Office of Public Sector Information
Section 10(1).
1 After section 8 of the 1986 Act there shall be inserted the following section—
(1) A licence shall be capable of being assigned either generally or—
(a) in the case of a licence under section 7 above, so far as relating to the whole or any part of an authorised area or any specified pipe-line system;
(b) in the case of a licence under section 7A above, so far as relating to any specified premises,
but only if it includes a condition authorising such assignment.
In this subsection “specified” means specified in the licence, or of a description, or situated in an area, so specified.
(2) A licence shall not be capable of being assigned except with the consent of the Director.
(3) In deciding whether to give his consent under subsection (2) above, the Director shall apply the same criteria as he would apply if—
(a) in the case of a general assignment, he were deciding whether to grant a corresponding licence to the assignee;
(b) in the case of any other assignment, he were deciding whether—
(i) to grant to the assignee a licence corresponding to so much of the licence as is proposed to be assigned; and
(ii) to grant to the assignor a licence corresponding to so much of the licence as is proposed to be retained.
(4) Subject to subsection (5) below, a consent under subsection (2) above may be given subject to compliance with—
(a) such modification or other conditions as the Director considers necessary or expedient for the purpose of protecting the interests of consumers; and
(b) such incidental or consequential modification conditions as he considers necessary or expedient,
and in the case of an assignment other than a general assignment, modification conditions may make as respects so much of the licence as is proposed to be retained by the assignor provision different from that made as respects so much of the licence as is proposed to be assigned.
(5) The Director shall—
(a) give the Health and Safety Executive not less than 28 days' notice of any proposal of his to give a consent under subsection (2) above; and
(b) give that Executive and the Secretary of State not less than 28 days' notice of any proposal of his to impose a modification condition;
and if, before the expiry of the time specified in a notice given to the Secretary of State under paragraph (b) above, the Secretary of State directs the Director not to impose the condition, the Director shall comply with the direction.
(6) A licence may include conditions which must be complied with before the licence can be assigned.
(7) An assignment, or purported assignment, of a licence shall be void—
(a) if the licence is not capable of assignment;
(b) if the assignment, or purported assignment, is in breach of a condition of the licence; or
(c) if there has, before the assignment or purported assignment, been a contravention of a condition subject to compliance with which the consent required by subsection (2) above is given.
(8) A licence shall not be capable of being assigned under or by virtue of any other provision of this Act.
(9) In this section—
“assignment” includes any form of transfer and cognate expressions shall be construed accordingly;
“modification condition” means a condition requiring or otherwise providing for the making of modifications to the conditions of a licence.
(10) Any reference in this section to “assignment” shall be construed in Scotland as a reference to assignation.”
2 (1) In subsection (1) of section 8A of the 1986 Act (modification or removal of the 25,000 therm limits), for the words “section 4(2)(d) or 8(5)(b) above or section 10(5) or 14(3) or (4)(b) below” there shall be substituted the words “section 10(8) or (12) below, paragraph 4 of Schedule 2A to this Act or paragraph 4, 8 or 16 of Schedule 2B to this Act”.
(2) Subsections (3) and (4) of that section shall cease to have effect.
3 For section 9 of the 1986 Act there shall be substituted the following section—
(1) It shall be the duty of a public 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.
(2) It shall also be the duty of a public gas transporter to avoid any undue preference or undue discrimination—
(a) in the connection of premises 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.
(3) The following provisions shall have effect, namely—
(a) Schedule 3 to this Act (which provides for the acquisition of land by public gas transporters); and
(b) Schedule 4 to this Act (which relates to the breaking up of streets and bridges by such transporters).”
4 For section 10 of the 1986 Act there shall be substituted the following section—
(1) Subsection (2) below applies to any premises in an authorised area of a public 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 public 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 public 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 public gas transporter shall maintain the connection until such time as it is no longer required by the owner or occupier of the premises.
(4) Where any person requires a connection in pursuance of subsection (2) above, he shall serve on the public 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 public 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.
(6) Where at any time a public 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 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 or rights of the transporter.
(7) The Director may, with the consent of the Secretary of State, make provision by regulations for entitling a public 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 public 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 public 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 public 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 public gas transporter, means any distribution main in his authorised area 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 public 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 public 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.”
5 For section 11 of the 1986 Act there shall be substituted the following section—
(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 public 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 public 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.”
6 For section 12 of the 1986 Act there shall be substituted the following section—
(1) Except in prescribed cases, the number of therms or kilowatt hours conveyed by a public gas transporter to premises, or to pipe-line systems operated by other public 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 public 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; or
if 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 public gas transporter, means a calorific value declared by the transporter in accordance with regulations under this section, or so declared by another public 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 public 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 public gas transporters for the purpose of making such determinations;
(e) for requiring public 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 public 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;
(c) for imposing requirements on public gas transporters as to the correlation between—
(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 public 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 public 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 public 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.”
7 For section 13 of the 1986 Act there shall be substituted the following section—
(1) The Director shall appoint competent and impartial persons—
(a) to carry out tests of apparatus and equipment provided and maintained by public 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 public 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 public gas transporters for the purpose of carrying out such tests;
(c) for requiring samples of gas to be taken by public 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 public 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 public 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 public 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.”
8 Section 14 of the 1986 Act (fixing of tariffs) shall cease to have effect.
9 Section 14A of the 1986 Act (which is superseded by paragraph 26 below) shall cease to have effect.
10 (1) In subsection (2) of section 15A of the 1986 Act (billing disputes), for the words “public gas supplier and a tariff customer” there shall be substituted the words “gas supplier and a domestic customer”.
(2) In subsection (8) of that section—
(a) for the words “public gas supplier” there shall be substituted the words “gas supplier”; and
(b) for the words “tariff customer” there shall be substituted the words “domestic customer”.
(3) After subsection (9) of that section there shall be inserted the following subsection—
“(10) In this Part “domestic customer” means a person who is supplied by a gas supplier with gas conveyed to particular premises at a rate which is reasonably expected not to exceed 2,500 therms a year.”
11 Section 15B of the 1986 Act (which is superseded by paragraph 36 below) shall cease to have effect.
12 For section 16 of the 1986 Act there shall be substituted the following section—
(1) The Director—
(a) shall, after consultation with public gas transporters and with the consent of the Secretary of State, by regulations prescribe standards of pressure and purity to be complied with by public gas transporters in conveying gas to premises; and
(b) may, after such consultation and with such consent, so prescribe other standards with respect to the properties, condition and composition of gas so conveyed.
(2) The Director—
(a) shall, after consultation with such persons and organisations as he considers appropriate and with the consent of the Secretary of State, by regulations prescribe standards of pressure and purity to be complied with by persons in supplying to premises gas which is conveyed through pipes to the premises otherwise than by a public gas transporter or in accordance with paragraph 1 of Schedule 2A to this Act; and
(b) may, after such consultation and with such consent, so prescribe other standards with respect to the properties, condition and composition of such gas so supplied.
(3) The Director shall appoint competent and impartial persons to carry out tests of—
(a) gas which is conveyed by a public gas transporter; and
(b) gas which is supplied by any person (a “relevant supplier”) to premises and is conveyed through pipes to the premises otherwise than by such a transporter or in accordance with paragraph 1 of Schedule 2A to this Act,
for the purpose of ascertaining whether it conforms with the standards prescribed under this section.
(4) Regulations under this section may make provision—
(a) for requiring such tests to be carried out at such places as the Director may direct;
(b) for requiring such premises, apparatus and equipment as the Director may direct to be provided and maintained by public gas transporters and relevant suppliers for the purpose of carrying out such tests;
(c) for persons representing the public gas transporter or relevant supplier concerned to be present during the carrying out of 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 public gas transporters and relevant 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 persons appointed under subsection (3) 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 those persons.
(6) Every person who is a public gas transporter or relevant supplier 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 (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 Director sums on account of pensions (whether paid by him under subsection (5) 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.
(7) Any sums received by the Director under this section shall be paid into the Consolidated Fund.”
13 For section 17 of the 1986 Act there shall be substituted the following section—
(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 a member of the Director’s staff, 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
(c) any conditions subject to which the consent was given have been satisfied.
Gas Act 1995