Gas Act 1986

Authorisation of gas supply E+W+S

5 Prohibition on unauthorised supply. E+W+S

(1) Subject to subsection (2) and section 6 below, a person who supplies gas through pipes to any premises shall be guilty of an offence unless he is authorised to do so under section 7 or 8 below.

(2) Subsection (1) above is not contravened by a person supplying, for use in a building or part of a building in which he has an interest, gas supplied to the building by a person authorised to supply it by or under section 6, 7 or 8 below.

(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.

6 Exception to section 5. E+W+S

(1) Where a person (in this section referred to as a “gas supplier”) notifies the Secretary of State that he proposes to undertake a supply of gas to any premises at a rate in excess of 2,000,000 therms a year (in this section referred to as “the required rate”), section 5(1) above is not contravened by that supply unless, within six weeks of receiving the notification, the Secretary of State notifies the gas supplier either—

(a) that he is of the opinion that the rate of supply to those premises would be unlikely to exceed the required rate; or

(b) that he is unable to form an opinion as to whether the rate of supply to those premises would or would not be likely to exceed the required rate.

(2) Where a gas supplier has given the Secretary of State a notification under subsection (1) above and—

(a) the rate of supply to the premises to which the notification relates fails to exceed the required rate for three successive periods of twelve months;

(b) the gas supplier fails to furnish the Secretary of State with such information as he may require for the purpose of determining whether the condition in paragraph (a) above is fulfilled; or

(c) the gas supplier fails to afford to the Secretary of State such facilities as he may require for the purpose of verifying any information furnished in pursuance of such a requirement as is mentioned in paragraph (b) above,

the Secretary of State may direct that the gas supplier’s notification shall be treated as invalid for the purposes of that subsection except as regards gas previously supplied.

(3) As soon as practicable after receiving or giving a notification under subsection (1) above, or giving a direction under subsection (2) above, the Secretary of State shall send a copy of the notification or direction—

(a) to the Director;

(b) to the Health and Safety Executive; and

(c) to any public gas supplier whose authorised area includes the premises or any part of the premises to which the gas supplier’s notification relates.

Valid from 31/10/1994

[F1 6A Exemptions from section 5. E+W+S

(1) The Secretary of State may, after consultation with the Director, by order grant exemption from section 5(1) above, but subject to compliance with such conditions (if any) as may be specified in the order.

(2) An exemption may be granted either—

(a) to persons of a particular class; or

(b) to a particular person;

and an exemption granted to persons of a particular class shall be published in such manner as the Secretary of State considers appropriate for bringing it to the attention of persons of that class.

(3) An exemption, unless previously revoked in accordance with any term contained in the exemption, shall continue in force for such period as may be specified in or determined by or under the exemption.]

Textual Amendments

F1 S. 6A inserted (31.10.1994) by 1993 c. 1, s.2; S.I. 1994/2568, art. 2

7 Authorisation of public gas suppliers. E+W+S

(1) In this Part “public gas supplier” means any person who holds an authorisation under this section except where he is acting otherwise than for purposes connected with the supply of gas through pipes to premises in his authorised area.

(2) The Secretary of State after consultation with the Director may authorise any person to supply gas through pipes to any premises in that person’s authorised area, that is to say, so much of the area designated in the authorisation as is not for the time being designated in a subsequent authorisation under this section.

(3) An application for an authorisation under this section shall be made in the prescribed manner; and within 14 days after the making of the application, the applicant shall—

(a) give notice of the application to any public gas supplier whose authorised area includes the whole or any part of the area to which the application relates; and

(b) publish a copy of the notice in the prescribed manner.

(4) Before granting an authorisation under this section, the Secretary of State shall give notice—

(a) stating that he proposes to grant the authorisation;

(b) stating the reasons why he proposes to grant the authorisation; and

(c) specifying the time (not being less than three months from the date of publication of the notice) within which representations or objections with respect to the proposed authorisation 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 Secretary of State considers appropriate for bringing it to the attention of persons likely to be affected by the grant of the authorisation; and

(b) by sending a copy of the notice to the Health and Safety Executive and to any public gas supplier whose area includes the whole or any part of the area proposed to be designated in the authorisation.

(6) An authorisation under this section shall be in writing and, unless previously revoked in accordance with any term in that behalf contained in the authorisation, shall continue in force for such period as may be specified in or determined by or under the authorisation.

(7) An authorisation under this section may include—

(a) such conditions F2 . . ., as appear to the Secretary of State to be requisite or expedient having regard to the duties imposed by section 4 above;

(b) such conditions requiring arrangements to be made with respect to the provision of special services for meeting the needs of consumers of gas supplied through pipes who are disabled or of pensionable age as appear to the Secretary of State to be requisite or expedient having regard to those duties;

(c) conditions requiring the rendering to the Secretary of State of a payment on the grant of the authorisation or payments during the currency of the authorisation or both of such amount or amounts as may be determined by or under the authorisation; and

(d) conditions requiring the public gas supplier to furnish the Council in such manner and at such times with such information as appears to the Secretary of State to be requisite or expedient for the purpose of facilitating the exercise by the Council of the functions assigned to it by this Part or as may be reasonably required by the Council for that purpose;

and a condition included by virtue of this subsection in an authorisation under this section may contain provision for the condition to cease to have effect at such time before the end of the period referred to in subsection (6) above as may be determined by or under the authorisation.

(8) Without prejudice to the generality of paragraph (a) of subsection (7) above, conditions included by virtue of that paragraph in an authorisation under this section may require the public gas supplier—

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

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

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

(9) An authorisation under this section shall not include in the designation any area which is situated within 23 yards from a main of another public gas supplier unless—

(a) the Secretary of State is of the opinion that the main is not, and is not intended to be, a relevant main; or

(b) that other public gas supplier has consented in writing to the area being so included.

(10) As soon as practicable after granting an authorisation under this section, the Secretary of State shall send a copy of the authorisation—

(a) to the Director;

(b) to the Health and Safety Executive; and

(c) to any public gas supplier whose authorised area previously included the whole or any part of the area designated in the authorisation.

(11) Any sums received by the Secretary of State under this section shall be paid into the Consolidated Fund.

(12) In this section and section 8 below “relevant main”, in relation to a public gas supplier, means any distribution main which is being used for the purpose of giving a supply of gas to any premises at a rate not exceeding 25,000 therms a year.

(13) Neither the requirement to consult with the Director imposed by subsection (2) above nor subsections (3) and (4) above shall apply to the granting of the authorisation under this section which, having regard to the provisions of this Part, needs to be granted to the Corporation before the appointed day.

Textual Amendments

F2 Words in s. 7(7)(a) repealed (1.7.1992) by Competition and Service (Utilities) Act 1992 (c. 43), ss. 38(2), 56(7), Sch. 2; Commencement Order No. 1 made on 29.5.1992, art. 3, Sch. Pt.I.

Valid from 01/03/1996

[F3 7A 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 public gas transporter for gas to be introduced into, conveyed by means of or taken out of a pipe-line system operated by that transporter, either generally or for purposes connected with the supply of gas to any premises specified in the licence.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Textual Amendments

F3 S. 7A inserted (1.3.1996) by 1995 c. 45, s. 6; S.I. 1996/218, art. 2

Modifications etc. (not altering text)

C2 S. 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)

C3 S. 7A(1) extended (8.11.1995) by 1995 c. 45, s. 17(1), Sch. 5 Pt. I para. 1(1)(b), Pt. II para. 16(1)(b); S.I. 1996/218, art. 2

C4 S. 7A(2) extended (8.11.1995) by 1995 c. 45, s. 17(1), Sch. 5 Pt. I para. 1(1)(c), Pt. II para. 16(1)(c); S.I. 1996/218, art. 2

Valid from 01/03/1996

[F4 7B 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 public gas transporter whose authorised area includes the whole or any part of the area to which the application relates.

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

(4) A licence may include—

(a) such conditions (whether or not relating to the activities authorised by the licence) as appear to the Director to be requisite or expedient having regard to the duties imposed by section 4 or 4A above;

(b) such conditions requiring arrangements to be made with respect to the provision of special services for meeting the needs of consumers of gas conveyed through pipes who are chronically sick, disabled or of pensionable age as appear to the Director to be requisite or expedient having regard to those duties;

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

(d) conditions requiring the holder to furnish the Council in such manner and at such times with such information—

(i) as appears to the Director to be requisite or expedient for the purpose of facilitating the exercise by the Council of the functions assigned to it by this Part; or

(ii) as may be reasonably required by the Council for that purpose.

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

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

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

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

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

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

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

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

(6) Conditions included in a licence may—

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

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

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

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

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

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

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

(a) to the Health and Safety Executive; and

(b) in the case of a licence or extension under section 7 above, to any public gas transporter whose authorised area previously included the whole or any part of the area specified in the licence or extension.

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

Textual Amendments

F4 S. 7B inserted (1.3.1996) by 1995 c. 45, s. 7; S.I. 1996/218, art. 2

Modifications etc. (not altering text)

C5 S. 7B applied (with modifications) (1.3.1996) by S.I. 1996/399, art. 2(2)

C6 S. 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

8 Authorisation of other persons. E+W+S

(1) The Secretary of State after consultation with the Director, or the Director with the consent of, or in accordance with a general authority given by, the Secretary of State, may authorise any person or persons of any class to supply gas through pipes to any premises specified or of a description specified in the authorisation.

(2) An application for an authorisation under this section to be granted to a particular person shall be made in the prescribed manner; and within 14 days after the making of the application, the applicant shall give notice of the application to any public gas supplier whose authorised area includes the whole or any part of any premises to which the application relates.

(3) An authorisation under this section shall be in writing and, unless previously revoked in accordance with any term in that behalf contained in the authorisation, shall continue in force for such period as may be specified in or determined by or under the authorisation.

(4) An authorisation under this section may include—

(a) such conditions as appear to the grantor to be requisite or expedient having regard to the duties imposed by section 4(2)(c) above;

(b) such conditions as appear to the grantor to be requisite or expedient having regard to subsection (5) below; and

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

(5) An authorisation under this section shall not authorise the giving of a supply of gas to any premises situated within 25 yards from a main of a public gas supplier unless—

(a) the grantor is of the opinion that the main is not, and is not intended to be, a relevant main;

(b) the grantor has notified the public gas supplier that he is of the opinion that the rate of supply to those premises would be likely to exceed [F5 2,500 therms] a year; or

(c) the public gas supplier has consented in writing to the giving of the supply.

(6) As soon as practicable after granting an authorisation under this section, the grantor shall—

(a) send a copy of the authorisation to the Health and Safety Executive and to any public gas supplier whose authorised area includes the whole or any part of any premises to which the authorisation relates and, in the case of an authorisation granted by the Secretary of State, to the Director; and

(b) in the case of an authorisation granted to persons of any class, publish such a copy in such manner as he considers appropriate for bringing it to the attention of persons of that class.

(7) Any sums received by the Secretary of State or the Director under this section shall be paid into the Consolidated Fund.

Textual Amendments

F5 Words in s. 8(5)(b) substituted (6.8.1992) by S.I. 1992/1751, art. 2(b).

Valid from 01/03/1996

[F6 8AA Assignment of licences. E+W+S

(1) A licence shall be capable of being assigned either generally or—

(a) in the case of a licence under section 7 above, so far as relating to the whole or any part of an authorised area or any specified pipe-line system;

(b) in the case of a licence under section 7A above, so far as relating to any specified premises,

but only if it includes a condition authorising such assignment.

In this subsection “specified” means specified in the licence, or of a description, or situated in an area, so specified.

(2) A licence shall not be capable of being assigned except with the consent of the Director.

(3) In deciding whether to give his consent under subsection (2) above, the Director shall apply the same criteria as he would apply if—

(a) in the case of a general assignment, he were deciding whether to grant a corresponding licence to the assignee;

(b) in the case of any other assignment, he were deciding whether—

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

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

(4) Subject to subsection (5) below, a consent under subsection (2) above may be given subject to compliance with—

(a) such modification or other conditions as the Director considers necessary or expedient for the purpose of protecting the interests of consumers; and

(b) such incidental or consequential modification conditions as he considers necessary or expedient,

and in the case of an assignment other than a general assignment, modification conditions may make as respects so much of the licence as is proposed to be retained by the assignor provision different from that made as respects so much of the licence as is proposed to be assigned.

(5) The Director shall—

(a) give the Health and Safety Executive not less than 28 days’ notice of any proposal of his to give a consent under subsection (2) above; and

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

and if, before the expiry of the time specified in a notice given to the Secretary of State under paragraph (b) above, the Secretary of State directs the Director not to impose the condition, the Director shall comply with the direction.

(6) A licence may include conditions which must be complied with before the licence can be assigned.

(7) An assignment, or purported assignment, of a licence shall be void—

(a) if the licence is not capable of assignment;

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

(c) if there has, before the assignment or purported assignment, been a contravention of a condition subject to compliance with which the consent required by subsection (2) above is given.

(8) A licence shall not be capable of being assigned under or by virtue of any other provision of this Act.

(9) In this section—

• “assignment” includes any form of transfer and cognate expressions shall be construed accordingly;

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

(10) Any reference in this section to “assignment” shall be construed in Scotland as a reference to assignation.]

Textual Amendments

F6 S. 8AA inserted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 1; S.I. 1996/218, art. 2

[8A F7 Modification or removal of the 25,000 therm limits. E+W+S

(1) The Secretary of State may by order amend section 4(2)(d) or 8(5)(b) above or section 10(5) or 14(3) or (4)(b) below by substituting—

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

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

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

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

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

(3) If the Secretary of State considers that it is appropriate to remove the limit for the time being specified in sections 4(2)(d) and 8(5)(b) above and section 14(3) and (4)(b) below he may make an order repealing—

(a) in section 4(2)(d) above, the words from “at rates” to the end;

(b) section 8(5) above;

(c) in section 14(3) below, the words from “but this subsection” to the end; and

(d) in section 14(4) below, the words from “if either” to the end.

(4) Before making any order under this section, the Secretary of State shall consult the Director.]

Textual Amendments

F7 S. 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.

Authorisation of gas supply E+W+S

5 Prohibition on unauthorised supply. E+W+S

(1) Subject to subsection (2) and section 6 below, a person who supplies gas through pipes to any premises shall be guilty of an offence unless he is authorised to do so under section 7 or 8 below.

(2) Subsection (1) above is not contravened by a person supplying, for use in a building or part of a building in which he has an interest, gas supplied to the building by a person authorised to supply it by or under section 6, 7 or 8 below.

(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.

6 Exception to section 5. E+W+S

(1) Where a person (in this section referred to as a “gas supplier”) notifies the Secretary of State that he proposes to undertake a supply of gas to any premises at a rate in excess of 2,000,000 therms a year (in this section referred to as “the required rate”), section 5(1) above is not contravened by that supply unless, within six weeks of receiving the notification, the Secretary of State notifies the gas supplier either—

(a) that he is of the opinion that the rate of supply to those premises would be unlikely to exceed the required rate; or

(b) that he is unable to form an opinion as to whether the rate of supply to those premises would or would not be likely to exceed the required rate.

(2) Where a gas supplier has given the Secretary of State a notification under subsection (1) above and—

(a) the rate of supply to the premises to which the notification relates fails to exceed the required rate for three successive periods of twelve months;

(b) the gas supplier fails to furnish the Secretary of State with such information as he may require for the purpose of determining whether the condition in paragraph (a) above is fulfilled; or

(c) the gas supplier fails to afford to the Secretary of State such facilities as he may require for the purpose of verifying any information furnished in pursuance of such a requirement as is mentioned in paragraph (b) above,

the Secretary of State may direct that the gas supplier’s notification shall be treated as invalid for the purposes of that subsection except as regards gas previously supplied.

(3) As soon as practicable after receiving or giving a notification under subsection (1) above, or giving a direction under subsection (2) above, the Secretary of State shall send a copy of the notification or direction—

(a) to the Director;

(b) to the Health and Safety Executive; and

(c) to any public gas supplier whose authorised area includes the premises or any part of the premises to which the gas supplier’s notification relates.

7 Authorisation of public gas suppliers. E+W+S

(1) In this Part “public gas supplier” means any person who holds an authorisation under this section except where he is acting otherwise than for purposes connected with the supply of gas through pipes to premises in his authorised area.

(2) The Secretary of State after consultation with the Director may authorise any person to supply gas through pipes to any premises in that person’s authorised area, that is to say, so much of the area designated in the authorisation as is not for the time being designated in a subsequent authorisation under this section.

(3) An application for an authorisation under this section shall be made in the prescribed manner; and within 14 days after the making of the application, the applicant shall—

(a) give notice of the application to any public gas supplier whose authorised area includes the whole or any part of the area to which the application relates; and

(b) publish a copy of the notice in the prescribed manner.

(4) Before granting an authorisation under this section, the Secretary of State shall give notice—

(a) stating that he proposes to grant the authorisation;

(b) stating the reasons why he proposes to grant the authorisation; and

(c) specifying the time (not being less than three months from the date of publication of the notice) within which representations or objections with respect to the proposed authorisation 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 Secretary of State considers appropriate for bringing it to the attention of persons likely to be affected by the grant of the authorisation; and

(b) by sending a copy of the notice to the Health and Safety Executive and to any public gas supplier whose area includes the whole or any part of the area proposed to be designated in the authorisation.

(6) An authorisation under this section shall be in writing and, unless previously revoked in accordance with any term in that behalf contained in the authorisation, shall continue in force for such period as may be specified in or determined by or under the authorisation.

(7) An authorisation under this section may include—

(a) such conditions F2 . . ., as appear to the Secretary of State to be requisite or expedient having regard to the duties imposed by section 4 above;

(b) such conditions requiring arrangements to be made with respect to the provision of special services for meeting the needs of consumers of gas supplied through pipes who are disabled or of pensionable age as appear to the Secretary of State to be requisite or expedient having regard to those duties;

(c) conditions requiring the rendering to the Secretary of State of a payment on the grant of the authorisation or payments during the currency of the authorisation or both of such amount or amounts as may be determined by or under the authorisation; and

(d) conditions requiring the public gas supplier to furnish the Council in such manner and at such times with such information as appears to the Secretary of State to be requisite or expedient for the purpose of facilitating the exercise by the Council of the functions assigned to it by this Part or as may be reasonably required by the Council for that purpose;

and a condition included by virtue of this subsection in an authorisation under this section may contain provision for the condition to cease to have effect at such time before the end of the period referred to in subsection (6) above as may be determined by or under the authorisation.

(8) Without prejudice to the generality of paragraph (a) of subsection (7) above, conditions included by virtue of that paragraph in an authorisation under this section may require the public gas supplier—

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

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

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

(9) An authorisation under this section shall not include in the designation any area which is situated within 23 yards from a main of another public gas supplier unless—

(a) the Secretary of State is of the opinion that the main is not, and is not intended to be, a relevant main; or

(b) that other public gas supplier has consented in writing to the area being so included.

(10) As soon as practicable after granting an authorisation under this section, the Secretary of State shall send a copy of the authorisation—

(a) to the Director;

(b) to the Health and Safety Executive; and

(c) to any public gas supplier whose authorised area previously included the whole or any part of the area designated in the authorisation.

(11) Any sums received by the Secretary of State under this section shall be paid into the Consolidated Fund.

(12) In this section and section 8 below “relevant main”, in relation to a public gas supplier, means any distribution main which is being used for the purpose of giving a supply of gas to any premises at a rate not exceeding 25,000 therms a year.

(13) Neither the requirement to consult with the Director imposed by subsection (2) above nor subsections (3) and (4) above shall apply to the granting of the authorisation under this section which, having regard to the provisions of this Part, needs to be granted to the Corporation before the appointed day.

Textual Amendments

F2 Words in s. 7(7)(a) repealed (1.7.1992) by Competition and Service (Utilities) Act 1992 (c. 43), ss. 38(2), 56(7), Sch. 2; Commencement Order No. 1 made on 29.5.1992, art. 3, Sch. Pt.I.

8 Authorisation of other persons. E+W+S

(1) The Secretary of State after consultation with the Director, or the Director with the consent of, or in accordance with a general authority given by, the Secretary of State, may authorise any person or persons of any class to supply gas through pipes to any premises specified or of a description specified in the authorisation.

(2) An application for an authorisation under this section to be granted to a particular person shall be made in the prescribed manner; and within 14 days after the making of the application, the applicant shall give notice of the application to any public gas supplier whose authorised area includes the whole or any part of any premises to which the application relates.

(3) An authorisation under this section shall be in writing and, unless previously revoked in accordance with any term in that behalf contained in the authorisation, shall continue in force for such period as may be specified in or determined by or under the authorisation.

(4) An authorisation under this section may include—

(a) such conditions as appear to the grantor to be requisite or expedient having regard to the duties imposed by section 4(2)(c) above;

(b) such conditions as appear to the grantor to be requisite or expedient having regard to subsection (5) below; and

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

(5) An authorisation under this section shall not authorise the giving of a supply of gas to any premises situated within 25 yards from a main of a public gas supplier unless—

(a) the grantor is of the opinion that the main is not, and is not intended to be, a relevant main;

(b) the grantor has notified the public gas supplier that he is of the opinion that the rate of supply to those premises would be likely to exceed [F5 2,500 therms] a year; or

(c) the public gas supplier has consented in writing to the giving of the supply.

(6) As soon as practicable after granting an authorisation under this section, the grantor shall—

(a) send a copy of the authorisation to the Health and Safety Executive and to any public gas supplier whose authorised area includes the whole or any part of any premises to which the authorisation relates and, in the case of an authorisation granted by the Secretary of State, to the Director; and

(b) in the case of an authorisation granted to persons of any class, publish such a copy in such manner as he considers appropriate for bringing it to the attention of persons of that class.

(7) Any sums received by the Secretary of State or the Director under this section shall be paid into the Consolidated Fund.

Textual Amendments

F5 Words in s. 8(5)(b) substituted (6.8.1992) by S.I. 1992/1751, art. 2(b).