Gas Act 1986

Introductory U.K.

1 The Director General of Gas Supply. U.K.

(1) The Secretary of State shall appoint an officer to be known as the Director General of Gas Supply (in this Act referred to as “the Director”) for the purpose of performing the functions assigned to the Director by this Part.

(2) An appointment of a person to hold office as the Director shall not be for a term exceeding five years; but previous appointment to that office shall not effect eligibility for re-appointment.

(3) The Director may at any time resign his office as the Director by reasonable notice addressed to the Secretary of State; and the Secretary of State may remove any person from that office on the ground of incapacity or misbehaviour.

(4) Subject to subsections (2) and (3) above, the Director shall hold and vacate office as such in accordance with the terms of his appointment.

(5) The provisions of Schedule 1 to this Act shall have effect with respect to the Director.

2 The Gas Consumers’ Council. U.K.

(1) There shall be a body corporate to be known as the Gas Consumers’ Council (in this Part referred to as “the Council”) for the purpose of performing the functions assigned to it by this Part.

(2) The Council shall consist of a chairman and such other members as the Secretary of State may from time to time appoint.

(3) In appointing members of the Council, the Secretary of State shall so far as practicable, ensure—

(a) that the members of the Council include members who, by reason of their familiarity with the special requirements and circumstances of the different areas of Great Britain or of small businesses, are able together to represent the interests of consumers of gas supplied through pipes in all those areas and of such businesses; and

(b) that the interests of consumers of gas supplied through pipes in different areas are represented by different members wherever that appears to the Secretary of State to be appropriate having regard to the manner in which the various parts of the gas supply industry in Great Britain organise themselves.

(4) A member of the Council shall hold and vacate office in accordance with the terms of the instrument appointing him and shall, on ceasing to hold office, be eligible for re-appointment.

(5) The provisions of Schedule 2 to this Act shall have effect with respect to the Council.

(6) In consequence of the provisions of this section, the National Gas Consumers’ Council and the Regional Gas Consumers’ Councils shall cease to exist.

3 Abolition of Corporation’s special privilege. E+W+S

As from such day as the Secretary of State may by order appoint for the purposes of this section and the following provisions of this Part (in this Act referred to as “the appointed day”), the privilege with respect to the supply of gas through pipes conferred on the British Gas Corporation (in this Act referred to as “the Corporation”) by section 29 of the 1972 Act shall cease to exist.

Modifications etc. (not altering text)

C1 23.8.1986 appointed for the purposes of section 3 and the following provisions of Part I (gas supply) by SI 1986/1316

4 General duties of Secretary of State and Director. E+W+S

(1) The Secretary of State and the Director shall each have a duty to exercise the functions assigned to him by this Part in the manner which he considers is best calculated—

(a) to secure that persons authorised by or under this Part to supply gas through pipes satisfy, so far as it is economical to do so, all reasonable demands for gas in Great Britain; and

(b) without prejudice to the generality of paragraph (a) above, to secure that such persons are able to finance the provision of gas supply services.

[F1 (1A) In relation to the conveyance and storage of gas the Secretary of State and the Director shall, in addition, each have a duty to exercise the functions assigned to him by this Part in the manner which he considers is best calculated to secure effective competition between persons whose business consists of or includes the supply of gas.]

(2) Subject to subsection (1) above, the Secretary of State and the Director shall each have a duty to exercise the functions assigned to him by this Part in the manner which he considers is best calculated—

(a) to protect the interests of consumers of gas supplied through pipes in respect of the prices charged and the other terms of supply, the continuity of supply and the quality of the gas supply services provided;

(b) to promote efficiency and economy on the part of persons authorised by or under this Part to supply gas through pipes and the efficient use of gas supplied through pipes;

(c) to protect the public from dangers arising from the transmission or distribution of gas through pipes or from the use of gas supplied through pipes;

(d) to enable persons to compete effectively in the supply of gas through pipes at rates which, in relation to any premises, exceed [F2 2,500 therms] a year.

(3) In performing his duty under subsection (2) above to exercise functions assigned to him in the manner which he considers is best calculated to protect the interests of consumers of gas supplied through pipes in respect of the quality of the gas supply services provided, the Secretary of State or, as the case may be, the Director shall take into account, in particular, the interests of those who are disabled or of pensionable age.

[F3 (4) Subsections (1) and (2) above do not apply in relation to the determination of disputes by the Director under or by virtue of section 14A, 15A or 33A below.]

Textual Amendments

F1 S. 4(1A) inserted (1.7.1992) by Competition and Service (Utilities) Act 1992 (c. 43), S. 38(1); Commencement Order No. 1 made on 29.5.1992, art. 3, Sch. Pt. I.

F2 Words in s. 4(2)(d) substituted (6.8.1992) by S.I. 1992/1751, art. 2(a).

F3 S. 4(4) inserted (1.7.1992) by Competition and Service (Utilities) Act 1992 (c. 43), s. 56(6), Sch. 1 para. 5; Commencement Order No. 1 made on 29.5.1992, art. 3, Sch. Pt. I.

Valid from 20/12/2000

[F4 4AB 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;

(b) the Gas and Electricity Consumer Council (in this Act referred to as “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.]

Textual Amendments

F4 S. 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)

Valid from 01/03/1996

[F5 4A Duties of Secretary of State and Director with respect to safety. E+W+S

(1) Subject to section 4(1) above, the Secretary of State and the Director shall each have a duty to exercise the functions assigned to him by or under this Part in the manner which he considers is best calculated to protect the public from dangers arising from the conveyance of gas through pipes or from the use of gas conveyed through pipes.

(2) In performing his duty under subsection (1) above, the Secretary of State or, as the case may be, the Director shall consult with and take into account any advice offered by the Health and Safety Executive.

(3) It shall also be the duty of the Director—

(a) in conjunction with the Health and Safety Executive, to prepare and from time to time revise a document setting out such means as may, with the approval of the Health and Safety Commission, be agreed between the Director and that Executive for securing co-operation and the exchange of information between them; and

(b) without prejudice to the effect or operation of any relevant statutory provisions (within the meaning of Part I of the M1 Health and Safety at Work etc. Act 1974), to exercise the functions assigned to him by or under this Part in accordance with any agreement contained in that document.

(4) As soon as practicable after agreement is reached for the purposes of—

(a) the preparation of a document in accordance with subsection (3) above, or

(b) any revision of a document prepared in accordance with that subsection,

the Director shall send a copy of the document or, as the case may be, of the revised version of it to the Secretary of State, and the Secretary of State shall lay the copy before each House of Parliament.]

Textual Amendments

F5 S. 4A inserted (1.3.1996) by 1995 c. 45, s. 2; S.I. 1996/218, art. 2

Marginal Citations

M1 1974 c. 37.

Valid from 20/12/2000

[F6 4B 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 the Director General 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).]

Textual Amendments

F6 S. 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)

Modifications etc. (not altering text)

C2 S. 4B(3) excluded (20.12.2000) by S.I. 2000/3343, art. 10(1)(b) (subject to transitional provisions in arts. 3-15)