Energy Act 2023

136 Modification of gas transporter licence by Secretary of State

(1) The Secretary of State may modify—

(a) the conditions of a designated person’s gas transporter licence;

(b) the terms of a designated person’s gas transporter licence;

(c) the standard conditions incorporated in gas transporter licences by virtue of section 8 of the Gas Act 1986;

(d) a document maintained in accordance with the conditions of licences of a relevant type or an agreement that gives effect to a document so maintained.

(2) The Secretary of State may exercise the power under subsection (1) only for the purpose of—

(a) facilitating or supporting the financing of the design, construction, commissioning or operation of a hydrogen pipeline project (or of hydrogen pipeline projects generally), or

(b) promoting value for money in connection with a hydrogen pipeline project (or in connection with hydrogen pipeline projects generally).

(3) When making modifications under subsection (1)(a) or (b), the Secretary of State must have regard to—

(a) the duties in sections 1 and 4(1)(b) of the Climate Change Act 2008 (carbon targets and budgets);

(b) the interests of existing and future consumers of gas conveyed through pipes, including their interests in relation to the cost and security of supply of gas;

(c) costs, expenditure or liabilities of any description that the designated person may reasonably be expected to incur in carrying out its activities;

(d) the need to secure that the designated person is able to finance its activities;

(e) the need to secure that the designated person has appropriate incentives in relation to the carrying on of its activities;

(f) such other matters as the Secretary of State considers appropriate.

In paragraph (b), “gas” has the same meaning as in Part 1 of the Gas Act 1986 (see section 48(1) of that Act).

(4) The Secretary of State may modify the conditions or terms of a gas transporter licence held by a person who is or was a designated person in connection with the revocation of the person’s designation in relation to a hydrogen pipeline project.

(5) For the purposes of subsection (1), each of the following is a relevant type of licence—

(a) a gas transporter licence;

(b) a licence under section 7A(1) of the Gas Act 1986 (gas supply licence);

(c) a licence under section 7AA of that Act (gas system planner licence);

(d) a licence under section 7AC of that Act (code manager licence).

(6) References in this section to a designated person’s activities are to the person’s activities for the purposes of—

(a) the designated project to which the modification relates, and

(b) any other designated project authorised by the person’s gas transporter licence.