Gas Act 1986

11 Power to require security

(1) Where any person requires a supply of gas in pursuance of subsection (1) of section 10 above—

(a) the public gas supplier 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 or, where any pipe falls to be provided and laid in pursuance of that subsection, the provision and laying of the pipe ; and

(b) if that person fails to give such security, the supplier may if he thinks fit refuse to give the supply, or to provide and lay the pipe, for so long as the failure continues.

(2) Where any person who requires a supply of gas in pursuance of subsection (1) of section 10 above enters into such a contract as is mentioned in subsection (7) or (8) of that section—

(a) the public gas supplier may require that person to give him reasonable security for the payment to him of all money which may become due to him under the contract ; and

(b) if that person fails to give such security, the supplier may if he thinks fit refuse to give the supply for so long as the failure continues.

(3) Where any person has not given such security as is mentioned in subsection (1) or (2) above, or the security given by any person has become invalid or insufficient—

(a) the public gas supplier may by notice require that person within seven days after the service of the notice, to give him reasonable security for the payment of all money which may become due to him in respect of the supply or, as the case may be, under the contract; and

(b) if that person fails to give such security, the supplier may if he thinks fit discontinue the supply for so long as the failure continues.

(4) Where any money is deposited with a public gas supplier by way of security in pursuance of this section, the supplier shall pay interest, at such rate as may from time to time be fixed by the supplier with the approval of the Director, on every sum of 50p so deposited for every three months during which it remains in the hands of the supplier.