (1.12.2004) by Energy Act 2004 (c. 20), ss. 150(10), 198(2); S.I. 2004/2575, art. 2(2), Sch. 2

[F25527 Modification by order under other enactments.E+W+S

[F256(1)Where the Office of Fair Trading, the Competition Commission or (as the case may be) the Secretary of State (in this section “the relevant authority”) makes a relevant order, 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[F257, licences under section 7ZA above], licences under subsection (1) of section 7A above or licences under subsection (2) of that section,

to such extent as may appear to the relevant authority to be requisite or expedient for the purpose of giving effect to, or taking account of, any provision made by the order.

(1ZA)In subsection (1) above “relevant order” means—

(a)F258an order under section 75, 83 or 84 of, or paragraph 5, 10 or 11 of Schedule 7 to, the Enterprise Act 2002 where—

(i)one or more than one of the enterprises which have, or may have, ceased to be distinct enterprises was engaged in the carrying on of activities authorised or regulated by a licence; or

(ii)one or more than one of the enterprises which will or may cease to be distinct enterprises is engaged in the carrying on of activities authorised or regulated by a licence; or

(b)an order under section 160 or 161 of that Act where the feature, or combination of features, of the market in the United Kingdom for goods or services which prevents, restricts or distorts competition relates to—

(i)activities authorised or regulated 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.]

[F259(1A)The modification under subsection (1)(a) of part of a standard condition of a particular licence in consequence of a reference under section 24(1) shall not prevent any other part of the condition from continuing to be regarded as a standard condition for the purposes of this Part.]

(2)Where at any time the [F260relevant authority] modifies under subsection (1)(b) above the standard conditions of licences under section 7 above[F261, licences under section 7ZA above], licences under subsection (1) of section 7A above or licences under subsection (2) of that [F262section, the relevant authority]

(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 [F263as the relevant authority considers] necessary or expedient of any conditions of licences under that provision granted before that time.

F264(3). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F264(4). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(5)Where at any time the [F265relevant authority] modifies standard conditions under subsection (2)(a) above for the purposes of their incorporation in licences granted after that time, [F266the relevant authority] shall publish those modifications in such manner as [F266the relevant authority] considers appropriate.

[F267(6)Expressions used in subsection (1ZA) above and in Part 3 or (as the case may be) Part 4 of the Enterprise Act 2002 have the same meanings in that subsection as in that Part.]]

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Amendments (Textual)

F255S. 27 substituted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 25; S.I. 1996/218, art. 2

F256S. 27(1)(1ZA) substituted for s. 27(1) (20.6.2003) by Enterprise Act 2002 (c. 40), s. 279, Sch. 9 para. 4(2); S.I. 2003/1397, art. 2(1), Sch.

F257Words in s. 27(1)(b) inserted (1.12.2004) by Energy Act 2004 (c. 20), ss. 150(8), 198(2); S.I. 2004/2575, art. 2(2), Sch. 2

F259S. 27(1A) inserted (1.10.2001) by 2000 c. 27, s. 83(5); S.I. 2001/3266, arts. 1(2), 2, Sch. (subject to transitional provisions in arts. 3-20)

F261Words in s. 27(2) inserted (1.12.2004) by Energy Act 2004 (c. 20), ss. 150(8), 198(2); S.I. 2004/2575, art. 2(2), Sch. 2

[F268 Determination of disputes]E+W+S

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Amendments (Textual)

F268S. 27A and the preceding cross-heading inserted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 26; S.I. 1996/218, art. 2

27A[F269 Determination of certain disputes.]E+W+S

(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 [F270gas transporter] or gas supplier and a person who is, or wishes to become, a [F271customer of a person authorised by a licence or exemption to supply gas]

(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 [F270gas 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 [F270gas 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.

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Amendments (Textual)

F269S. 27A inserted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 26; S.I. 1996/218, art. 2

F270Words in s. 27A substituted (1.10.2001) by 2000 c. 27, s. 108, Sch. 6 Pt. I para. 2(1); S.I. 2001/3266, arts. 1(2), 2, Sch. (subject to transitional provisions in arts. 3-20)

F271Words in s. 27A(1) substituted (1.10.2001) by 2000 c. 27, s. 108, Sch. 6, Pt. I para. 10; S.I. 2001/3266, arts. 1(2), 2, Sch. (subject to transitional provisions in arts. 3-20)

[F272Article 25 DisputesE+W+S+N.I.

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Amendments (Textual)

27BMeaning of “Article 25 dispute”E+W+S+N.I.

(1)For the purposes of sections 27C and 27D a dispute is an “Article 25 dispute” if—

(a)it is wholly or mainly a dispute with respect to an issue mentioned in Article 19 or paragraph 1, 2 or 4 of Article 25 of the 2003 Directive; and

(b)it arises from a written complaint made against—

(i)a gas transporter,

(ii)the holder of a licence under section 7ZA (licences for operation of gas interconnectors), or

(iii)the owner of an LNG import facility to which section 19D applies,

and is a dispute between the complainant and the person complained against.

(2)The reference in subsection (1)(b) to a complaint does not include a reference to—

(a)a complaint about a modification (or a failure to make a modification) of—

(i)a term or condition of a relevant licence held by the person complained against, or

(ii)an obligation or right contained in any code or other document and having effect by virtue of such a term or condition; or

(b)a complaint made by a person as a household customer or potential household customer.

(3)In this section and section 27C—

  • “the 2003 Directive” means Directive 2003/55/EC of the European Parliament and of the Council concerning common rules for the internal market in natural gas;

  • “household customer” has the meaning given by Article 2(25) of the 2003 Directive;

  • “LNG import facility” has the meaning given in section 19E(1);

  • “owner”, in relation to an LNG import facility, includes any person occupying or having control of the facility;

  • “relevant licence” means a licence under section 7(2) or 7ZA.

27CDetermination of disputesE+W+S+N.I.

(1)An Article 25 dispute (other than one which may be referred to the Authority under or by virtue of any other provision of this Act) may be referred to the Authority under this section by the person who is the complainant in relation to the dispute.

(2)An Article 25 dispute referred to the Authority under this section shall be determined by order made either by the Authority or, if the Authority thinks fit, by an arbitrator (or in Scotland an arbiter) appointed by the Authority.

(3)The practice and procedure to be followed in connection with an Article 25 dispute referred to the Authority under this section shall be such as the Authority may consider appropriate.

(4)An order under this section—

(a)may include such incidental, supplemental and consequential provision as the person making the order considers appropriate; and

(b)shall be final.

(5)The provision that may be included in an order under this section by virtue of subsection (4)(a) above includes provision requiring either party to pay a sum in respect of the costs or expenses incurred by the person making the order (“costs provision”).

(6)In including costs provision in an order under this section, the person making the order shall have regard to the conduct and means of the parties and any other relevant circumstances.

(7)Costs provision included in an order under this section shall be enforceable—

(a)in England and Wales, as if it were a judgment of the county court;

(b)in Scotland, as if it were an extract registered decree arbitral bearing a warrant for execution issued by the sheriff.

(8)In the case of—

(a)a gas transporter, or

(b)the holder of a licence under section 7ZA,

sections 28 to 30F and 38 shall have effect as if references in those sections to a relevant requirement (other than the reference in section 28(8)) included references to any duty or other requirement imposed on that person by an order under this section.

(9)In the case of the owner of an LNG facility to which section 19D applies, section 22 shall have effect as if the directions referred to in that section as “relevant directions” included any duty or other requirement imposed on that person by an order under this section.

27DTime limit for determinationsE+W+S+N.I.

(1)An order determining an Article 25 dispute (whether made under section 27C or made under or by virtue of any other provision of this Act) shall be made within the permitted period.

(2)Subject to subsection (3), the permitted period is the period of two months beginning with the day on which the dispute is referred to the Authority.

(3)Where the person determining the dispute requests further information from anyone for the purposes of determining the dispute, the person may, by giving notice to the parties, extend the permitted period—

(a)by two months, or

(b)with the agreement of the complainant, by a longer period.

(4)If a person refers a dispute to the Authority, or purports to do so, and the Authority gives to that person a notice—

(a)specifying information which it requires in order to assess whether the dispute is an Article 25 dispute, or whether there is a dispute at all, and

(b)requesting the person to provide that information,

the dispute shall be treated for the purposes of subsection (2) as not referred to the Authority until the information is provided.]

Public gas suppliers: enforcementE+W+S

28 Orders for securing compliance with certain provisions.E+W+S

(1)Subject to subsections (2)[F273, (5) and (5A)] and section 29 below, where the Director is satisfied that a [F274licence holder] is contravening, or [F275is likely] to contravene, any relevant condition or requirement, the Director shall by a final order make such provision as is requisite for the purpose of securing compliance with that condition or requirement.

(2)Subject to [F276subsections (5) and (5A)] below, where it appears to the Director—

(a)that a [F274licence holder] is contravening, or [F275is likely] to contravene, any relevant condition or requirement; and

(b)that it is requisite that a provisional order be made,

the Director shall (instead of taking steps towards the making of a final order) by a provisional order make such provision as appears to him requisite for the purpose of securing compliance with that condition or requirement.

(3)In determining for the purposes of subsection (2)(b) above whether it is requisite that a provisional order be made, the Director shall have regard, in particular—

(a)to the extent to which any person is likely to sustain loss or damage in consequence anything which, in contravention of the relevant condition or requirement, is likely to be done, or omitted to be done, before a final order may be made; and

(b)to the fact that the effect of the provisions of this section and section 30 below is to exclude the availability of any remedy (apart from under those provisions or for negligence) in respect of any contravention of a relevant condition or requirement.

(4)Subject to [F276subsections (5) and (5A)] and section 29 below, the Director shall confirm a provisional order, with or without modifications, if—

(a)he is satisfied that the [F274licence holder] is contravening, or [F275is likely] to contravene, any relevant condition or requirement; and

(b)the provision made by the order (with any modifications) is requisite for the purpose of securing compliance with that condition or requirement.

(5)The Director shall not make a final order or make or confirm a provisional order if he is satisfied—

(a)that the duties imposed on him by [F277section [F2784AA, 4AB or 4A] preclude the making or, as the case may be, the confirmation of the order

F279(aa). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F279(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F280(c)that the most appropriate way of proceeding is under the Competition Act 1998.]

[F281(5A)The Authority is not required to make a final order or make or confirm a provisional order if it is satisfied—

(a)that the licence holder has agreed to take and is taking all such steps as it appears to the Authority for the time being to be appropriate for the licence holder to take for the purpose of securing or facilitating compliance with the condition or requirement in question; or

(b)that the contraventions were or the apprehended contraventions are of a trivial nature.]

(6)Where the Director is satisfied as mentioned in [F276subsections (5) [F282or] (5A)] above, he shall—

(a)give notice that he is so satisfied to the [F283licence holder]; and

(b)publish a copy of the notice in such manner as the Director considers appropriate for the purpose of bringing the matters to which the notice relates to the attention of persons likely to be affected by them.

(7)A final or provisional order—

(a)shall require the [F283licence holder] (according to the circumstances of the case) to do, or not to do, such things as are specified in the order or are of a description so specified;

(b)shall take effect at such time, being the earliest practicable time, as is determined by or under the order; and

(c)may be revoked at any time by the Director.

F284(7A). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(8)In this section and sections 29 [F285 to 30F] below—

  • final order” means an order under this section other than a provisional order;

  • provisional order” means an order under this section which, if not previously confirmed under subsection (4) above, will cease to have effect at the end of such period (not exceeding three months) as is determined by or under the order;

  • relevant condition”, in relation to a [F286licence holder], means any condition of his [F286licence holder];

  • [F287relevant requirement”, in relation to a licence holder, means any requirement imposed on him by or under section 9(1)[F288, (1A)] or (2), 10(2), (3) or (14), [F28910A(1),] 11(2), 12(1) or (6)[F288, 16(10),], 18(11), 22A(1) or 27A(5) or (6) above or section 33B, [F28833BA, 33C,] F290... 33D [F291, 33DB] [F292, 33F, 41A or 41B] below or any provision of paragraphs 3, 6, 15, 16, 20(5) and 28(2) of Schedule 2B to this Act [F293or section 25(5) of the Consumers, Estate Agents and Redress Act 2007 (directions to comply with requirements under section 24 of that Act)][F294, or section 43, 46 or 47 of that Act (complaints).]]

F295(9). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .]

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Amendments (Textual)

F273Words in s. 28(1) substituted (1.10.2001) by 2000 c. 27, s. 96(2) (with s. 96(7)) (with s. 96(7)); S.I. 2001/3266, arts. 1(2), 2, Sch. (subject to transitional provisions in arts. 3-20)

F274Words in s. 28(1)(2)(4) substituted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 27(1); S.I. 1996/218, art. 2

F275Words in s. 28(1)(2)(4)(a) substituted (1.7.1992) by Competition and Service (Utilities) Act 1992 (c. 43), s. 48(2); Commencement Order No. 1 made on 29.5.1992, art. 3, Sch. Pt. I.

F276Words in s. 28(2)(4)(6) substituted (1.10.2001) by 2000 c. 27, s. 96(3) (with s. 96(7)); S.I. 2001/3266, arts. 1(2), 2, Sch. (subject to transitional provisions in arts. 3-20)

F277Words in s. 28(5) substituted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 27(2)(a); S.I. 1996/218, art. 2

F278Words in s. 28(5)(a) substituted (20.12.2000) by 2000 c. 27, s. 108, Sch. 6 Pt. I para. 11; S.I. 2000/3343, art. 2, Sch. (subject to transitional provisions in arts. 3-15)

F279S. 28(5)(aa)(b) repealed (1.10.2001) by 2000 c. 27, ss. 96(4), 108, Sch. 8 (with s. 96(7)); S.I. 2001/3266, arts. 1(2), 2, Sch. (subject to transitional provisions in arts. 3-20)

F281S. 28(5A) inserted (1.10.2001) by 2000 c. 27, s. 96(5) (with s. 96(7)); S.I. 2001/3266, art. 2, Sch. (subject to transitional provisions in arts. 3-20)

F283Words in s. 28(6)(7) substituted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 27(3); S.I. 1996/218, art. 2

F284S. 28(7A) repealed (1.10.2001) by 2000 c. 27, ss. 95(2)(a), 108, Sch. 8; S.I. 2001/3266, arts. 1(2), 2, Sch. (subject to transitional provisions in arts. 3-20)

F285Words in s. 28(8) substituted (1.10.2001) by 2000 c. 27, s. 95(2)(b); S.I. 2001/3266, arts. 1(2), 2, Sch. (subject to transitional provisions in arts. 3-20)

F286Words in s. 28(8) substituted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 27(5)(a); S.I. 1996/218, art. 2

F287Definition of “relevant requirement” in s. 28(8) substituted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 27(5)(b); S.I. 1996/218, art. 2

F288Words in definition of “relevant requirement” in s. 28(8) inserted (1.10.2001) by 2000 c. 27, s. 108, Sch. 6, Pt. I para. 12(a)-(c); S.I. 2001/3266, art. 2, Sch. (subject to transitional provisions in arts. 3-20)

F289Words in definition of “relevant requirement” in s. 28(8) inserted (1.10.2001) by 2000 c. 27, s. 77(2); S.I. 2001/3266, arts. 1(2), 2, Sch. (subject to transitional provisions in arts. 3-20)

F290Word in s. 28(8) repealed (1.10.2001) by 2000 c. 27, s. 108, Sch. 6, Pt. I para. 12(c); S.I. 2001/3266, art. 2, Sch. (subject to transitional provisions in arts. 3-20)

F292Words in definition of “relevant requirement” in s. 28(8) substituted (1.10.2001) by 2000 c. 27, s. 108, Sch. 6, Pt. I para. 12(e); S.I. 2001/3266, arts. 1(2), 2, Sch. (subject to transitional provisions in arts. 3-20)

F295S. 28(9) repealed (1.10.2001) by 2000 c. 27, ss. 95(2)(a), 108, Sch. 8; S.I. 2001/3266, arts. 1(2), 2, Sch. (subject to transitional provisions in arts. 3-20)

29 Procedural requirements.E+W+S

(1)Before making a final order or confirming a provisional order, the Director shall give notice—

(a)stating that he proposes to make or confirm the order and setting out its effect;

(b)stating the relevant condition or requirement, the acts or omissions which, in his opinion, constitute or would constitute contraventions of it and the other facts which, in his opinion, justify the making or confirmation of the order; and

(c)specifying the time (not being less than [F29621] days from the date of publication of the notice) within which representations or objections to the proposed order or confirmation of the order may be made,

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

(2)A notice under subsection (1) above shall be given—

(a)by publishing the notice in such manner as the Director considers appropriate for the purpose of bringing the matters to which the notice relates to the attention of persons likely to be affected by them; and

(b)by sending a copy of the notice, and a copy of the proposed order or of the order proposed to be confirmed, to the [F297licence holder].

(3)The Director shall not make a final order, or confirm a provisional order, with modifications except with the consent of the [F297licence holder] or after complying with the requirements of subsection (4) below.

(4)The said requirements are that the Director shall—

(a)give to the [F297licence holder] such notice as appears to him requisite of his proposal to make or confirm the order with modifications;

(b)specify the time (not being less than [F29821] days from the date of the service of the notice) within which representations or objections to the proposed modifications may be made; and

(c)consider any representations or objections which are duly made and not withdrawn.

(5)Before revoking a final order or a provisional order which has been confirmed, the Director shall give notice—

(a)stating that he proposes to revoke the order and setting out its effect; and

(b)specifying the time (not being less than 28 days) from the date of publication of the notice within which representations or objections to the proposed revocation may be made,

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