The Gas (Exemptions) Order 2011

PART 4 Exempt shippers

Consumer’s shipping exemption

19.  A person (“A”) who is supplied at premises with gas conveyed through a pipeline system operated by a gas transporter (“B”) is an exempt shipper when arranging with B for gas to be taken out of the system by A with a view to its being supplied to A at the premises if—

(a) at the time those arrangements (“the relevant arrangements”) are being made B reasonably expects to convey gas with a view to its being supplied to A at the premises at a rate in excess of 73,200 kilowatt hours per year;

(b) at the time the relevant arrangements are being made no other arrangements exist under which gas could be lawfully taken out of the system and supplied to A at the premises or, where such arrangements (“the existing arrangements”) exist—

(i) they are arrangements between B and a gas shipper or an exempt shipper mentioned in article 20, and

(ii) the relevant arrangements are being made so as to enable gas to be taken out of the system only at a time when the existing arrangements have been determined and no other arrangements exist under which gas could be lawfully taken out of the system and supplied to A at the premises; and

(c) the relevant arrangements are being made so as to enable gas to be taken out of the system for no more than thirty-five days.

Supplier’s shipping exemption

20.  A gas supplier who does not hold a licence under section 7A(2) of the Act is an exempt shipper when arranging with a gas transporter for gas to be conveyed by means of, or taken out of, a pipeline system operated by that transporter in circumstances where—

(a) arrangements which had been in place between the transporter and a gas shipper to convey gas to premises supplied by the supplier have ended; and

(b) by virtue of a condition of its licence, the supplier is required to provide security and pay charges to the transporter, in relation to those premises, as if the supplier were the gas shipper and the arrangements had not ended.

Emergency shipper’s exemption

21.—(1) A person is an exempt shipper when arranging with a gas transporter for gas to be introduced into a pipeline system operated by that transporter at the request of that transporter for the purpose of—

(a) preventing or remedying a supply emergency that might arise after the making of the arrangements; or

(b) remedying a supply emergency which exists at the time the arrangements are being made.

(2) In this article “supply emergency” means an emergency endangering persons and arising from a loss of pressure in any pipeline system (or any part thereof).