Office of Public Sector Information
SCHEDULE 3 continued
“(1A) Where at any time the Director modifies under subsection (1) above the standard conditions of licences under section 7 above, licences under subsection (1) of section 7A above or licences under subsection (2) of that section, he—
(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 make such incidental or consequential modifications as he considers necessary or expedient of any conditions of licences under that provision granted before that time;
and the above reference to subsection (1) above is a reference to that subsection as it applies in relation to a report on a reference under section 24(1A) above.”
(3) In subsection (4) of that section, for the words “public gas supplier” there shall be substituted the words “holder of the licence or, as the case may be, the relevant licence holders, to the Health and Safety Executive”.
(4) After that subsection there shall be inserted the following subsection—
“(5) Where at any time the Director modifies standard conditions under subsection (1A)(a) above for the purposes of their incorporation in licences under section 7 or 7A(1) or (2) above granted after that time, he shall publish the modifications in such manner as he considers appropriate.”
25 For section 27 of the 1986 Act there shall be substituted the following section—
(1) Where in the circumstances mentioned in subsection (3) or (4) below the Secretary of State by order exercises any of the powers specified in Parts I and II of Schedule 8 to the [1973 c. 41.] Fair Trading Act 1973 or section 10(2)(a) of the [1980 c. 21.] Competition Act 1980, 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 subsection (1) of section 7A above or licences under subsection (2) of that section,
to such extent as may appear to him to be requisite or expedient for the purpose of giving effect to or of taking account of any provision made by the order.
(2) Where at any time the Secretary of State modifies under subsection (1)(b) above the standard conditions of licences under section 7 above, licences under subsection (1) of section 7A above or licences under subsection (2) of that section, he—
(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 he considers necessary or expedient of any conditions of licences under that provision granted before that time.
(3) Subsection (1) above shall have effect where—
(a) the circumstances are as mentioned in section 56(1) of the said Act of 1973 (order on report on monopoly reference), or in section 10(1) of the said Act of 1980 (order on report on competition reference); and
(b) the monopoly situation exists in relation to, or (as the case may be) the anti-competitive practice relates to—
(i) the carrying on of activities authorised or required 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.
(4) Subsection (1) above shall also have effect where—
(a) the circumstances are as mentioned in section 73(1) of the said Act of 1973 (order on report on merger reference); and
(b) at least one of the two or more enterprises—
(i) which ceased to be distinct enterprises; or
(ii) in the application of that provision as it has effect by virtue of section 75(4)(e) of that Act, which would cease to be distinct enterprises,
was or, as the case may be, is engaged in the carrying on of activities authorised or required by a licence.
(5) Where at any time the Secretary of State modifies standard conditions under subsection (2)(a) above for the purposes of their incorporation in licences granted after that time, he shall publish those modifications in such manner as he considers appropriate.
(6) In this section expressions which are also used in the said Act of 1973 or the said Act of 1980 have the same meanings as in that Act.”
26 After section 27 of the 1986 Act there shall be inserted the following section—
(1) Subject to subsection (2) below, any dispute arising under section 9(1)(b) or (2), 10 or 11 above, regulations under section 10 above, or any provision of paragraphs 2, 3, 15 or 16 of Schedule 2B to this Act, between a public gas transporter or gas supplier and a person who is, or wishes to become, a domestic customer—
(a) may be referred to the Director by either party, or with the agreement of either party, by the Council; and
(b) on such a reference, shall be determined by order made either by the Director, or if he thinks fit by an arbitrator (or in Scotland arbiter) appointed by him.
(2) No dispute which—
(a) arises under section 9(1)(b) above and relates to the connection of any premises to a pipe-line system operated by a public gas transporter; or
(b) arises under section 10 above, or regulations under that section, and relates to the connection of any premises to a main of such a transporter,
may be referred to the Director after the end of the period of 12 months beginning with the time when the connection is made.
(3) Any person making an order under subsection (1) above shall include in the order his reasons for reaching his decision with respect to the dispute.
(4) The practice and procedure to be followed in connection with any such determination shall be such as the Director may consider appropriate.
(5) Where any dispute between a public gas transporter and a person requiring a connection to a main of the transporter falls to be determined under this section, the Director may give directions as to the circumstances in which, and the terms on which, the transporter is to connect or (as the case may be) to maintain the connection pending the determination of the dispute.
(6) Where any dispute between a gas supplier and a person requiring a supply of gas falls to be determined under this section, the Director may give directions as to the circumstances in which, and the terms on which, the supplier is to give or (as the case may be) to continue to give the supply pending the determination of the dispute.
(7) Where any dispute arising under section 11(1) above falls to be determined under this section, the Director may give directions as to the security (if any) to be given pending the determination of the dispute.
(8) Any direction under subsection (5), (6) or (7) above may be expressed to apply either in relation to a particular case or in relation to a class of case.
(9) An order under this section—
(a) may include such incidental, supplemental and consequential provision (including provision requiring either party to pay a sum in respect of the costs or expenses incurred by the person making the order) as that person considers appropriate; and
(b) shall be final and—
(i) in England and Wales, enforceable, in so far as it includes such provision as to costs or expenses, as if it were a judgment of a county court; and
(ii) in Scotland, enforceable as if it were an extract registered decree arbitral bearing a warrant for execution issued by the sheriff.
(10) In including in an order under this section any such provision as to costs or expenses, the person making the order shall have regard to the conduct and means of the parties and any other relevant circumstances.”
27 (1) In subsections (1), (2) and (4) of section 28 of the 1986 Act (orders for securing compliance with certain provisions), for the words “public gas supplier” there shall be substituted the words “licence holder”.
(2) In subsection (5) of that section—
(a) for the words “section 4” there shall be substituted the words “section 4 or 4A”;
(b) for the words “public gas supplier” there shall be substituted the words “licence holder”; and
(c) for the word “supplier”, in the second place where it occurs, there shall be substituted the words “licence holder”.
(3) In subsections (6) and (7) of that section, for the words “public gas supplier” there shall be substituted the words “licence holder”.
(4) After subsection (7) of that section there shall be inserted the following subsection—
“(7A) Without prejudice to the generality of the power conferred by subsection (1) above, the provision that may be made in a final order includes, in particular, the imposition by the Director on the licence holder to whom the order relates of a requirement to pay to the Director a monetary penalty of such amount as may be appropriate, in all the circumstances of the case, in respect of the contravention in question.”
(5) In subsection (8) of that section—
(a) in the definition of “relevant condition”, for the words “public gas supplier” there shall be substituted the words “licence holder” and for the word “authorisation” there shall be substituted the word “licence”; and
(b) for the definition of “relevant requirement” there shall be substituted the following definition—
““relevant requirement”, in relation to a licence holder, means any requirement imposed on him by or under section 9(1) or (2), 10(2), (3) or (14), 11(2), 12(1) or (6), 18(11), 22A(1) or 27A(5) or (6) above or section 33B, 33BB, 33D or 33E below or any provision of paragraphs 3, 6, 15, 16, 20(5) and 28(2) of Schedule 2B to this Act.”
(6) After that subsection there shall be inserted the following subsection—
“(9) Any sums received by the Director by way of monetary penalty under this section shall be paid into the Consolidated Fund.”
28 In subsections (2) to (4), (6) and (7) of section 29 of the 1986 Act (procedural requirements), for the words “public gas supplier”, in each place where they occur, there shall be substituted the words “licence holder”.
29 (1) In subsection (1) of section 30 of the 1986 Act (validity and effect of orders), for the words “public gas supplier” there shall be substituted the words “licence holder”.
(2) For subsection (2) of that section there shall be substituted the following subsection—
“(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 licence holder have been substantially prejudiced by a failure to comply with those requirements—
(a) may quash the order or any provision of the order; or
(b) if and to the extent that the application related to so much of an order as imposes a monetary penalty, may substitute a monetary penalty of such lesser amount as the court considers appropriate in all the circumstances of the case.”
30 (1) In subsections (1) and (2) of section 31 of the 1986 Act (duty of Director to investigate certain matters), for the words “an enforcement matter” there shall be substituted the words “a reserved matter”.
(2) For subsection (3) of that section there shall be substituted the following subsections—
“(3) In this section and section 32 below “reserved matter” means any matter—
(a) in respect of which any functions of the Director under section 28 above are or may be exercisable; and
(b) which has not been designated by the Director as a matter which is to be investigated by the Council.
(4) A designation under subsection (3) above may be made—
(a) either generally or in relation to matters of a particular class or a particular matter; and
(b) either unconditionally or subject to such conditions as may be specified in the designation.
(5) Conditions specified in a designation under subsection (3) above may contain provision for the designation to cease to have effect, either generally or in relation to matters of a particular class or a particular matter, in such circumstances as may be determined by or under the conditions.”
31 (1) For subsection (2) of section 32 of the 1986 Act (duty of Council to investigate certain matters) there shall be substituted the following subsection—
“(2) This subsection applies to any matter (not being a reserved matter) in respect of which any functions of the Director under this Part are or may be exercisable.”
(2) In subsections (3) and (5) of that section, the words “paragraph (a) of” shall cease to have effect.
(3) In subsection (4) of that section, the word “already” shall cease to have effect.
(4) Subsections (6) and (7) of that section shall cease to have effect.
32 In subsection (1) of section 32A of the 1986 Act (preliminary investigation by Council of certain disputes), for the words “section 14A” there shall be substituted the words “section 27A”.
33 (1) In subsection (2) of section 33 of the 1986 Act (power of Council to investigate other matters), for the words “public gas suppliers” there shall be substituted the words “gas suppliers”.
(2) In subsection (3) of that section, the words “but nothing in this subsection shall require the Council to send any such copy to the Director” shall cease to have effect.
(3) After that subsection there shall be inserted the following subsection—
“(4) References in this section to gas suppliers include references to persons supplying gas which they are authorised to supply by paragraph 1 of Schedule 2A to this Act.”
34 (1) In subsection (1) of section 33A of the 1986 Act (standards of performance in individual cases), for the words “public gas suppliers to tariff customers” there shall be substituted the words “gas suppliers to domestic customers”.
(2) In subsection (2) of that section, for the words “the public gas suppliers” there shall be substituted the words “gas suppliers”.
(3) In subsection (3) of that section—
(a) for the words “public gas suppliers”, in each place where they occur, there shall be substituted the words “gas suppliers”;
(b) for the words “tariff customers” there shall be substituted the words “domestic customers”; and
(c) at the beginning of paragraph (d) there shall be inserted the words “if the Director is of the opinion that the differences are such that no gas supplier would be unduly disadvantaged in competing with other gas suppliers,”.
(4) In subsection (4) 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”.
(5) Subsections (10) and (11) of that section shall cease to have effect.
35 (1) In subsection (1) of section 33B of the 1986 Act (overall standards of performance), for the words “public gas suppliers” there shall be substituted the words “gas suppliers”.
(2) In subsection (2) of that section, for the words “the public gas suppliers” there shall be substituted the words “gas suppliers”.
(3) For subsection (3) of that section there shall be substituted the following subsections—
“(3) Different standards may be determined for different gas suppliers if the Director is of the opinion that the differences are such that no gas supplier would be unduly disadvantaged in competing with other gas suppliers.
(3A) Standards may be determined either as respects the provision of gas supply services generally or as respects the provision of such services to customers of a particular class or description.”
(4) In subsection (4) of that section, for the words “public gas supplier” there shall be substituted the words “gas supplier”.
36 After section 33B of the 1986 Act there shall be inserted the following section—
(1) The Director may, after consulting gas suppliers and persons or bodies appearing to him to be representative of persons likely to be affected, from time to time—
(a) determine such standards of performance in connection with the promotion of the efficient use of gas by consumers as, in his opinion, ought to be achieved by gas suppliers; and
(b) arrange for the publication, in such form and in such manner as he considers appropriate, of the standards so determined.
(2) Different standards may be determined for different gas suppliers if the Director is of the opinion that the differences are such that no gas supplier would be unduly disadvantaged in competing with other gas suppliers.
(3) Each gas supplier shall, in such form and manner and with such frequency as the Director may direct, take steps to inform his customers of—
(a) the standards determined under this section which are applicable to that supplier; and
(b) that supplier’s level of performance as respects those standards.”
37 (1) In subsection (1) of section 33C of the 1986 Act (information with respect to levels of performance), for the words “public gas suppliers”, in each place where they occur, there shall be substituted the words “gas suppliers”.
(2) In subsection (2) of that section—
(a) for the words “public gas supplier” there shall be substituted the words “gas supplier”; and
(b) for the words “section 15B or 33B” there shall be substituted the words “section 33B or 33BB”.
(3) In subsection (3) of that section, for the words “public gas supplier” there shall be substituted the words “gas supplier”.
(4) In subsection (4) of that section, for the words “public gas suppliers” there shall be substituted the words “gas suppliers”.
38 (1) In subsection (1) of section 33D of the 1986 Act (information to be given to customers about overall performance), for the words “public gas supplier” there shall be substituted the words “gas supplier”.
(2) After subsection (2) of that section there shall be inserted the following subsection—
“(3) Where the standards of performance mentioned in subsection (1) above relate to the provision of gas supply services to customers of a particular class or description, the reference in that subsection to the supplier’s customers shall be construed as a reference to such of his customers as are of that class or description.”
39 (1) In subsection (1) of section 33E of the 1986 Act (procedures for dealing with complaints)—
(a) for the words “public gas supplier” there shall be substituted the words “gas supplier who is authorised to supply gas to domestic customers and whose licence incorporates the standard conditions”; and
(b) for the words “tariff customers or potential tariff customers” there shall be substituted the words “domestic customers or potential domestic customers”.
(2) In subsections (2), (3), (4) and (6) of that section, for the words “public gas supplier”, in each place where they occur, there shall be substituted the words “gas supplier”.
40 (1) In subsection (1) of section 34 of the 1986 Act (general functions of Director), for the words “activities connected with the supply of gas through pipes” there shall be substituted the following paragraphs—
“(a) such activities as are mentioned in section 5(1) above; 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) In subsection (2) of that section, for the words “the supply of gas through pipes, and the persons providing such supplies” there shall be substituted the following paragraphs—
“(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,”.
(3) In subsection (4) of that section, after the words “function of the Director” there shall be inserted the words “or the Secretary of State.”
(4) After that subsection there shall be inserted the following subsection—
“(5) The Director shall have power to make agreements with the Health and Safety Commission for the Director to perform on behalf of that Commission or the Health and Safety Executive (with or without payment) any of the functions of that Commission or, as the case may be, that Executive.”
41 In subsection (1) of section 35 of the 1986 Act (publication of information and advice), for the words “tariff customers and potential tariff customers of public gas suppliers” there shall be substituted the words “customers and potential customers of gas suppliers”.
42 (1) In subsection (1) of section 36 of the 1986 Act (keeping of register)—
(a) for the words “section 6 above” there shall be substituted the words “paragraph 5 of Schedule 2A to this Act”; and
(b) for the words “authorisations under section 7 or 8” there shall be substituted the words “licences under section 7 or 7A”.
(2) In subsection (2) of that section—
(a) for the words “section 6 above” there shall be substituted the words “paragraph 5 of Schedule 2A to this Act”;
(b) after the words “particular class” there shall be inserted the words “and every direction under subsection (5) of that section”;
(c) for the words “authorisation under section 7 or 8” there shall be substituted the words “licence under section 7 or 7A”; and
(d) for the words “such an authorisation” there shall be substituted the words “such a licence”.
43 After section 36 of the 1986 Act there shall be inserted the following section—
(1) If and to the extent that he is requested by the Director General of Fair Trading to do so, it shall be the duty of the Director to exercise the functions of that Director under Part III of the [1973 c. 41.] Fair Trading Act 1973 (“the 1973 Act”) so far as relating to courses of conduct which are or may be detrimental to the interests of consumers of gas conveyed through pipes, whether those interests are economic or interests in respect of health, safety or other matters; and references in that Part to that Director shall be construed accordingly.
(2) There are hereby transferred to the Director (so as to be exercisable concurrently with the Director General of Fair Trading)—
(a) the functions of that Director under sections 44 and 45 of the 1973 Act;
(b) the functions of that Director under sections 50, 52, 53, 86 and 88 of that Act; and
(c) the functions of that Director under sections 56A to 56G of that Act,
so far as relating to monopoly situations which exist or may exist in relation to commercial activities connected with the carrying on of activities to which this subsection applies; and references in Part IV and sections 86, 88 and 133 of that Act to that Director shall be construed accordingly.
(3) There are hereby transferred to the Director (so as to be exercisable concurrently with the Director General of Fair Trading) the functions of that Director under sections 2 to 10 and 16 of the [1980 c. 21.] Competition Act 1980 (“the 1980 Act”) so far as relating to courses of conduct which have or are intended to have or are likely to have the effect of restricting, distorting, or preventing competition in connection with the carrying on of activities to which this subsection applies; and references in those sections and in section 19 of that Act to that Director shall be construed accordingly.
(4) Subsections (2) and (3) above apply to—
(a) such activities as are mentioned in section 5(1) above; and
(b) activities ancillary to such activities as are so mentioned (including in particular the storage of gas, the provision and reading of meters and the provision of pre-payment facilities).
(5) Before either Director first exercises in relation to any matter functions transferred by any of the following provisions, namely—
(a) paragraph (a) of subsection (2) above;
(b) paragraph (b) of that subsection;
(c) paragraph (c) of that subsection; and
(d) subsection (3) above,
he shall consult the other Director; and neither Director shall exercise in relation to any matter functions transferred by any of those provisions if functions transferred by that provision have been exercised in relation to that matter by the other Director.
(6) It shall be the duty of the Director, for the purpose of assisting the Monopolies Commission in carrying out an investigation on a reference made to them by the Director by virtue of subsection (2) or (3) above, to give to the Commission—
(a) any information which is in his possession and which relates to matters falling within the scope of the investigation and—
(i) is requested by the Commission for that purpose; or
(ii) is information which in his opinion it would be appropriate for that purpose to give to the Commission without any such request; and
(b) any other assistance which the Commission may require and which it is within his power to give, in relation to any such matters,
and the Commission shall, for the purposes of carrying out any such investigation, take into account any information given to them for that purpose under this subsection.
(7) If any question arises as to whether subsection (2) or (3) above applies to any particular case, that question shall be referred to and determined by the Secretary of State; and no objection shall be taken to anything done under—
(a) Part IV or section 86 or 88 of the 1973 Act; or
(b) sections 2 to 10 of the 1980 Act,
by or in relation to the Director on the ground that it should have been done by or in relation to the Director General of Fair Trading.
(8) Section 93B of the 1973 Act (offences of supplying false or misleading information to the Secretary of State, the Director General of Fair Trading or the Monopolies Commission in connection with their functions under Parts IV, V, VI or VIII of the 1973 Act or under the 1980 Act) shall have effect, so far as relating to functions exercisable by the Director by virtue of subsection (2) or (3) above, as if the reference in subsection (1)(a) of that section to the Director of Fair Trading included a reference to the Director.
(9) Expressions used in this section which are also used in the 1973 Act or the 1980 Act have the same meanings as in that Act.
(10) Any reference in this Part to functions of the Director under this Part, or to functions assigned to him by or under this Part, includes a reference to functions transferred to the Director by subsection (2) or (3) above.”
44 After section 36A of the 1986 Act there shall be inserted the following section—
(1) If and to the extent that the Secretary of State so directs, the functions of the Secretary of State under section 6 of the [1985 c. 72.] Weights and Measures Act 1985 (testing of standards and equipment) so far as relating to—
(a) any article used or proposed to be used as a standard of a unit of measurement in relation to gas;
(b) any measuring equipment, or other metrological equipment, for use in relation to gas; or
(c) any article for use in connection with any such equipment,
shall be exercisable by the Director concurrently with the Secretary of State; and references in that section to the Secretary of State shall be construed accordingly.
(2) Any sums received by the Director by virtue of this section shall be paid into the Consolidated Fund.”
45 For section 37 of the 1986 Act there shall be substituted the following section—
(1) The Director shall from time to time direct that the maximum prices at which gas supplied by gas 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.
Gas Act 1995