Office of Public Sector Information
C1Pt. I: definition of "public gas supplier" applied (E.W.) (1.12.1991) by Water Resources Act 1991 (c. 57, SIF 130), ss. 208(3)(b), 225(2) (with ss. 16(6), 179, 222(3), Sch. 22 para. 1, Sch. 23 para. 6)
Pt. I: definition of "public gas supplier" applied (E.W.) (1.12.1991) by Water Resources Act 1991 (c. 57, SIF 130), ss. 178, 225(2), Sch. 22 para. 1(4)(e) (with ss. 16(6), 179, 222(3), Sch. 22 para. 1, Sch. 23 para. 6)
Pt. I applied (1.3.1996) by 1995 c. 45, s. 6(7); S.I. 1996/218, art. 2
Pt. I applied (1.3.1996) by 1995 c. 45, s. 16(1), Sch. 4 para. 1; S.I. 1996/218, art. 2
F1S. 1 repealed (7.11.2000) by 2000 c. 27, s. 108, Sch. 8; S.I. 2000/2974, art. 2, Sch. (subject to transitional provisions in arts. 3-12)
F1S. 2 repealed (7.11.2000) by 2000 c. 27, s. 108, Sch. 8; S.I. 2000/2974, art. 2, Sch. (subject to transitional provisions in arts. 3-12)
F1S. 3 repealed (1.10.2001) by 2000 c. 27, s. 108, Sch. 8; S.I. 2001/3266, arts. 1(2), 2, Sch. (subject to transitional provisions in arts. 3-20)
(1)The principal objective of the Secretary of State and the Gas and Electricity Markets Authority (in this Act referred to as “the Authority”) in carrying out their respective functions under this Part is to protect the interests of consumers in relation to gas conveyed through pipes, wherever appropriate by promoting effective competition between persons engaged in, or in commercial activities connected with, the shipping, transportation or supply of gas so conveyed.
(2)The Secretary of State and the Authority shall carry out those functions in the manner which he or it considers is best calculated to further the principal objective, having regard to—
(a)the need to secure that, so far as it is economical to meet them, all reasonable demands in Great Britain for gas conveyed through pipes are met; and
(b)the need to secure that licence holders are able to finance the activities which are the subject of obligations imposed by or under this Part or the Utilities Act 2000.
(3)In performing that duty, the Secretary of State or the Authority shall have regard to the interests of—
(a)individuals who are disabled or chronically sick;
(b)individuals of pensionable age;
(c)individuals with low incomes; and
(d)individuals residing in rural areas;
but that is not to be taken as implying that regard may not be had to the interests of other descriptions of consumer.
(4)The Secretary of State and the Authority may, in carrying out any function under this Part, have regard to—
(a)the interests of consumers in relation to electricity conveyed by distribution systems (within the meaning of the M1Electricity Act 1989); and
(b)any interests of consumers in relation to—
(i)telecommunication services and telecommunication apparatus (within the meaning of the M2Telecommunications Act 1984); or
(ii)water services or sewerage services (within the meaning of the M3Water Industry Act 1991),
which are affected by the carrying out of that function.
(5)Subject to subsection (2), the Secretary of State and the Authority shall carry out their respective functions under this Part in the manner which he or it considers is best calculated—
(a)to promote efficiency and economy on the part of persons authorised by licences or exemptions to carry on any activity, and the efficient use of gas conveyed through pipes;
(b)to protect the public from dangers arising from the conveyance of gas through pipes or from the use of gas conveyed through pipes; and
(c)to secure a diverse and viable long-term energy supply,
and shall have regard, in carrying out those functions, to the effect on the environment of activities connected with the conveyance of gas through pipes.
(6)In this section “consumers” includes both existing and future consumers.
(7)In this section and sections 4AB and 4A, references to functions of the Secretary of State or the Authority under this Part include a reference to functions under the Utilities Act 2000 which relate to gas conveyed through pipes.
(8)In this Part, unless the context otherwise requires,—
“exemption” means an exemption granted under section 6A;
“licence” means a licence under section 7 or 7A and “licence holder” shall be construed accordingly.]
F1S. 4AA substituted (20.12.2000) for s. 4 by 2000 c. 27, s. 9; S.I. 2000/3343, art. 2, Sch. (subject to transitional provisions in arts. 3-15)
C1S. 4AA(2)(b) amended (temp. from 19.12.2000) by S.I. 2000/3343, art. 5 (subject to transitional provisions in arts. 3-15)
M11989 c. 29.
M21984 c. 12.
M31991 c. 56.
(1)The Secretary of State shall from time to time issue guidance about the making by the Authority of a contribution towards the attainment of any social or environmental policies set out or referred to in the guidance.
(2)The Authority shall, in carrying out its functions under this Part, have regard to any guidance issued under this section.
(3)Before issuing guidance under this section the Secretary of State shall consult—
(a)the Authority;
(b)the Gas and Electricity Consumer Council (in this Act referred to as “the Council”);
(c)licence holders; and
(d)such other persons as the Secretary of State considers it appropriate to consult in relation to the guidance.
(4)A draft of any guidance proposed to be issued under this section shall be laid before each House of Parliament.
(5)Guidance shall not be issued under this section until after the period of forty days beginning with—
(a)the day on which the draft is laid before each House of Parliament; or
(b)if the draft is laid before the House of Lords on one day and the House of Commons on another, the later of those two days.
(6)If, before the end of that period, either House resolves that the guidance should not be issued, the Secretary of State must not issue it.
(7)In reckoning any period of forty days for the purposes of subsection (5) or (6), no account shall be taken of any time during which—
(a)Parliament is dissolved or prorogued; or
(b)both Houses are adjourned for more than four days.
(8)The Secretary of State shall arrange for any guidance issued under this section to be published in such manner as he considers appropriate.]
F1S. 4AB inserted (20.12.2000) by 2000 c. 27, s. 10; S.I. 2000/3343, art. 2, Sch. (subject to transitional provisions in arts. 3-15)
(1)The Secretary of State and the Authority shall consult the Health and Safety Commission about all gas safety issues which may be relevant to the carrying out of any of their respective functions under this Part.
(2)The Secretary of State and the Authority shall, in carrying out their respective functions under this Part, take into account any advice given by the Health and Safety Commission about any gas safety issue (whether or not in response to consultation under subsection (1)).
(3)For the purposes of this section a gas safety issue is anything concerning the conveyance of gas through pipes, or the use of gas conveyed through pipes, which may affect the health and safety of—
(a)members of the public; or
(b)persons employed in connection with the conveyance of gas through pipes or the supply of gas conveyed through pipes.]
F1S. 4A substituted (20.12.2000) by 2000 c. 27, s. 11; S.I. 2000/3343, art. 2, Sch.(subject to transitional provisions in arts. 3-15)
(1)Section 4AA does not apply in relation to the issuing by the Secretary of State of guidance under section 4AB.
(2)Sections 4AA to 4A do not apply in relation to anything done by the Authority—
(a)in the exercise of functions relating to the determination of disputes; or
(b)in the exercise of functions under section 36A(3).
(3)The Authority may nevertheless, when exercising any function under section 36A(3), have regard to any matter in respect of which a duty is imposed by sections 4AA to 4A if it is a matter to which the Director General of Fair Trading could have regard when exercising that function.
(4)The duties imposed by sections 4AA to 4A do not affect the obligation of the Authority or the Secretary of State to perform or comply with any other duty or requirement (whether arising under this Act or another enactment, by virtue of any Community obligation or otherwise).]
F1S. 4B inserted (20.12.2000) by 2000 c. 27, s. 12; S.I. 2000/3343, art. 2, Sch. (subject to transitional provisions in arts. 3-15)
C1S. 4B(3) excluded (20.12.2000) by S.I. 2000/3343, art. 10(1)(b) (subject to transitional provisions in arts. 3-15)
F1S. 5 and cross-heading preceding it substituted (1.3.1996) by 1995 c. 45, s. 3; S.I. 1996/218, art. 2
(1)Subject to section 6A below and Schedule 2A to this Act, a person who—
(a)conveys gas through pipes to any premises, or to a pipe-line system operated by a [F2gas transporter];
(b)supplies to any premises gas which has been conveyed to those premises through pipes; or
(c)arranges with a [F2gas transporter] for gas to be introduced into, conveyed by means of or taken out of a pipe-line system operated by that transporter,
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.]
F1S. 5 and cross-heading substituted (1.3.1996) by 1995 c. 45, s. 3; S.I. 1996/218, art. 2
F2Words in s. 5(1)(a)(c) substituted (1.10.2001) by 2000 c. 27, s. 108, Sch. 6, Pt. I para. 3; S.I. 2001/3266, art. 2, Sch. (subject to transitional provisions in arts. 3-20)
C1S. 5(1)(a) excluded (8.11.1995 with effect as mentioned in Sch. 5 Pt. II para. 16(1) of the amending Act) by 1995 c. 45, s. 17(1), Sch. 5 Pt. II para. 16(1)(a); S.I. 1996/218, art. 2
S. 5(1)(a) excluded (14.10.1999) (temp. to 1.3.2011 unless revoked earlier) by S.I. 1999/2639, arts. 1(2)(3), 3, 4-6, 7(1)
S. 5(1)(a) restricted (9.12.1999) (temp. to 1.3.2011 unless revoked earlier) by S.I. 1999/3089, arts. 1(2)(3), 3, 5(1)
C2S. 5(1)(a)-(c) excluded (8.11.1995 for specified purposes) by 1995 c. 45, s. 17(1), Sch. 5 Pt. II para. 17(1)(a)
C3S. 5(1)(a) excluded (1.12.1996) by S.I. 1996/2795, arts. 3, 4
C4S. 5(1)(b) excluded (8.11.1995) by 1995 c. 45, s. 17(1), Sch. 5 Pt. II para. 16(1)(b); S.I. 1996/218, art. 2
S. 5(1)(b) excluded (14.10.1999) (temp. to 1.3.2011 unless revoked earlier) by S.I. 1999/2639, arts. 1(2)(3), 3, 4-6, 7(2)
S. 5(1)(b) restricted (9.12.1999) (temp. to 1.3.2011 unless revoked earlier) by S.I. 1999/3089, arts. 1(2)(3), 5(2)
C5S. 5(1)(c) modified (8.11.1995) by 1995 c. 45, s. 17(1), Sch. 5 Pt. II paras. 18(1)
F1S. 6 repealed (1.3.1996) by 1995 c. 45, ss. 3(3), 17(5), Sch. 6; S.I. 1996/218, art. 2
(1)The Secretary of State may, F2. . . by order grant exemption from paragraph (a), (b) or (c) of section 5(1) above—
(a)either to a person or to persons of a class;
(b)either generally or to such extent as may be specified in the order; and
(c)either unconditionally or subject to such conditions as may be so specified.
[F3(1A)Before making an order under subsection (1) the Secretary of State shall give notice—
(a)stating that he proposes to make such an order and setting out the terms of the proposed order;
(b)stating the reasons why he proposes to make the order in the terms proposed; and
(c)specifying the time (not being less than 28 days from the date of publication of the notice) within which representations with respect to the proposals may be made,
and shall consider any representations which are duly made in respect of the proposals and not withdrawn.
(1B)The notice required by subsection (1A) shall be given—
(a)by serving a copy of it on the Authority and the Council; and
(b)by publishing it in such manner as the Secretary of State considers appropriate for bringing it to the attention of those likely to be affected by the proposed order.]
[F4(2)Notice of an exemption granted to a person shall be given—
(a)by serving a copy of the exemption on him; and
(b)by publishing the exemption in such manner as the Secretary of State considers appropriate for bringing it to the attention of other persons who may be affected by it.
(2A)Notice of an exemption granted to persons of a class shall be given by publishing the exemption in such manner as the Secretary of State considers appropriate for bringing it to the attention of—
(a)persons of that class; and
(b)other persons who may be affected by it.
(3)An exemption may be granted—
(a)indefinitely; or
(b)for a period specified in, or determined by or under, the exemption.]
(4)Without prejudice to the generality of paragraph (c) of subsection (1) above, conditions included by virtue of that paragraph in an exemption may require any person carrying on any activity in pursuance of the exemption—
(a)to comply with any direction given by the Secretary of State or the Director as to such matters as are specified in the exemption or are of a description so specified;
(b)except in so far as the Secretary of State or the Director consents to his doing or not doing them, not to do or to do such things as are specified in the exemption or are of a description so specified; and
(c)to refer for determination by the Secretary of State or the Director such questions arising under the exemption as are specified in the exemption or are of a description so specified.
[F5(5)The Secretary of State may by order revoke an order by which an exemption was granted to a person or vary an order by which more than one exemption was so granted so as to terminate any of the exemptions—
(a)at the person’s request;
(b)in accordance with any provision of the order by which the exemption was granted; or
(c)if it appears to the Secretary of State inappropriate that the exemption should continue to have effect.
(6)The Secretary of State may by order revoke an order by which an exemption was granted to persons of a class or vary an order by which more than one exemption was so granted so as to terminate any of the exemptions—
(a)in accordance with any provision of the order by which the exemption was granted; or
(b)if it appears to the Secretary of State inappropriate that the exemption should continue to have effect.
(7)The Secretary of State may by direction withdraw an exemption granted to persons of a class from any person of that class—
(a)at the person’s request;
(b)in accordance with any provision of the order by which the exemption was granted; or
(c)if it appears to the Secretary of State inappropriate that the exemption should continue to have effect in the case of the person.
(8)Before—
(a)making an order under subsection (5)(b) or (c) or (6); or
(b)giving a direction under subsection (7)(b) or (c),
the Secretary of State shall consult the Authority and give notice of his proposal to do so (with reasons) and of a period within which representations may be made to him.
(9)The notice under subsection (8) shall be given—
(a)where the Secretary of State is proposing to make an order under subsection (5)(b) or (c), by serving a copy of it on the person to whom the exemption was granted;
(b)where he is proposing to make an order under subsection (6), by publishing it in such manner as the Secretary of State considers appropriate for bringing it to the attention of persons of the class of persons to whom the exemption was granted; and
(c)where he is proposing to give a direction under subsection (7)(b) or (c), by serving a copy of it on the person from whom he proposes to withdraw the exemption.]]
F1S. 6A substituted (1.3.1996) by 1995 c. 45, s. 4; S.I. 1996/218, art. 2
F2Words in s. 6A(1) repealed (1.10.2001) by 2000 c. 27, ss. 86(1), 108, Sch. 8; S.I. 2001/3266, arts. 1(2), 2, Sch. (subject to transitional provisions in arts. 3-20)
F3S. 6A(1A)(1B) inserted (1.10.2001) by 2000 c. 27, s. 86(2); S.I. 2001/3266, arts. 1(2), 2, Sch. (subject to transitional provisions in arts. 3-20)
F4S. 6A(2)(2A)(3) substituted (1.10.2001) for s. 6A(2)(3) by 2000 c. 27, s. 86(3); S.I. 2001/3266, arts. 1(2), 2, Sch. (subject to transitional provisions in arts. 3-20)
F5S. 6A(5)-(9) substituted (1.10.2001) for s. 6A(5) by 2000 c. 27, s. 86(4); S.I. 2001/3266, arts. 1(2), 2, Sch. (subject to transitional provisions in arts. 3-20)
C1S. 6A extended (8.11.1995 with effect as mentioned in Sch. 5 Pt. II paras. 16(1), 17(1) of the amending Act) by 1995 c. 45, s. 17(1), Sch. 5 Pt. II paras. 16(1)(b), 17(1)(b); S.I. 1996/218, art. 2
(1)In this Part “ [F2gas 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 subsection (3) 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, [F3any 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 [F4gas transporter], or to any pipe-line system so operated which is specified in the licence or an extension of the licence.
Gas Act 1986