Legalize / United Kingdom / Public General Act

Gas Act 1986

Type Public General Act

Publication 1986-07-25

Last updated 2025-11-13

State In force

Department Statute Law Database

Source legislation.gov.uk

articles Not indexed

Reform history JSON API

Part I — Gas Supply

Introductory

Scottish Ministers' promotion of reductions in home-heating costs: gas suppliers

1

Gas transporters

2

Abolition of Corporation's special privilege

3

General duties of Secretary of State and Director

4

(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.

(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 25,000 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.

Licensing of activities relating to gas

Prohibition on unauthorised supply

5

(1) Subject to section 6A below and Schedule 2A to this Act, a person who—

(a) otherwise than by means of a gas interconnector conveys gas through pipes to any premises, or to a pipe-line system operated by a gas transporter;

(aa) participates in the operation of a gas interconnector;

(b) supplies to any premises gas which has been conveyed to those premises through pipes; ...

(c) arranges with a gas transporter for gas to be introduced into, conveyed by means of or taken out of a pipe-line system operated by that transporter ; or

(d) provides a smart meter communication service ; or

(e) performs the function of code manager in relation to a designated gas licence document (see further subsections (11A) and (11B)),

shall be guilty of an offence unless he is authorised to do so by a licence.

(2) The exceptions to subsection (1) above which are contained in Schedule 2A to this Act shall have effect.

(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.

(5) Any reference in this Part to the conveyance by any person of gas through pipes to any premises is a reference to the conveyance by him of gas through pipes to those premises with a view to the gas being supplied to those premises by any person, or being used in those premises by the holder of a licence under section 7A(2) below.

(6) A reference in this Part to participating in the operation of a gas interconnector is a reference to—

(a) co-ordinating and directing the conveyance of gas into or through a gas interconnector; or

(b) making such an interconnector available for use for the conveyance of gas.

(7) For the purposes of subsection (6)(b) a person shall not be regarded as making something available just because he consents to its being made available by another.

(8) In this Part “gas interconnector” means so much of any pipeline system as—

(a) is situated at a place within the jurisdiction of Great Britain; and

(b) subsists wholly or primarily for the purposes of the conveyance of gas (whether in both directions or in only one) between Great Britain and another country or territory.

(9) For the purposes of this section a place is within the jurisdiction of Great Britain if it is in Great Britain, in the territorial sea adjacent to Great Britain or in an area designated under section 1(7) of the Continental Shelf Act 1964.

(10) In this section “pipe-line system” includes the pipes and any associated apparatus comprised in that system.

(11) A reference in this Part to providing a smart meter communication service is a reference to making arrangements with each domestic supplier to provide a service, for such suppliers, of communicating relevant information to and from smart meters through which gas is supplied to domestic premises.

(11A) A reference in this Part to a person (“P”) performing the function of code manager in relation to a designated gas licence document is a reference to making arrangements, with the persons to whom subsection (11B) applies, under which P is responsible for the governance of the document.

(11B) This subsection applies to the holder of a licence for the purposes of section 5 where a condition of the licence—

(a) requires the holder to comply with, or to enter into arrangements that conform with, the designated gas licence document in question, or

(b) imposes obligations on the holder that do not apply to the holder where the holder complies with that document.

(12) In this section—

“designated gas licence document” means a document that is—maintained in accordance with the conditions of a licence for the purposes of section 5, anddesignated under section 182 of the Energy Act 2023;

“domestic supplier” means a gas supplier—who is authorised, in accordance with the conditions of a licence, to supply gas to domestic premises; andwho supplies gas to domestic premises in accordance with that licence;

“external electronic communications network” means a network which—is an electronic communications network, within the meaning of section 32 of the Communications Act 2003; anddoes not form part of a smart meter;

“relevant information” means information relating to the supply of gas; ...

“smart meter” means—a gas meter which can send and receive information using an external electronic communications network; ora gas meter and a device which is associated with or ancillary to that meter and which enables information to be sent to and received by the meter using an external electronic communications network.

Exception to section 5

6

Authorisation of public gas suppliers

7

(1) In this Part “gas transporter” means the holder of a licence under this section except where the holder is acting otherwise than for purposes connected with—

(a) the carrying on of activities authorised by the licence;

(b) the conveyance of gas through pipes which—

(i) are situated in an authorised area of his; or

(ii) are situated in an area which was an authorised area of his, or an authorised area of a previous holder of the licence, and were so situated at a time when it was such an area; or

(c) the conveyance through pipes of gas which is in the course of being conveyed to or from a country or territory outside Great Britain.

(2) Subject to subsections (3) and (3A) below, the Director may grant a licence authorising any person to do either or both of the following, namely—

(a) to convey gas through pipes to any premises in an authorised area of his, that is to say, any area specified in the licence as it has effect for the time being;

(b) to convey gas through pipes either to any pipe-line system operated by another gas transporter, or to any pipe-line system so operated which is specified in the licence or an extension of the licence.

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

(3A) A licence authorising the conveyance of gas through pipes to any premises must not be granted under this section to a person who is a gas producer unless it is a condition of the licence that the person must not convey gas through pipes to 100,000 or more sets of premises.

(4) Subject to subsection (3A), the Director may, with the consent of the licence holder, direct that any licence under this section shall have effect—

(a) as if any area or pipe-line system specified in the direction were specified in the licence;

(b) in the case of a licence under subsection (2)(a) above, as if it were also a licence under subsection (2)(b) above and any pipe-line system specified in the direction were specified in the licence; or

(c) in the case of a licence under subsection (2)(b) above, as if it were also a licence under subsection (2)(a) above and any area 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.

(4A) The Authority may, with the consent of the licence holder, direct that any licence under this section shall have effect as if any area or pipe-line system 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.

(5) Before granting a licence . . . under this section, the Director shall give notice—

(a) stating that he proposes to grant the licence . . .;

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

(c) specifying the time from the date of publication of the notice (not being less than two months . . .) within which represent- ations or objections with respect to the proposed licence . . . may be made,

and shall consider any representations or objections which are duly made and not withdrawn.

(6) A notice under subsection (5) above shall be given—

(a) by publishing the notice in such manner as the Director considers appropriate for bringing it to the attention of persons likely to be affected by the grant of the licence . . .; and

(b) by sending a copy of the notice to the Secretary of State, to the Health and Safety Executive and to any gas transporter whose area includes the whole or any part of the area proposed to be specified in the licence . . ..

(7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(9) As soon as practicable after the granting of a licence under this section, the gas transporter shall publish, in such manner as the Director considers appropriate for bringing it to the attention of persons who are likely to do business with the transporter, a notice—

(a) stating that the licence has been granted; and

(b) explaining that, as a result, it might be necessary for those persons to be licensed under section 7A below.

(10) In this section—

(za) “gas producer” means a person who—

(i) gets natural gas from its natural condition in strata otherwise than as an unintended consequence of the storage of gas, and requires a licence under section 3 of the Petroleum Act 1998 (licences to search and bore for and get petroleum) to do so or would require such a licence if getting the gas in Great Britain; or

(ii) produces any other gas, including in particular biomethane, which is suitable for conveyance through pipes to premises in accordance with a licence under section 7;

(a) “relevant main” has the same meaning as in section 10 below;

(b) references to an area specified in a licence or direction include references to an area included in an area so specified; and

(c) references to a pipe-line system specified in a licence or direction include references to a pipe-line system of a description, or situated in an area, so specified.

(11) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Authorisation of other persons

8

(1) Subject to subsections (2) and (3) ... , each condition which by virtue of section 81(2) of the Utilities Act 2000 or section 150 of the Energy Act 2004 is a standard condition for the purposes of—

(a) licences under section 7 above;

(aa) licences under section 7ZA above;

(b) licences under subsection (1) of section 7A above; ...

(d) licences under section 7AC,

shall be incorporated (that is to say, incorporated by reference) in each licence under that section or, as the case may be, that subsection.

(2) Subsection (1) above shall not apply in relation to a licence under section 7A(1) above which authorises only the supply to premises of gas which has been conveyed to the premises otherwise than by a gas transporter.

(3) Subject to the following provisions of this section, the Director may, in granting a licence, modify any of the standard conditions to such extent as he considers requisite to meet the circumstances of the particular case.

(4) Before making any modifications under subsection (3) above, the Director shall give notice—

(a) stating that he proposes to make the modifications and setting out their effect;

(b) stating the reasons why he proposes to make the modifications; and

(c) specifying the time (not being less than 28 days from the date of publication of the notice) within which representations or objections with respect to the proposed modifications 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 Director considers appropriate for the purpose of bringing the notice to the attention of persons likely to be affected by the making of the modifications; and

(b) by sending a copy of the notice to the Secretary of State, to the Health and Safety Executive , to Citizens Advice and to Consumer Scotland.

(6) If, within the time specified in the notice under subsection (4) above, the Secretary of State directs the Director not to make any modification, the Director shall comply with the direction.

(6A) The Authority shall not make any modifications under subsection (3) above of a condition of a licence under section 7ZA unless it is of the opinion that the modifications are such that—

(a) the licence holder would not be unduly disadvantaged in competing with one or more other holders of licences under that section; and

(b) no other holder of a licence under that section would be unduly disadvantaged in competing with the holder of the licence to be modified or with any one or more other holders of licences under that section.

(7) The Director shall not make any modifications under subsection (3) above of a condition of a licence under subsection (1) or (2) of section 7A above unless he is of the opinion that the modifications are such that.

(a) the licence holder would not be unduly disadvantaged in competing with other holders of a licence under that subsection; and

(b) no other holder of such a licence would be unduly disadvantaged in competing with other holders of such licences (including the holder of the licence being modified)

(8) The modification under subsection (3) above of a condition of a licence shall not prevent so much of the condition as is not so modified being regarded as a standard condition for the purposes of this Part.

(9) In this section “modify” includes fail to incorporate and “modification” shall be construed accordingly.

Powers and duties of public gas transporters

General powers and duties

9

(1) It shall be the duty of a gas transporter as respects each authorised area of his—

(a) to develop and maintain an efficient and economical pipe-line system for the conveyance of gas; and

(b) subject to paragraph (a) above, to comply, so far as it is economical to do so, with any reasonable request for him —

to connect to that system, and convey gas by means of that system to, any premises ; or.

(ii) to connect to that system a pipe-line system operated by an authorised transporter.

(1A) It shall also be the duty of a gas transporter to facilitate competition in the supply of gas.

(2) It shall also be the duty of a gas transporter to avoid any undue preference or undue discrimination—

(a) in the connection of premises , or a pipe-line system operated by an authorised transporter, to any pipe-line system operated by him; or

(b) in the terms on which he undertakes the conveyance of gas by means of such a system.

(2A) The conditions of a licence held by a gas transporter may include a condition requiring the gas transporter, in performing a duty under subsection (1), (1A) or (2), to have regard to the interests of existing and future consumers in relation to electricity conveyed by distribution systems or transmission systems (within the meaning of the Electricity Act 1989).

(3) The following provisions shall have effect, namely—

(a) Schedule 3 to this Act (which provides for the acquisition of land by gas transporters); and

(b) Schedule 4 to this Act (which relates to the breaking up of streets and bridges by such transporters).

Duty to supply certain premises

10

(1) Subsection (2) below applies to any premises in an authorised area of a gas transporter which—

(a) are situated within 23 metres from a relevant main of the transporter; or

(b) could be connected to any such main by a pipe supplied and laid, or proposed to be supplied and laid, by the owner or occupier of the premises.

(2) Subject to the provisions of this Part and any regulations made under those provisions, a gas transporter shall, on being required to do so by the owner or occupier of any premises to which this subsection applies—

(a) in the case of premises falling within paragraph (a) of subsection (1) above, connect the premises to the relevant main, and supply and lay any pipe that may be necessary for that purpose; and

(b) in the case of premises falling within paragraph (b) of that subsection, connect the premises to the relevant main by the pipe there mentioned;

and in the following provisions of this section “connect”, in relation to any premises, means connect to a relevant main of a gas transporter and “connection” shall be construed accordingly.

(3) Subject to the provisions of this Part and any regulations made under those provisions, where any premises are connected (whether by virtue of subsection (2) above or otherwise), the gas transporter shall maintain the connection until such time as it is no longer required by the owner or occupier of the premises.

(3A) A gas transporter may require any person who requires a connection under subsection (2)(b) to accept any terms—

(a) indemnifying the transporter in respect of any liability connected with the laying of the pipe;

(b) which it is reasonable in all the circumstances for that person to be required to accept.

(4) Where any person requires a connection in pursuance of subsection (2) above, he shall serve on the gas transporter a notice specifying—

(a) the premises in respect of which the connection is required; and

(b) the day (not being earlier than a reasonable time after the service of the notice) upon which the connection is required to be made.

(5) Where any pipe is supplied and laid by a gas transporter in pursuance of subsection (2)(a) above, the cost of supplying and laying the pipe shall, if and to the extent that the transporter so requires and the conditions of his licence so allow, be defrayed by the person requiring the connection.

(5A) Where in pursuance of subsection (2)(b) a gas transporter connects any premises to a relevant main by a pipe supplied and laid by the owner or occupier of the premises, the cost of making the connection shall, if and to the extent that the transporter so requires and the conditions of his licence so allow, be defrayed by the person supplying and laying the pipe.

(6) Where at any time a gas transporter connects any premises under subsection (2)(b) above—

(a) the pipe supplied and laid by the owner or occupier of the premises; and

(b) any rights or liabilities of the owner or occupier which relate to the laying, maintenance, repair, alteration or removal of the pipe,

shall at that time vest in and become property , rights or liabilities of the transporter.

(7) The Director may, with the consent of the Secretary of State, make provision by regulations for entitling a gas transporter to require a person requiring a connection in pursuance of subsection (2) above to pay to the transporter an amount in respect of the expenses of the laying of the main used for the purpose of making that connection if—

(a) the connection is required within the prescribed period after the laying of the main;

(b) a person for the purpose of connecting whose premises the main was laid has made a payment to the transporter in respect of those expenses;

(c) the amount required does not exceed any amount paid in respect of those expenses by such a person or by any person previously required to make a payment under the regulations; and

(d) the transporter has not recovered those expenses in full.

(8) Nothing in subsection (2) or (3) above shall be taken as requiring a gas transporter to connect, or maintain the connection of, any premises if the supply of gas to those premises is likely to exceed 75,000 therms in any period of twelve months.

(9) Nothing in subsection (2) or (3) above shall be taken as requiring a gas transporter to connect, or to maintain the connection of, any premises if—

(a) he is prevented from doing so by circumstances not within his control;

(b) circumstances exist by reason of which his doing so would or might involve danger to the public, and he has taken all such steps as it was reasonable to take both to prevent the circumstances from occurring and to prevent them from having that effect; or

(c) in the case of premises falling within paragraph (b) of subsection (1) above, the pipe supplied and laid by the owner or occupier of the premises is not fit for the purpose.

(10) Where—

(a) any person requires a connection to be made or maintained in pursuance of subsection (2) or (3) above;

(b) the making or maintenance of the connection would involve a new or increased supply of gas to the premises in question;

(c) the gas transporter reasonably expects that, if the connection were made or maintained, gas would be supplied to the premises in question at a rate exceeding 2,500 therms a year; and

(d) the new or increased supply is such that the connection cannot be made or maintained without the laying of a new main, or the enlarging of an existing main, or the construction or enlarging of any other works required for the conveyance of gas,

the transporter may, if he thinks fit, refuse to make or maintain the connection unless that person enters into a written contract with the transporter to make such payments to him as he may reasonably require having regard to the expense to be incurred in laying or enlarging the main or constructing or enlarging the other works and the extent to which it is reasonable to expect that the transporter will recover that expense from elsewhere.

(11) If and to the extent that regulations made by the Director with the consent of the Secretary of State so provide, subsection (10) above shall have effect as if—

(a) the reference in paragraph (d) to the laying of a new main, the enlarging of an existing main or the construction or enlarging of any other works required for the conveyance of gas included a reference to a new main which had previously been laid, an existing main which had previously been enlarged or any other works required for the conveyance of gas which had previously been constructed or enlarged;

(b) the reference to the expense to be incurred in laying or enlarging the main or constructing or enlarging the other works included a reference to the expense which had been so incurred; and

(c) the reference to the extent to which it is reasonable to expect that the transporter will recover that expense from elsewhere included a reference to the extent to which the transporter had been able so to recover that expense.

(12) Subject to subsection (13) below, in this section “relevant main”, in relation to a gas transporter, means any distribution main in an authorised area of his which is being used for the purpose of giving a supply of gas to any premises in that area at a rate not exceeding 75,000 therms a year.

(13) Any pipe which—

(a) vests in and becomes the property of a gas transporter by virtue of subsection (6) above; and

(b) apart from this subsection, would be a relevant main for the purposes of this section,

shall be such a main if, and only if, it has been declared to be such a main by the transporter.

(14) A gas transporter shall make a declaration under subsection (13) above in respect of each pipe falling within that subsection which is fit for the purpose of being a relevant main; and a declaration under that subsection shall not be capable of being revoked.

Power to require security

11

(1) Where any person requires a connection in pursuance of paragraph (a) of section 10(2) above and a pipe falls to be supplied and laid by the gas transporter in pursuance of that paragraph—

(a) the transporter 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 and laying of the pipe; and

(b) if that person fails to give such security or, where any security given by him has become invalid or insufficient, fails to provide alternative or additional security, the transporter may if he thinks fit refuse to supply and lay the pipe for so long as the failure continues.

(2) Where any amount is deposited with a gas transporter by way of security in pursuance of this section, the transporter shall pay interest on that amount, at such rate as may from time to time be fixed by the transporter with the approval of the Director, in respect of the period during which it remains in the hands of the transporter.

(3) In this section “connection” shall be construed in accordance with section 10(2) above.

Standard method of charge

12

(1) Except in prescribed cases, the number of therms or kilowatt hours conveyed by a gas transporter to premises, or to pipe-line systems operated by other gas transporters, shall be calculated in the prescribed manner—

(a) on the basis of calorific values of the gas determined by the transporter in accordance with regulations under this section, or so determined by another gas transporter and adopted by the transporter in accordance with such regulations; or

(b) if and to the extent that regulations under this section so provide and the transporter thinks fit, on the basis of declared calorific values of the gas;

and regulations under this section shall be made by the Director with the consent of the Secretary of State.

(2) In this Part—

“calorific value”, in relation to any gas, means the number of megajoules (gross) which would be produced by—the combustion of one cubic metre of the gas measured at a temperature of 15°C and a pressure of 1013.25 millibars; orif regulations under this section so provide, the combustion of one kilogram of the gas,containing in either case, if the Director so determines, such an amount of water vapour as is specified in the determination;

“declared calorific value”, in relation to any gas conveyed by a gas transporter, means a calorific value declared by the transporter in accordance with regulations under this section, or so declared by another gas transporter and adopted by the transporter in accordance with such regulations.

(3) Regulations under this section may make provision as to the manner in which prescribed information with respect to the making of calculations in accordance with the regulations is to be made available to other licence holders and to the public.

(4) Regulations under this section made for the purposes of subsection (1)(a) above may make provision—

(a) for requiring determinations of calorific values of gas conveyed by gas transporters to be made on the basis of samples of gas taken at such places or premises, at such times and in such manner as the Director may direct;

(b) for requiring such determinations to be made at such places or premises, at such times and in such manner as the Director may direct;

(c) as to the manner in which the results of such determinations are to be made available to other licence holders and to the public;

(d) for requiring such premises, apparatus and equipment as the Director may direct to be provided and maintained by gas transporters for the purpose of making such determinations;

(e) for requiring gas transporters to carry out tests of apparatus and equipment so provided and maintained by them; and

(f) for requiring the results of such tests to be notified to the Director or to any person appointed under section 13(1) below, and to be made available to other licence holders and to the public.

(5) Regulations under this section made for the purposes of subsection (1)(b) above may make provision—

(a) for requiring declarations of calorific values of gas conveyed by gas transporters to be made at such times and in such manner as the Director may direct;

(b) as to the times when such declarations are to take effect, and as to the manner in which the calorific values declared are to be made available to other licence holders and to the public;

(i) the calorific values of the gas conveyed by them for any period; and

(ii) the calorific values declared by them for that period;

(d) for requiring gas transporters to carry out tests of gas for the purpose of ascertaining whether they are complying with the requirements of regulations made by virtue of paragraph (c) above;

(e) for requiring such tests to be carried out at such places or premises, at such times and in such manner as the Director may direct; and

(f) for requiring the results of such tests to be notified to the Director or to any person appointed under section 13(1) below, and to be made available to other licence holders and to the public.

(6) Subject to subsection (7) below, the Director may by notice in writing require a gas transporter to give to the Director, or to any person appointed by him for the purpose, within such time and at such place as may be specified in the notice, such information as the Director may reasonably require for the purpose of making regulations under this section or section 13 below or of giving directions under such regulations.

(7) A gas transporter shall not be required under subsection (6) above to give any information which he could not be compelled to give in evidence in civil proceedings before the court; and in this subsection “the court” means—

(a) in relation to England and Wales, the High Court;

(b) in relation to Scotland, the Court of Session.

Alternative method of charge

13

(1) The Director shall appoint competent and impartial persons—

(a) to carry out tests of apparatus and equipment provided and maintained by gas transporters in pursuance of regulations made by virtue of subsection (4)(d) of section 12 above for the purpose of ascertaining whether they comply with the regulations;

(b) to carry out tests of gas conveyed by gas transporters where the number of therms or kilowatt hours falls to be calculated in accordance with subsection (1)(b) of that section for the purpose of ascertaining whether the transporters are complying with the requirements of regulations made by virtue of subsection (5)(c) of that section; and

(c) generally to assist the Director in exercising his functions under, or under regulations made under, this section or that section.

(2) Regulations under this section, which shall be made by the Director with the consent of the Secretary of State, may make provision—

(a) for requiring such tests as are mentioned in subsection (1)(b) above to be carried out at such places or premises as the Director may direct;

(b) for requiring such premises, apparatus and equipment as the Director may direct to be provided and maintained by gas transporters for the purpose of carrying out such tests;

(c) for requiring samples of gas to be taken by gas transporters at such places or premises, at such times and in such manner as the Director may direct; and

(d) for requiring samples of gas so taken to be provided by gas transporters, for the purpose of carrying out such tests, at such places or premises, at such times and in such manner as the Director may direct.

(3) Regulations under this section may make provision—

(a) for persons representing the public gas transporter concerned to be present during the carrying out of such tests as are mentioned in subsection (1) above;

(b) as to the manner in which the results of such tests are to be made available to other licence holders and to the public; and

(c) for conferring powers of entry on property owned or occupied by gas transporters for the purpose of carrying out such tests and otherwise for the purposes of this section or section 12 above.

(4) There shall be paid out of money provided by Parliament to persons appointed under subsection (1) above who are members of the Director’s staff such remuneration and such allowances as may be determined by the Director with the approval of the Treasury, and such pensions as may be so determined may be paid out of money provided by Parliament to or in respect of such persons.

(5) Every person who is a gas transporter during any period shall pay to the Director such proportion (if any) as the Director may determine of—

(a) any sums paid by him under subsection (4) above in respect of that period; and

(b) such part of his other expenses for that period as he may with the consent of the Treasury determine to be attributable to his functions under section 12 above or this section;

and any liability under this subsection to pay to the Director sums on account of pensions (whether paid by him under subsection (4) above or otherwise) shall, if the Director so determines, be satisfied by way of contributions calculated, at such rate as may be determined by the Treasury, by reference to remuneration.

(6) Any sums received by the Director under this section shall be paid into the Consolidated Fund.

Fixing of tariffs

14

Public gas supply code

15

Gas conveyed by public gas transporters and others

Standards of quality

16

(1) The Secretary of State shall, after consultation with the Director and public gas suppliers, prescribe standards of pressure, purity and uniformity of calorific value to be complied with by the suppliers in supplying gas, and may after such consultation prescribe other standards with respect to the properties, condition and composition of gas so supplied.

(2) The Secretary of State shall, after consultation with the Director and such persons and organisations as the Secretary of State considers appropriate, prescribe standards of pressure and purity to be complied with by persons other than public gas suppliers in supplying gas through pipes, and may after such consultation prescribe standards of uniformity of calorific value and other standards with respect to the properties, condition and composition of gas so supplied.

(3) The Secretary of State shall appoint competent and impartial persons to carry out tests of gas supplied through pipes for the purpose of ascertaining whether it conforms with the standards prescribed under this section and (in the case of gas supplied by a public gas supplier) whether it is of or above the declared calorific value.

(4) Regulations may make provision—

(a) for requiring such tests to be carried out at such places as the Secretary of State may direct;

(b) for requiring such premises, apparatus and equipment as the Secretary of State may direct to be provided and maintained by persons supplying gas through pipes (in the following provisions of this section referred to as gas suppliers) for the purpose of carrying out such tests;

(d) for the manner in which the results of such tests are to be made available to the public; and

(e) for conferring powers of entry on property of gas suppliers for the purpose of deciding where tests are to be carried out and otherwise for the purposes of this section.

(5) There shall be paid out of money provided by Parliament to the persons appointed under subsection (3) above such remuneration and such allowances as may be determined by the Secretary of State with the approval of the Treasury, and such pensions as may be so determined may be paid out of money provided by Parliament to or in respect of those persons.

(6) Every person who is a gas supplier during any period shall pay to the Secretary of State such proportion as the Secretary of State may determine of—

(a) any sums paid by him under subsection (5) above in respect of that period; and

(b) such part of his other expenses for that period as he may with the consent of the Treasury determine to be attributable to his functions in connection with the testing of gas for the purposes of this section;

and any liability under this subsection to pay to the Secretary of State sums on account of pensions (whether paid by him under subsection (5) above or otherwise) shall, if the Secretary of State so determines, be satisfied by way of contributions calculated, at such rate as may be determined by the Treasury, by reference to remuneration.

(7) The reference in subsection (6) above to expenses of the Secretary of State includes a reference to expenses incurred by any government department in connection with the Department of Energy, and to such sums as the Treasury may determine in respect of the use for the purposes of that Department of any premises belonging to the Crown.

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

(9) Any reference in this section to a person supplying gas through pipes does not include a reference to 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 above.

Meter testing and stamping

17

(1) No meter shall be used for the purpose of ascertaining the quantity of gas supplied through pipes to any person unless it is stamped either by, or on the authority of, a meter examiner appointed under this section or in such other manner as may be authorised by regulations under this section.

(2) Subject to subsections (3) to (5) below, it shall be the duty of a meter examiner who is employed in the civil service of the State, on being required to do so by any person and on payment of the requisite fee—

(a) to examine any meter used or intended to be used for ascertaining the quantity of gas supplied to any person; and

(b) to stamp, or authorise the stamping of, that meter.

(3) A meter examiner shall not stamp, or authorise the stamping of, any meter unless he is satisfied that it is of such pattern and construction and is marked in such manner as is approved by the Director and that the meter conforms with such standards as may be prescribed for the purposes of this subsection.

(4) A meter examiner may stamp or authorise another person to stamp a meter, notwithstanding that he has not himself examined it, if—

(a) the meter was manufactured or repaired by the person submitting it to the examiner;

(b) that person has obtained the consent of the Director to his submission; and

(5) A meter examiner may authorise another person to stamp a meter, notwithstanding that he has not himself examined it, if—

(a) the meter was manufactured or repaired by that person;

(b) that person has obtained the consent of the Director to his stamping of the meter; and

(6) The Director shall appoint competent and impartial persons as meter examiners for the purposes of this section.

(7) There shall be paid out of money provided by Parliament to meter examiners who are employed in the civil service of the State such remuneration and such allowances as may be determined by the Director with the approval of the Treasury, and such pensions as may be so determined may be paid out of money provided by Parliament to or in respect of such examiners.

(7A) The Secretary of State may pay, out of money provided by Parliament, to meter examiners who are not employed in the civil service of the State or to any employer of such examiners—

(a) sums in connection with the performance by such examiners of functions conferred by or under this section or gas meter regulations (within the meaning of section 92 of the Energy Act 2008), and

(b) sums in respect of any pension payable to or in respect of such examiners.

(8) All fees payable to meter examiners who are employed in the civil service of the State for the performance of functions conferred by or under this section shall be paid to the Director; and any sums received by him under this subsection shall be paid into the Consolidated Fund.

(9) Regulations under this section, which shall be made by the Director ... , may make provision—

(a) for re-examining meters already stamped, and for the cancellation of stamps in the case of meters which no longer conform with the prescribed standards and in such other circumstances as may be prescribed;

(b) for requiring meters to be periodically overhauled; and

(c) for the revocation of any approval given by the Director to any particular pattern or construction of meter, and for requiring existing meters of that pattern or construction to be replaced within such period as may be prescribed for the purposes of this subsection.

(10) The fees to be paid to meter examiners who are employed in the civil service of the State for the performance of functions conferred by or under this section, and the persons by whom they are to be paid, shall be such as the Director may, with the approval of the Treasury, from time to time determine; and a determination under this subsection may—

(a) make different provision for different areas or in relation to different cases or different circumstances; and

(b) make such supplementary, incidental or transitional provision as the Director considers necessary or expedient.

(11) If any person supplies gas through a meter which has not been stamped under this section, he shall be guilty of an offence and liable on summary conviction to a fine not exceeding level 3 on the standard scale.

(12) Where the commission by any person of an offence under subsection (11) above is due to the act or default of some other person, that other person shall be guilty of the offence; and a person may be charged with and convicted of the offence by virtue of this subsection whether or not proceedings are taken against the first-mentioned person.

(13) In any proceedings for an offence under subsection (11) above it shall be a defence for the person charged to prove that he took all reasonable steps and exercised all due diligence to avoid committing the offence.

(14) The preceding provisions of this section shall not have effect in relation to the supply of gas to a person under any agreement providing for the quantity of gas supplied to him to be ascertained by a meter designed for rates of flow which, if measured at a temperature of 15°C and a pressure of 1013.25 millibars, would exceed 1600 cubic metres an hour.

(15) Regulations under this section may provide that subsection (14) above shall have effect as if for the number of cubic metres an hour which is for the time being applicable for the purposes of that subsection there were substituted such lower number of cubic metres an hour as the Director considers appropriate.

Safety regulations

18

(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(2) The Secretary of State may by regulations make provision for empowering any officer authorised by the relevant authority—

(a) to enter any premises in which there is a service pipe connected with a gas main, for the purpose of inspecting any gas fitting on the premises, any flue or means of ventilation used in connection with any such gas fitting, or any part of the gas system on the premises, that is to say,any service pipe or other apparatus (not being a gas fitting) which is on the premises and is used for the conveyance orsupply of gas or is connected with a gas main;

(b) where he so enters any such premises, to examine or apply any test to any such object as is mentioned in paragraph (a) above and (where the object is a gas fitting) to verify what supply of air is available for it; and

(c) where in his opinion it is necessary to do so for the purpose of averting danger to life or property, and notwithstanding any contract previously existing, to disconnect and seal off any gas fitting or any part of the gas system on the premises, or disconnect the premises or, if the premises are not connected, to signify the refusal of the relevant authority to convey gas or, as the case may be, allow gas to be conveyed to the premises.

(3) Where any regulations under subsection (2) above confer any power in accordance with paragraph (c) of that subsection, the regulations shall also include provision—

(a) for securing that, where any such power is exercised, the consumer will be notified as to the nature of the defect or other circumstances in consequence of which it has been exercised;

(b) for enabling any consumer so notified to appeal to the Secretary of State on the grounds that the defect or other circumstances in question did not constitute a danger such as to justify the action taken in the exercise of the power, or did not exist or have ceased to exist; and

(c) for enabling the Secretary of State to give such directions as may in accordance with the regulations be determined by him to be appropriate in consequence of any such appeal.

(4) Regulations made under subsection (2) above may make provision for prohibiting any person, except with the consent of the relevant authority or in pursuance of any directions given by the Secretary of State as mentioned in subsection (3)(c) above, from—

(a) reconnecting any gas fitting or any part of any gas system which has been disconnected by or on behalf of the relevant authority in exercise of a power conferred by the regulations; or

(b) reconnecting any premises which have been disconnected by or on behalf of the relevant authority in the exercise of any such power; or

(c) causing gas from a gas main to be conveyed to any premises where in pursuance of the regulations the refusal of the relevant authority to convey gas or, as the case may be, allow gas to be conveyed to those premises has been signified and that refusal has not been withdrawn.

(5) Where in pursuance of any powers conferred by regulations made under subsection (2) above, entry is made on any premises by an officer authorised by the relevant authority—

(a) the officer shall ensure that the premises are left no less secure by reason of the entry; and

(b) the relevant authority shall make good, or pay compensation for, any damage caused by the officer, or by any person accompanying him in entering the premises, in taking any action therein authorised by the regulations, or in making the premises secure.

(6) Any officer exercising powers of entry conferred by regulations made under subsection (2) above may be accompanied by such persons as may be necessary or expedient for the purpose for which entry is made, or for the purposes of subsection (5) above.

(7) If any person intentionally obstructs any officer exercising powers of entry conferred by regulations made under subsection (2) above, he shall be guilty of an offence and liable on summary conviction to a fine not exceeding level 3 on the standard scale.

(8) The Rights of Entry (Gas and Electricity Boards) Act 1954 (entry under a justice’s warrant) shall apply in relation to any powers of entry conferred by regulations made under subsection (2) above as if any reference to a gas operator were a reference to the relevant authority.

(9) In this section “the relevant authority”—

(a) in relation to dangers arising from the conveyance of gas by a gas transporter, or from the use of gas conveyed by such a transporter, means that transporter; and

(b) in relation to dangers arising from the conveyance of gas by a person other than a gas transporter, or from the use of gas conveyed by such a person, means the Secretary of State.

(10) Where the relevant authority is a gas transporter, any reference in this section to any officer authorised by the authority includes a reference to any officer authorised by another such transporter with whom the authority has made arrangements for officers authorised by the other transporter to discharge any functions of the authority under this section.

(11) Except in cases of emergency, no officer shall be authorised by a gas transporter to exercise any powers of entry conferred by regulations under this section unless the transporter has taken all reasonable steps to ensure that he is a fit and proper person to exercise those powers.

Pipe-line systems, storage facilities and LNG import or export facilities: rights of use etc

Acquisition of rights to use pipe-lines

19

(1) In the case of a pipe-line system operated by a gas transporter, any person may, after giving the transporter not less than 28 days’ notice, apply to the Director for directions under this section which would secure to the applicant a right of a description specified in the application to have conveyed by the system gas which—

(a) is of a kind so specified; and

(b) is of, or of a kind similar to, the kind which the system is designed to convey.

(2) Where an application is made under subsection (1) above, it shall be the duty of the Director—

(a) to decide whether the application is to be adjourned (so as to enable negotiations or further negotiations to take place), considered further or rejected;

(b) to give notice of his decision to the applicant;

(c) in the case of a decision that the application is to be considered further, to give to the transporter, to the Health and Safety Executive and to any person who has a right to have gas conveyed by the pipe-line system, notice that the application is to be so considered and an opportunity of being heard about the matter.

(3) Where, after further considering an application under subsection (1) above, the Director is satisfied that the giving of directions under this section would not prejudice the efficient operation of the pipe-line system, or the conveyance by the system of—

(a) the quantities of gas which the gas transporter requires or may reasonably be expected to require to be conveyed by the system to enable the transporter to comply with the conditions of his licence and to perform his contractual obligations;

(b) the quantities of gas which any person who has a right to have gas conveyed by the system is entitled to require to be so conveyed in the exercise of that right,

the Director may give such directions to the transporter.

(4) Directions under this section may—

(a) specify the terms on which the Director considers the gas transporter should enter into an agreement with the applicant for all or any of the following purposes—

(i) for securing to the applicant the right to have conveyed by the pipe-line system, for the period specified in the directions and in the quantities so specified or determined by or under the directions, gas which is of a kind so specified;

(ii) for securing that the exercise of that right is not prevented or impeded;

(iii) for regulating the charges which may be made for the conveyance of gas by virtue of that right;

(iv) for securing to the applicant such ancillary or incidental rights as the Director considers necessary or expedient, which may include the right to have a pipe-line of his connected to the pipe-line system by the transporter;

(b) specify the sums or the method of determining the sums which the Director considers should be paid by way of consideration for any such right; and

(c) require the transporter, if the applicant pays or agrees to pay those sums within a period specified in that behalf in the directions, to enter into an agreement with him on the terms so specified.

(5) In giving any directions under this section, the Director shall apply the principle that the gas transporter should be entitled to receive by way of charges for the conveyance of gas by virtue of the right—

(a) the appropriate proportion of the costs incurred by the transporter in administering, maintaining and operating his pipe-line system; and

(b) a return equal to the appropriate proportion of the return received by the transporter (otherwise than by virtue of the right) on the capital value of the system (including so much of that return as is set aside to meet the need from time to time to renew the system).

(6) In subsection (5) above “the appropriate proportion” means such proportion as properly—

(a) reflects the use made of the gas transporter’s pipe-line system by virtue of the right as compared with the use made of that system for other purposes; and

(b) takes into account the sums paid by way of consideration for the right and any sums paid in respect of the pipe-line system (whether by the applicant or by any other person) in pursuance of directions under section 21(1) below.

(7) Any reference in this section to a right to have gas of any kind conveyed by a pipe-line system includes a reference to a right to introduce into, or take out of, such a system gas of that kind.

Construction of pipe-lines

20

Increase of capacity etc. of pipe-lines

21

(1) If in the case of a pipe-line system operated by a gas transporter it appears to the Director, on the application of a person other than the transporter, that the system can and should be modified—

(a) by installing in it a junction through which another pipe-line may be connected to the system; or

(b) by modifying apparatus and works associated with a high pressure pipe-line so as to increase the capacity of the pipe-line,

then, subject to subsection (3) below, the Director may, after giving to the transporter an opportunity of being heard about the matter and giving to the Health and Safety Executive notice of his proposed directions, give directions to the transporter in accordance with subsection (2) below in consequence of the application.

(2) Directions under subsection (1) above may—

(a) specify the modifications which the Director considers should be made in consequence of the application;

(b) specify the sums or the method of determining the sums which the Director considers should be paid to the gas transporter by the applicant by way of consideration for the modifications;

(c) specify the arrangements which the Director considers should be made by the applicant, within a period specified in that behalf in the directions, for the purpose of securing that those sums will be paid to the transporter if he carries out the modifications;

(d) require the transporter, if the applicant makes those arrangements within the period aforesaid, to carry out the modifications within a period specified in that behalf in the directions.

(3) Where the Director proposes to give directions under subsection (1) above, it shall be his duty before doing so to give to the applicant—

(a) particulars of the modifications which he proposes to specify in the directions; and

(b) an opportunity of making an application under subsection (1) of section 19 above in respect of the pipe-line system;

and that section shall have effect in relation to such an application made by virtue of this subsection as if for references to a pipe-line system there were substituted references to the pipe-line system as it would be with those modifications and the reference in subsection (2) to the Director deciding whether the application is to be adjourned were omitted.

(3A) In giving any directions under this section, the Director shall apply the principle that, in so far as the following, namely—

(a) the cost of carrying out the modifications; and

(b) a reasonable element of profit,

will not be recoverable by the gas transporter from elsewhere, the transporter should be entitled to receive them by way of consideration for carrying out the modifications.

(4) References in this section to modifications include, in the case of modifications to any apparatus and works, references to changes in, substitutions for and additions to the apparatus and works; and the reference in subsection (1) above to apparatus and works associated with a pipe-line shall be construed in accordance with section 65(2) of the Pipe-lines Act 1962.

(5) In this section—

“high pressure pipe-line” means any pipe-line which has a design operating pressure exceeding 7 bar gauge;

“pipe-line” has the same meaning as in the Pipe-lines Act 1962.

Effect of directions

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(1) The obligation to comply with any directions under section section 19... or 21(1) above (in this section referred to as “relevant directions”) is a duty owed to any person who may be affected by a contravention of them.

(2) Where a duty is owed by virtue of subsection (1) above to any person any breach of the duty which causes that person to sustain loss or damage shall be actionable at the suit or instance of that person.

(3) In any proceedings brought against any person in pursuance of subsection (2) above, it shall be a defence for him to prove that he took all reasonable steps and exercised all due diligence to avoid contravening the relevant directions ....

(4) Without prejudice to any right which any person may have by virtue of subsection (2) above to bring civil proceedings in respect of any contravention or apprehended contravention of any relevant directions, compliance with any such directions shall be enforceable by civil proceedings by the Director for an injunction or interdict or for any other appropriate relief.

(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Modification of licences

Modification by agreement

23

(1) The Authority may make modifications of—

(a) the conditions of a particular licence;

(b) the standard conditions of licences of any type under section 7, 7ZA, 7A(1) or (2) or 7AC.

(2) Before making any modifications under this section, the Authority must give notice—

(a) stating that it proposes to make modifications;

(b) setting out the proposed modifications and their effect;

(d) specifying the time within which representations with respect to the proposed modifications may be made.

(3) The time specified by virtue of subsection (2)(d) may not be less than 28 days from the date of the publication of the notice.

(4) A notice under subsection (2) must be given—

(a) by publishing the notice in such manner as the Authority considers appropriate for the purpose of bringing the notice to the attention of persons likely to be affected by the making of the modifications, and

(b) by sending a copy of the notice to—

(i) each relevant licence holder,

(ii) the Secretary of State,

(iii) the Health and Safety Executive, ...

(iv) Citizens Advice, and

(v) Consumer Scotland.

(4A) The Authority must consider any representations which are duly made.

(5) If, within the time specified by virtue of subsection (2)(d) , the Secretary of State directs the Director not to make any modification, the Director shall comply with the direction.

(6) Subsections (7) to (9) apply where, having complied with subsections (2) to (4A), the Authority decides to proceed with the making of modifications of the conditions of any licence under this section.

(7) The Authority must—

(a) publish the decision and the modifications in such manner as it considers appropriate for the purpose of bringing them to the attention of persons likely to be affected by the making of the modifications,

(b) state the effect of the modifications,

(d) state the reason for any differences between the modifications and those set out in the notice by virtue of subsection (2)(b).

(8) Each modification has effect from the date specified by the Authority in relation to that modification (subject to the giving of a direction under paragraph 2 of Schedule 4A).

(9) The date specified by virtue of subsection (8) may not be less than 56 days from the publication of the decision to proceed with the making of modifications under this section.

(10) In this section “relevant licence holder”—

(a) in relation to the modification of standard conditions of licences of any type, means the holder of a licence of that type—

(i) which is to be modified by the inclusion of any new standard condition, or

(ii) which includes any standard conditions to which the modifications relate which are in effect at the time specified by virtue of subsection (2)(d); or

(b) in relation to the modification of a condition of a particular licence (other than a standard condition), means the holder of that particular licence.

Modification references to Monopolies Commission

24

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Report on modification references

25

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Modification following report

26

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Modification by order under other enactments

27

(1) Where the CMA or (as the case may be) the Secretary of State (in this section “the relevant authority”) makes a relevant order, the order may also provide for the modification of—

(a) the conditions of a particular licence; or

(b) the standard conditions of licences under section 7 above, licences under section 7ZA above, licences under subsection (1) of section 7A above or licences under subsection (2) of that section or licences under section 7AC above,

to such extent as may appear to the relevant authority to be requisite or expedient for the purpose of giving effect to, or taking account of, any provision made by the order.

(1ZA) In subsection (1) above “relevant order” means—

(a) an order under section 75, 83 or 84 of, or paragraph 5, 10 or 11 of Schedule 7 to, the Enterprise Act 2002 where—

(i) one or more than one of the enterprises which have, or may have, ceased to be distinct enterprises was engaged in the carrying on of activities authorised or regulated by a licence; or

(ii) one or more than one of the enterprises which will or may cease to be distinct enterprises is engaged in the carrying on of activities authorised or regulated by a licence; or

(b) an order under section 160 or 161 of that Act where the feature, or combination of features, of the market or markets in the United Kingdom for goods or services which prevents, restricts or distorts competition relates to—

(i) activities authorised or regulated by a licence; or

(ii) the storage of gas on terms which have been determined by the holder of a licence under section 7 above, or could have been determined by the holder if he had thought fit or had been required to determine them by or under a condition of the licence.

(1A) The modification under subsection (1)(a) of part of a standard condition of a particular licence in consequence of a reference under section 24(1) shall not prevent any other part of the condition from continuing to be regarded as a standard condition for the purposes of this Part.

(2) Where at any time the relevant authority modifies under subsection (1)(b) above the standard conditions of licences under section 7 above, licences under section 7ZA above, licences under subsection (1) of section 7A above or licences under subsection (2) of that section, the relevant authority —

(a) shall also make (as nearly as may be) the same modifications of those conditions for the purposes of their incorporation in licences under that section or, as the case may be, that subsection granted after that time; and

(b) may, after consultation with the Director, make such incidental or consequential modifications as the relevant authority considers necessary or expedient of any conditions of licences under that provision granted before that time.

(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(5) Where at any time the relevant authority modifies standard conditions under subsection (2)(a) above for the purposes of their incorporation in licences granted after that time, the relevant authority shall publish those modifications in such manner as the relevant authority considers appropriate.

(6) Expressions used in subsection (1ZA) above and in Part 3 or (as the case may be) Part 4 of the Enterprise Act 2002 have the same meanings in that subsection as in that Part.

Enforcement of obligations of regulated persons

Orders for securing compliance with certain provisions

28

(1) Subject to subsections (2), (4A) to (5A) and section 29 below, where the Director is satisfied that a regulated person is contravening, or is likely to contravene, any relevant condition or requirement, the Director shall by a final order make such provision as is requisite for the purpose of securing compliance with that condition or requirement.

(2) Subject to subsections (4A) to (5A) below, where it appears to the Director—

(a) that a regulated person is contravening, or is likely to contravene, any relevant condition or requirement; and

(b) that it is requisite that a provisional order be made,

the Director shall (instead of taking steps towards the making of a final order) by a provisional order make such provision as appears to him requisite for the purpose of securing compliance with that condition or requirement.

(3) In determining for the purposes of subsection (2)(b) above whether it is requisite that a provisional order be made, the Director shall have regard, in particular—

(a) to the extent to which any person is likely to sustain loss or damage in consequence anything which, in contravention of the relevant condition or requirement, is likely to be done, or omitted to be done, before a final order may be made; and

(b) to the fact that the effect of the provisions of this section and section 30 below is to exclude the availability of any remedy (apart from under those provisions or for negligence) in respect of any contravention of a relevant condition or requirement.

(4) Subject to subsections (4A) to (5A) and section 29 below, the Director shall confirm a provisional order, with or without modifications, if—

(a) he is satisfied that the regulated person is contravening, or is likely to contravene, any relevant condition or requirement; and

(b) the provision made by the order (with any modifications) is requisite for the purpose of securing compliance with that condition or requirement.

(4A) Before making a final order or making or confirming a provisional order, the Authority shall consider whether it would be more appropriate to proceed under the Competition Act 1998.

(4B) The Authority shall not make a final order or make or confirm a provisional order if it considers that it would be more appropriate to proceed under the Competition Act 1998.

(5) The Director shall not make a final order or make or confirm a provisional order if he is satisfied—

(a) that the duties imposed on him by section 4AA, 4AB or 4A preclude the making or, as the case may be, the confirmation of the order

(aa) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(5A) The Authority is not required to make a final order or make or confirm a provisional order if it is satisfied—

(a) that the regulated person has agreed to take and is taking all such steps as it appears to the Authority for the time being to be appropriate for the regulated person to take for the purpose of securing or facilitating compliance with the condition or requirement in question; or

(b) that the contraventions were or the apprehended contraventions are of a trivial nature.

(6) Where the Director decides that it would be more appropriate to proceed under the Competition Act 1998 or is satisfied as mentioned in subsections (5) or (5A) above, he shall—

(a) give notice that he has so decided or is so satisfied to the regulated person ; and

(b) publish a copy of the notice in such manner as the Director considers appropriate for the purpose of bringing the matters to which the notice relates to the attention of persons likely to be affected by them.

(7) A final or provisional order—

(a) shall require the regulated person (according to the circumstances of the case) to do, or not to do, such things as are specified in the order or are of a description so specified;

(b) shall take effect at such time, being the earliest practicable time, as is determined by or under the order; and

(7A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(8) In this section and sections 29 to 30O below—

“final order” means an order under this section other than a provisional order;

“provisional order” means an order under this section which, if not previously confirmed under subsection (4) above, will cease to have effect at the end of such period (not exceeding three months) as is determined by or under the order;

“regulated person” means a person who is one or more of the following—a licence holder;a distribution exemption holder;a supply exemption holder;the owner of a storage facility;the owner of an LNG import or export facility;a gas undertaking which is a relevant producer or supplier; a responsible body for a central system;

“relevant condition”, in relation to a regulated person , means any condition of any licence held by that person ;

“relevant requirement”, in relation to a regulated person , means any requirement imposed on that person under a provision specified in Schedule 4B as a relevant provision in respect of that person

(8A) In paragraph (g) of the definition of “regulated person” in subsection (8), the reference to a responsible body for a central system is a reference to a person for the time being specified in a notice under section 184(1) of the Energy Act 2023 in relation to a designated central system (within the meaning of Part 6 of that Act).

(9) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Procedural requirements

29

(1) Before making a final order or confirming a provisional order, the Director shall give notice—

(a) stating that he proposes to make or confirm the order and setting out its effect;

(b) stating the relevant condition or requirement, the acts or omissions which, in his opinion, constitute or would constitute contraventions of it and the other facts which, in his opinion, justify the making or confirmation of the order; and

(c) specifying the time (not being less than 21 days from the date of publication of the notice) within which representations or objections to the proposed order or confirmation of the order may be made,

and shall consider any representations or objections which are duly made and not withdrawn.

(2) A notice under subsection (1) above shall be given—

(a) by publishing the notice in such manner as the Director considers appropriate for the purpose of bringing the matters to which the notice relates to the attention of persons likely to be affected by them; and

(b) by sending a copy of the notice, and a copy of the proposed order or of the order proposed to be confirmed, to the regulated person .

(3) The Director shall not make a final order, or confirm a provisional order, with modifications except with the consent of the regulated person or after complying with the requirements of subsection (4) below.

(4) The said requirements are that the Director shall—

(a) give to the regulated person such notice as appears to him requisite of his proposal to make or confirm the order with modifications;

(b) specify the time (not being less than 21 days from the date of the service of the notice) within which representations or objections to the proposed modifications may be made; and

(5) Before revoking a final order or a provisional order which has been confirmed, the Director shall give notice—

(a) stating that he proposes to revoke the order and setting out its effect; and

(b) specifying the time (not being less than 28 days) from the date of publication of the notice within which representations or objections to the proposed revocation may be made,

and shall consider any representations or objections which are duly made and not withdrawn.

(6) A notice under subsection (5) above shall be given—

(a) by publishing the notice in such manner as the Director considers appropriate for the purpose of bringing the matters to which the notice relates to the attention of persons likely to be affected by them; and

(b) by sending a copy of the notice to the regulated person .

(7) As soon as practicable after a final order is made or a provisional order is made or confirmed, the Director shall—

(a) serve a copy of the order on the regulated person ; and

(b) publish such a copy in such manner as he considers appropriate for the purpose of bringing the order to the attention of persons likely to be affected by it.

Validity and effect of orders

30

(1) If the regulated person is aggrieved by a final or provisional order and desires to question its validity on the ground that the making or confirmation of it was not within the powers of section 28 above or that any of the requirements of section 29 above have not been complied with in relation to it, he may within 42 days from the date of service on him of a copy of the order make an application to the court under this section.

(2) On any such application the court, if satisfied that the making or confirmation of the order was not within those powers or that the interests of the l regulated person have been substantially prejudiced by a failure to comply with those requirements—

(a) may quash the order or any provision of the order; . . .

(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3) Except as provided by this section, the validity of a final or provisional order shall not be questioned by any legal proceedings whatever.

(4) No criminal proceedings shall, by virtue of the making of a final order or the making or confirmation of a provisional order, lie against any person on the ground that he has committed, or aided, abetted, counselled or procured the commission of, or conspired or attempted to commit, or incited others to commit, any contravention of the order.

(5) The obligation to comply with a final or provisional order is a duty owed to any person who may be affected by a contravention of it.

(6) Where a duty is owed by virtue of subsection (5) above to any person any breach of the duty which causes that person to sustain loss or damage shall be actionable at the suit or instance of that person.

(7) In any proceedings brought against any person in pursuance of subsection (6) above, it shall be a defence for him to prove that he took all reasonable steps and exercised all due diligence to avoid contravening the order.

(8) Without prejudice to any right which any person may have by virtue of subsection (6) above to bring civil proceedings in respect of any contravention or apprehended contravention of a final or provisional order, compliance with any such order shall be enforceable by civil proceedings by the Director for an injunction or interdict or for any other appropriate relief.

(9) In this section “the court” means—

(a) in relation to England and Wales, the High Court;

(b) in relation to Scotland, the Court of Session.

Investigation of complaints etc.

Duty of Director to investigate certain matters

31

Duty of Council to investigate certain matters

32

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Power of Council to investigate other matters

33

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Other functions of Director

General functions

34

(1) It shall be the duty of the Director, so far as it appears to him practicable from time to time, to keep under review the carrying on both within and outside Great Britain of

(a) such activities as are mentioned in section 5(1) above or subsection (2A) below; and

(b) activities ancillary to such activities (including in particular the storage of gas, the provision and reading of meters and the provision of pre-payment facilities).

(2) It shall also be the duty of the Director, so far as it appears to him practicable from time to time, to collect information with respect to

(a) the carrying on of such activities as are mentioned in subsection (1) above; and

(b) the persons by whom such activities are carried on,

with a view to his becoming aware of, and ascertaining the circumstances relating to, matters with respect to which his functions are exercisable.

(2A) The activities referred to in subsection (1)(a) are the matters specified in the following provisions of the Gas Directive as matters to be monitored—

(a) Article 26(3);

(b) Article 41(1)(g) to (k), (m), (n) , (r) and (t);

(d) ... and

(e) Article 41(9).

(2B) For the purposes of subsection (2A)(c), the reference to Article 41(3)(a) is to be read as if the reference in that provision to Article 41 were a reference to Article 41 as implemented in Great Britain immediately before IP completion day.

(3) The Secretary of State may give general directions indicating—

(a) considerations to which the Director should have particular regard in determining the priority in which matters are to be brought under review in the performance of his duty under subsection (1) or (2) above; and

(b) considerations to which, in cases where it appears to the Director that any of his functions are exercisable, he should have particular regard in determining whether to exercise those functions.

(4) It shall be the duty of the Director, where either he considers it expedient or he is requested by the Secretary of State or the CMA to do so, to give information, advice and assistance to the Secretary of State or the CMA with respect to any matter in respect of which any function of the Director or the Secretary of State. is exercisable.

(5) The Authority shall have power to make agreements with the Health and Safety Executive for the Authority to perform on behalf of that Executive (with or without payment) any of the functions of that Executive.

Publication of information and advice

35

(1) If it appears to the Authority that the publication of any advice and information would promote the interests of consumers in relation to gas conveyed through pipes, the Authority may publish that advice or information in such manner as it thinks fit.

(2) In publishing advice or information under this section the Authority shall have regard to the need for excluding, so far as that is practicable, any matter which relates to the affairs of a particular individual or body of persons (corporate or unincorporate), where publication of that matter would or might, in the opinion of the Authority, seriously and prejudicially affect the interests of that individual or body.

(3) Before deciding to publish under this section any advice or information relating to a particular individual or body of persons the Authority shall consult that individual or body.

(3A) The CMA shall consult the Authority before publishing under section 6 of the Enterprise Act 2002 any information or advice which may be published by the Authority under this section.

(4) In this section “consumers” includes both existing and future consumers.

Keeping of register

36

(1) The Director shall keep a register of notifications and directions under paragraph 5 of Schedule 2A to this Act, exemptions granted under section 6A above to particular persons, licences under section 7, 7ZA , 7A , 7AA, 7AB or 7AC above , final and provisional orders and penalties imposed under section 30A(1) ... in such form as he may determine.

(2) Subject to subsection (2A) and to any direction given under subsection (3) below, the Director shall cause to be entered in the register the provisions of—

(a) every notification or direction under paragraph 5 of Schedule 2A to this Act;

(b) every exemption granted under section 6A above to a particular person and every revocation of such exemption;

(c) every revocation ... of an exemption granted under that section to persons of a particular class and every direction under subsection (7) of that section;

(d) every licence under section 7, 7ZA , 7A , 7AA, 7AB or 7AC above and every modification or revocation of, and every direction or consent given or determination made under, such a licence; and

(e) every final or provisional order, every revocation of such an order and every notice under section 28(6) above; and.

(f) every notice under section 30A(5).

(2A) The Authority may enter the provisions of anything in the register in a manner that excludes, so far as practicable, so much of the details of those provisions as it considers it appropriate to exclude for the purpose of maintaining the confidentiality of—

(a) matters relating to the affairs of an individual the publication of which would or might, in its opinion, seriously and prejudicially affect the interests of that individual; and

(b) matters relating specifically to the affairs of a particular body of persons the publication of which would or might, in the Authority’s opinion, seriously and prejudicially affect the interests of that body.

(3) If it appears to the Secretary of State that the entry of any provision in the register would be against the public interest or the commercial interests of any person, he may direct the Director not to enter that provision in the register.

(4) The contents of the register must be shown on the Authority's website.

(5) Any person may, on payment of such fee as may be prescribed by an order made by the Secretary of State , require the Director to supply to him a copy of or extract from any part of the register, certified by the Director to be a true copy or extract.

(6) Any sums received by the Director under this section shall be paid into the Consolidated Fund.

(7) In this section “final order” and “provisional order” have the same meanings as in section 28 above.

Fixing of maximum charges for reselling gas

37

(1) The Director may from time to time direct that the maximum prices at which gas supplied by authorised suppliers may be resold—

(a) shall be such as may be specified in the direction; or

(b) shall be calculated by such method and by reference to such matters as may be so specified,

and shall publish directions under this section in such manner as in his opinion will secure adequate publicity for them.

(2) A direction under this section may—

(a) require any person who resells gas supplied by a an authorised supplier to furnish the purchaser with such information as may be specified or described in the direction; and

(b) provide that, in the event of his failing to do so, the maximum price applicable to the resale shall be such as may be specified in the direction, or shall be reduced by such amount or such percentage as may be so specified.

(3) Different directions may be given under this section as respects different classes of cases, which may be defined by reference to areas or any other relevant circumstances.

(4) If any person resells any gas supplied by a an authorised supplier at a price exceeding the maximum price determined by or under a direction under this section and applicable to the resale—

(a) the amount of the excess; and

(b) if the direction so provides, interest on that amount at a rate specified or described in the direction,

shall be recoverable by the purchaser.

(5) Nothing in this section shall apply in relation to the resale of gas for use in a motor vehicle which is constructed or adapted to use gas as fuel for its propulsion.

Power to require information etc.

38

(1) Where it appears to the Authoritythat a regulated person may be contravening, or may have contravened, any relevant condition or requirement or may be failing, or may have failed, to achieve any standard of performance prescribed under section 33A or 33AA,, the Authoritymay, for any purpose connected with the exercise of its functions under section 28 or 30A to 30O in relation to that matter, by notice in writing—

(a) require any person to produce, at a time and place specified in the notice, to the Authorityor to any person appointed by it for the purpose, any documents which are specified or described in the notice and are in that person’s custody or under his control; or

(b) require any person carrying on any business to furnish to the Authoritysuch information as may be specified or described in the notice, and specify the time, the manner and the form in which any such information is to be furnished;

. . .

(1A) Where a licence has been or is to be revoked or suspended, or has expired or is about to expire by effluxion of time, and it appears to the Director, having regard to the duties imposed by section 4AA, 4AB or 4A, to be requisite or expedient to do so for any purpose connected with the revocation, suspension or expiry, the Director may, with the consent of the Secretary of State, by notice signed by him—

(a) require the regulated person to produce, at a time and place specified in the notice, to the Director, or to any person so specified, any records which are specified or described in the notice and are in the licence holder’s custody or under his control; or

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