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(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and shall consider any representations or objections which are duly made and not withdrawn.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 and to the Council.

(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.

(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.

[F5(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 [F5being 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.]

[F18AA Transfer of licences

(1)A licence—

(a)shall be capable of being transferred by the licence holder, with the consent of the Authority, in accordance with this section and subject to any term of the licence relating to its transfer;

(b)may include conditions which must be complied with before the licence can be transferred.

(2)A transfer may relate to the whole or any part of the licence.

(3)The reference in subsection (2) to part of a licence is a reference to a part of the activities authorised by the licence (whether described by reference to activities being carried on by the licence holder or to activities which he is authorised to carry on).

(4)Such consent may be given subject to compliance with such modification or other conditions as the Authority considers necessary or expedient.

(5)In the case of a partial transfer, conditions imposed under subsection (4) may make as respects so much of the licence as is proposed to be retained by the transferor provision different from that made as respects so much of the licence as is proposed to be transferred.

(6)In deciding whether to give its consent to a proposed transfer, the Authority shall apply the same criteria as it would apply if the Authority were deciding whether—

(a)in the case of a general transfer, to grant a corresponding licence to the transferee; or

(b)in the case of a partial transfer—

(i)to grant to the transferee a licence corresponding to so much of the licence as is proposed to be transferred; and

(ii)to grant to the transferor a licence corresponding to so much of the licence as is proposed to be retained.

(7)The Authority shall—

(a)give the Health and Safety Executive not less than 28 days’ notice of any proposal to consent to any proposed transfer; and

(b)give that Executive and the Secretary of State not less than 28 days’ notice of any proposal to impose a modification condition.

(8)If, before the expiry of the time specified in a notice given to the Secretary of State under subsection (7)(b), the Secretary of State directs the Authority not to impose the condition, the Authority shall comply with the direction.

(9)Before giving consent to the transfer of a licence, the Authority shall give notice—

(a)stating that it proposes to grant consent to the transfer;

(b)stating the reasons why it proposes to give consent; and

(c)specifying the time from the date of publication of the notice (not being less than two months) within which representations or objections with respect to the transfer may be made,

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

(10)A notice under subsection (9) shall be given by publishing the notice in such manner as the Authority considers appropriate for bringing it to the attention of persons likely to be affected by the transfer.

(11)A purported transfer of a licence shall be void—

(a)if the licence is not capable of transfer or the Authority has not given its consent;

(b)if the purported transfer is in breach of a condition of the licence; or

(c)if there has, before the purported transfer, been a contravention of a condition subject to compliance with which the Authority’s consent is given.

(12)In this section—

• “transfer” includes any form of transfer or assignment or, in Scotland, assignation;

• “modification condition” means a condition requiring or otherwise providing for the making of modifications to the conditions of a licence.]

[ F18AModification or removal of the 25,000 therm limits

(1)The Secretary of State may by order amend [F2section 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] by substituting—

(a)where the limit is for the time being expressed by reference to a number of therms—

(i)such lower number of therms as he considers appropriate; or

(ii)such lower limit, expressed by reference to a number of kilowatt hours, as he considers appropriate; or

(b)where the limit is for the time being expressed by reference to a number of kilowatt hours, such lower number of kilowatt hours as he considers appropriate.

(2)An order under subsection (1) above may be made so as to provide for the number specified in one provision to differ from that for the time being specified in any of the other provisions.

F3(3). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F3(4). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .]

[F1 The gas code]

[F18B The gas code

The provisions of Schedule 2B to this Act (which relate to rights and obligations of licence holders and consumers and related matters) shall have effect.]

[F1 Powers and duties of public gas transporters]

[F19 General powers and duties

(1)It shall be the duty of a [F2gas 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 [F3—

(i)]

to connect to that system, and convey gas by means of that system to, any premises [F4; or.

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

[F5(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 [F2gas transporter] to avoid any undue preference or undue discrimination—

(a)in the connection of premises [F6, 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.

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

(a)Schedule 3 to this Act (which provides for the acquisition of land by [F2gas transporters]); and

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

[F110 Duty to connect certain premises

(1)Subsection (2) below applies to any premises in an authorised area of a [F2gas 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 [F2gas 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 [F2gas 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 [F2gas transporter] shall maintain the connection until such time as it is no longer required by the owner or occupier of the premises.

[F3(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 [F2gas 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 [F2gas 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.

[F4(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 [F2gas 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 [F5or 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 [F6, 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 [F2gas 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 [F2gas 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 [F2gas 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 [F2gas 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 [F2gas transporter], means any distribution main in [F7an 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 [F2gas 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 [F2gas 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.]