The Gas (Applications for Licences and Extensions and Restrictions of Licences) Regulations 2001

Statutory Instrument 2001 No. 3353

The Gas (Applications for Licences and Extensions and Restrictions of Licences) Regulations 2001

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STATUTORY INSTRUMENTS

2001 No. 3353
GAS
The Gas (Applications for Licences and Extensions and Restrictions of Licences) Regulations 2001

	Made	28th September 2001
	Coming into force	1st October 2001

The Gas and Electricity Markets Authority[1], in exercise of the powers conferred on it by sections 7B(1), (2) and (11)[2], 47 and 48(1) of the Gas Act 1986[3], and of all other powers enabling it in that behalf, hereby makes the following Regulations: -

Citation, commencement and transitional and saving provisions for applications lodged before 1st October 2001
     1. - (1) These Regulations may be cited as the Gas (Applications for Licences and Extensions and Restrictions of Licences) Regulations 2001 and shall come into force on 1st October 2001.

    (2) In relation to any application made before the date on which these Regulations come into force the Gas (Applications for Licences and Extensions and Restrictions of Licences) Regulations 1996[4] shall continue to apply to the exclusion of these Regulations.

Revocation
     2. Subject to regulation 1, the Gas (Applications for Licences and Extensions and Restrictions of Licences) Regulations 1996 are hereby revoked.

Interpretation
     3. - (1) In these Regulations, unless the context otherwise requires -

"the 2000 Act" means the Utilities Act 2000;

"the Act" means the Gas Act 1986;

"application" means an application for a licence, an application for an extension of a licence or an application for a restriction of a licence under the Act; and references to an application in respect of a licence shall be construed accordingly;

"the Authority" means the Gas and Electricity Markets Authority established by section 1 of the 2000 Act;

"domestic premises" means premises used wholly or mainly for domestic purposes;

"extension", in relation to a gas transporter licence, means an extension of the licence under section 7(4) of the Act and, in relation to a gas supplier licence or a gas shipper licence, means an extension of the licence under section 7A(4) of the Act;

"gas shipper licence" means a licence granted or to be granted under section 7A(2) of the Act;

"gas supplier licence" means a licence granted or to be granted under section 7A(1) of the Act;

"gas transporter licence" means a licence granted or to be granted under section 7 of the Act; and

"restriction", in relation to a gas transporter licence, means a restriction of the licence under section 7(4A) of the Act and, in relation to a gas supplier licence or a gas shipper licence, means a restriction of the licence under section 7A(6) of the Act.

    (2) In these Regulations, unless the context otherwise requires, a reference to a standard condition is a reference to a standard condition in relation to licences under section 7, 7A(1) or 7A(2) of the Act, as the case may be, which is determined under section 81(2) of the 2000 Act, subject to such modifications of the standard conditions made under Part I of the Act or the 2000 Act after the determination under that section.

    (3) Unless the context otherwise requires, other expressions appearing in these Regulations shall have the same meaning, if any, as they have in Part I of the Act.

    (4) In these Regulations, unless the context otherwise requires -

Manner of application
4. An application shall be -

(a) made in writing, addressed to the Authority and delivered or sent by prepaid post to the Authority at its principal office; and

(b) signed and dated by or on behalf of the applicant, stating, where signed on behalf of the applicant, the capacity of the signatory.

Form of application
5. An application shall be -

(a) in the form specified in Schedule 1 or a form to the like effect, and shall contain the information there specified; and

(b) accompanied by the information and documents specified in Schedule 2.

Additional information and documents to accompany application
6. - (1) Subject to paragraphs (2) and (3) -

(a) an application in respect of a gas supplier licence shall be accompanied by the information and documents specified in Part I of Schedule 3;

(b) an application in respect of a gas shipper licence shall be accompanied by the information and documents specified in Part II of Schedule 3; and

(c) an application in respect of a gas transporter licence shall be accompanied by the information and documents specified in Part III of Schedule 3.

(2) The obligation imposed by paragraph (1) shall, to the extent that information and documents are specified in Schedule 3 by reference to, or in relation to, a standard condition, apply -

(a) subject to paragraph (3), in the case of an application for a licence, other than for a gas supplier licence of the type described in section 8(2) of the Act, as if the standard condition in question were to be included and have effect in any licence granted as a result of the application;

(b) in the case of an application for an extension or restriction of a licence, in relation to such of the standard conditions in question as have been included and have effect in that licence.

    (3) Where a modification to any standard condition is specified in accordance with paragraph 3(1) of Schedule 1, the obligation imposed by paragraph (2)(a) above shall be modified accordingly.

Application fees
     7. - (1) Subject to paragraph (2), each application of the description specified in column 1 of Schedule 4 shall be accompanied by the corresponding fee specified in column 2 of that Schedule.

    (2) Where more than one such fee would, apart from this paragraph, be payable in respect of a particular application, only the higher or highest such fee, as the case may be, shall be payable.

Notice of applications
     8. - (1) The period prescribed for the purpose of section 7B(2) of the Act (notice of applications) is seven days.

    (2) The notice of an application to be published within the prescribed period -

(a) in respect of an application for an extension of a gas transporter licence, shall be published -

(b) in respect of any other notice of application, shall be published in the London and Edinburgh Gazettes.

(3) Notice of an application in respect of a gas supplier licence which would authorise, or authorises, the supply of gas to domestic premises to which gas is to be, or is, conveyed by a gas transporter shall also be published within the prescribed period -

(a) where the application relates to premises of a specified description and is not limited to premises situated in an area specified in the application, in such newspapers as are calculated to ensure that the notice is circulated throughout Great Britain;

(b) where the applications relates to premises situated in an area specified in the application, in such newspapers as are calculated to ensure that the notice is circulated throughout that area;

(c) where the application relates to particular premises, in such newspapers as are calculated to ensure that the notice is circulated throughout the area or areas in which those premises are situated.

    (4) Notice of an application in respect of a gas transporter licence shall also be published within the prescribed period where the application relates to the conveyance of gas through pipes to premises in a specified area, in such newspapers as are calculated to ensure that the notice is circulated throughout that area.

    (5) The applicant shall deliver, or send by prepaid post, a copy of the London and, if applicable, Edinburgh Gazettes and of each newspaper in which notice of the application is published in accordance with this regulation to the Authority at its principal office within seven days of their publication.

    (6) In this regulation "the prescribed period" means the period referred to in paragraph (1).

The seal of the Gas and Electricity Markets Authority here affixed is authenticated by the signature of

L.S.

R. A. M. Ramsay,
A member of the Authority

28th September 2001

SCHEDULE 1Regulation 5

FORM OF APPLICATION IN RESPECT OF A GAS TRANSPORTER LICENCE, GAS SUPPLIER LICENCE OR GAS SHIPPER LICENCE UNDER THE GAS ACT 1986

GENERAL PARTICULARS
1. State -

(1) name and address of applicant in full; in the case of a partnership or other joint venture (other than a body corporate), give the names and addresses of each party concerned

(2) name, address and telephone number of person to whom correspondence or enquiries concerning the application should be directed

(3) whether the application is in respect of a gas supplier licence, a gas shipper licence or a gas transporter licence[5]

(4) whether the application is for a licence, an extension of a licence or a restriction of a licence[6]

(5) the date from which the licence or extension or restriction is desired to take effect

(6) the kind of gas to which the application relates[7].

2. - (1) State whether the applicant is a public limited company, private limited company, overseas company, other body corporate, partnership, unincorporated association, sole trader or other entity (and in the last case give particulars of the legal status).

(2) If the applicant is a body corporate, state -

(3) If the applicant is neither a body corporate nor a sole trader, give the name(s) and address(es) of the person or persons in whom effective control of the applicant rests.

(4) Where any person (other than a person whose name is given at paragraph 2(2)(d) or paragraph 2(3) (above) holds 20 per cent or more of any class of the shares[9] of the applicant, give the name and address of each such person, specifying in each case the number of shares so held and the percentage of the aggregate number of shares of that class represented thereby.

(5) Give particulars of any licences under the Act or the Electricity Act 1989[10] held, applied for (whether or not successfully) or intended to be applied for by the applicant or (so far as is known to the applicant) by any person who is a related person in relation to the applicant[11].

DETAILS OF APPLICATION
3. - (1) If the application is for a licence, other than a gas supplier licence of the type specified in section 8(2) of the Act, describe -

(2) If the application is for a gas supplier licence of the type specified in section 8(2) of the Act, specify, with reasons, any standard conditions that in the applicant's opinion should be included and have effect in the licence.

SCHEDULE 2Regulation 5

DOCUMENTS AND OTHER INFORMATION TO ACCOMPANY AN APPLICATION[12]

Financial Information
1. If the applicant is a company, where available, the documents specified in sub-paragraph (a) and, if the applicant is a subsidiary undertaking, also those specified in sub-paragraphs (b) and, if applicable, (c) below.

(b) Copies of -

(c) If the documents specified in sub-paragraph (b) above do not include the consolidated audited annual accounts for any parent undertaking or subsidiary undertaking of the applicant established outside Great Britain, copies of such accounts, together with any auditors' reports, as indicate the financial state of affairs of the group in question -

2. Where the applicant is not a company, such accounts and other information as indicate the financial state of affairs of the applicant and its profit and loss, and the statements for the most recent period, together with copies of the latest audited annual accounts where such accounts have been prepared, and of any person in whom effective control of the applicant resides -

3. Where any of the documents mentioned in paragraph 1 or, where applicable, paragraph 2 above is not supplied, an explanation of why it is not supplied together with such financial information to the like effect as can reasonably be supplied.

4. A statement giving such further particulars (if any), whether by way of financial projections, sources of finance or otherwise, as will, in conjunction with such information and documents as is provided in accordance with paragraphs 1, 2 or 3 above, indicate whether the applicant would be likely to be able to finance the activities authorised by its licence if the application were granted.

Proposed business
     5. Provide an outline statement of the business proposals, for that business of the applicant to which the application relates, for the next five years including annual forecasts of costs, sales and revenues and project financing, stating the assumptions underlying the figures provided. (The statement of the first year's forecasts of costs, sales and revenues and project financing to be broken down on a month by month basis.)

     6. Details of any expected subsequent substantial capital outflows including major decommissioning costs.

     7. Estimates of net annual cash flows for subsequent periods sufficient to demonstrate the financial security and feasibility of the project(s) to which the application relates.

Expertise of applicant
     8. A statement giving such particulars of the applicant, and of any sub-contractors or other persons on whose expertise the applicant proposes to rely, as may indicate whether the applicant has or will acquire the necessary skills to undertake the activities in respect of which the application is made.

Interpretation
     9. In this Schedule -

"annual accounts" has the meaning given by section 262(1) of the 1985 Act and shall be construed in accordance with section 261(2) of that Act;

"auditors' report" means a report prepared under section 235(1) of the 1985 Act;

"company" means -

"group" has the meaning given by section 262 of the 1985 Act;

"group accounts" means such accounts as are required to be prepared by section 227 of the 1985 Act, or, as the case may be, delivered under section 228(2)(e) of that Act, together with any accounts required to be delivered in accordance with section 243(2) of that Act;

"parent undertaking" and "subsidiary undertaking" have the meanings given by section 258 of the 1985 Act; and

SCHEDULE 3Regulation 6

PART I
FURTHER INFORMATION AND DOCUMENTS TO ACCOMPANY AN APPLICATION IN RESPECT OF A GAS SUPPLIER LICENCE[14]
1. A gas supplier licence may authorise the holder to supply gas -

(see section 7A(1) of the Act)

Please specify whether (a), (b) or (c) above is applicable. Provide a sufficient description adequately specifying[15] the premises or a description of the premises and the location of the premises intended to be supplied, and, in the case of an application that relates to (c) above, also the specified area. Also state whether the application relates to domestic premises.

2. For all applications for gas supplier licences, or extensions of such licences, state whether the licence or extension is to authorise the supply of gas to premises to which it is conveyed by a gas transporter, and if not, give details of any exemption under section 6A of the Act under which the gas is or will be conveyed.

3. Provide a statement of -

Supply to domestic premises

4. If the application relates to the supply of gas to domestic premises to which gas is, or is to be, conveyed by a gas transporter, the applicant shall provide -

Supply of gas to premises which are not domestic premises

5. If the application relates to the supply of gas to any premises which are not domestic premises and to which gas is, or is to be, conveyed by a gas transporter, the applicant shall provide -

Restriction of a gas supplier licence

6. If the application is for a restriction of a licence -

(b) unless there are, at the date of the application, no relevant consumers (within the meaning of section 7A(10) of the Act) in relation to the applicant, a description of the applicant's proposed arrangements under section 7A(9) of the Act for -

PART II
FURTHER INFORMATION AND DOCUMENTS TO ACCOMPANY AN APPLICATION IN RESPECT OF A GAS SHIPPER LICENCE[17]
1. A gas shipper licence may authorise the holder to-

(see section 7A(2) of the Act)

Provide a sufficient description adequately specifying the premises or a description of the premises, and also the specified area, if any, to which the application relates.

2. Provide a statement of -

3. If the application is for a licence or an extension to a licence, details, in relation to each gas transporter in respect of whose pipe-line system the applicant proposes to make arrangements of the sort referred to in section 7A(2) of the Act, of -

(b) if (a)(ii) above is the case, the manner in which the applicant proposes to comply with that standard condition.

4. A description of the applicant's proposed arrangements for compliance with the applicable requirements of standard conditions 3 (General Obligations in Respect of Use of Relevant Transporter's Pipe-line System), 8 (Information as Respects Premises Served), 11 (Supply and Return of, and Information etc Relating to, Gas Meters), 16 (Arrangements in Respect of Powers Entry). 16A (Authorisation of Officers), and 16B (Exercise of Powers of Entry).

5. A description of the applicant's proposed arrangements for compliance with the requirements of standard condition 5 (Obligations as Respects Emergencies etc) in relation to the handling of a pipe-line system emergency.

PART III
FURTHER INFORMATION AND DOCUMENTS TO ACCOMPANY AN APPLICATION IN RESPECT OF A GAS TRANSPORTER LICENCE[18]
1. A gas transporter licence may authorise the holder to convey gas -

(see section 7 of the Act)

Provide a sufficient description adequately specifying the premises or pipe-line system or a description of the premises or pipe-line system and its location, and, in the case of an application that relates to (c) above, also the specified area. Also state whether the application relates to domestic premises. For applications within paragraph 1(c)(ii) above, also specify the description of pipe-line system to which the application relates (stating, in particular, whether it relates only to any system which is designed to receive gas at an operating pressure not exceeding 7 bar gauge).

2. Provide a statement of -

Together with -

3. Such particulars as will indicate whether any pipe-line system through which the applicant would be authorised to convey gas if the application were granted would be operated safely.

4. Particulars of the applicant's proposed arrangements to secure -

5. Particulars of the applicant's proposed arrangements for compliance with the applicable requirements of standard conditions 4 (Charging of Gas Shippers-General), 4B (Connection Charges etc), 5 (System Development Obligations), 6 (Emergency Services and Enquiry Service Obligations), 7 (Provision of Information Relating to Gas Illegally Taken), 8 (Provision and Return of Meters), 9 (Network Code), 18 (Provision of Services for Persons who are of Blind or Deaf), 19 (Arrangements in Respect of Powers of Entry), 19A (Authorisation of Officers), 19B (Exercise of Powers of Entry), 20 (Standards of Performance) and 21 (Complaint Handling Procedure).

Restriction of a gas transporter licence
6. If the application is for a restriction of a licence -

(b) unless there are, at the date of the application, no relevant consumers (within the meaning set out in sub-paragraph (c) below) in relation to the applicant, a description of the applicant's proposed arrangements to ensure compliance with section 10 of the Act (ensuring the connection to all such relevant consumers is maintained).

(c) For the purposes of sub-paragraph (b), a person is a relevant consumer if -

SCHEDULE 4Regulation 7

APPLICATION FEES

COLUMN 1	COLUMN 2
Description of application	Fee payable, �
Gas Supplier 1. Application for licence or extension (not including authorisation to supply gas to domestic premises)	800
2. Application for licence or extension including authorisation to supply gas to domestic premises to which gas is, or is to be, conveyed otherwise than by a gas transporter	800
3. Application for licence including authorisation to supply gas to domestic premises to which gas is, or is to be, conveyed by a gas transporter	1,500
4. Application for extension of a licence which does not include authorisation to supply gas to domestic premises to which gas is conveyed by a gas transporter so as to include such authorisation	600
5. Application for any other extension or restriction	600
Gas shipper - Any application	800
Gas transporter 1. Application for licence with specified area	2,000
2. Application for licence to convey gas only to any pipe-line system operated by another gas transporter	3,000
3. Application for any other extension or restriction	600

EXPLANATORY NOTE

(This note is not part of the Regulations)

These Regulations set out the information, and other documents that are required to be submitted with applications for gas transporter, gas shipper and gas supplier licences (and for extensions or restrictions of supply and transporter licences) under the Gas Act 1986, as amended by the Utilities Act 2000. They specify the form and manner of such applications. These regulations also set out the manner in which applications are to be published.

These Regulations come into force on 1st October 2001. Regulation 1 provides for the citation, commencement, transitional and savings provisions, and regulation 3 provides for general interpretation.

Regulation 4 deals with the manner of applications.

Regulation 5 concerns the form of applications, and incorporates Schedules 1 and 2 that specify their form, and the information and documents to accompany them.

Regulation 6 specifies the additional information and documents to accompany applications. It incorporates Schedule 3, which covers, respectively, applications for:

- gas supplier licences, at Part I;

- gas shipper licences, at Part II; and

- gas transporter licences, at Part III.

Regulation 7 incorporates Schedule 4, which specifies the fees payable in respect of applications.

Regulation 8 provides for the notice period and publication requirements for applications.

Notes:

[1] The Gas and Electricity Markets Authority was established under section 1(1) of the Utilities Act 2000 (c. 27).back

[2] This subsection inserted by section 74(7) of the Utilities Act 2000.back

[3] 1986 c. 44 back

[4] S.I. 1996/476.back

[5] An application may not be made on the same form in respect of more than one of these types of licence.back

[6] An application may not be made for the extension of a licence which authorises only the supply to premises of gas which has been conveyed to the premises otherwise than by a public gas transporter.back

[7] For example, natural gas, liquid petroleum gas, coal bed methane. Note that in certain circumstances a licence is not required in respect of the conveyance or supply of propane or butane.back

[8] 1985 c. 6.back

[9] In this sub-paragraph, references to shares -
(i) in relation to an applicant with a share capital, are to allotted shares;
(ii) in relation to an applicant with capital but no share capital, are to rights to share in the capital of the applicant;
(iii) in relation to an applicant without capital, are to interests -
(aa) conferring any right to share in the profits or liability to contribute to the losses of the applicant; or
(bb) giving rise to an obligation to contribute to the debts or expenses of the applicant in the event of a winding up.back

[10] 1989 c. 29.back

[11] In this sub-paragraph "related person" means -
(i) in relation to an applicant who is an undertaking within the meaning of section 259 of the Companies Act 1985 ("the principal undertaking"), a parent or subsidiary undertaking of the principal undertaking or a subsidiary undertaking of a parent undertaking of the principal undertaking, in each case within the meaning of section 258 of that Act; and
(ii) in relation to any applicant (including such an undertaking), a connected person of the applicant within the meaning of section 286 of the Taxation of Chargeable Gains Act 1992 (c. 12).back

[12] In paragraphs 1 to 4 and 8 below, if the application is for an extension or restriction of a licence, information and documents need only be given in so far as, in any material respect, they differ from or add to the most recent information or documents which were provided in relation to the same requirement -
(i) with an application made by the applicant in accordance with these Regulations; or
(ii) subsequent to such an application in pursuance of a condition of the applicant's licence.back