Gas Act 1995

18 (1) For subsection (1) of section 21 of the 1986 Act (increase of capacity etc. of pipe-lines) there shall be substituted the following subsection—

“(1) If in the case of a pipe-line system operated by a public gas transporter it appears to the Director, on the application of a person other than the transporter, that the system can and should be modified—

(a) by installing in it a junction through which another pipe-line may be connected to the system; or

(b) by modifying apparatus and works associated with a high pressure pipe-line so as to increase the capacity of the pipe-line,

then, subject to subsection (3) below, the Director may, after giving to the transporter an opportunity of being heard about the matter and giving to the Health and Safety Executive notice of his proposed directions, give directions to the transporter in accordance with subsection (2) below in consequence of the application.”

(2) In subsection (2) of that section—

(a) for the words “public gas supplier” there shall be substituted the words “public gas transporter”;

(b) for the words “for the purpose of defraying the cost of” there shall be substituted the words “by way of consideration for”; and

(c) for the words “the supplier”, in both places where they occur, there shall be substituted the words “the transporter”.

(3) In subsection (3) of that section, for the word “pipe-line”, in each place where it occurs, there shall be substituted the words “pipe-line system”.

(4) After subsection (3) of that section there shall be inserted the following subsection—

“(3A) In giving any directions under this section, the Director shall apply the principle that, in so far as the following, namely—

(a) the cost of carrying out the modifications; and

(b) a reasonable element of profit,

will not be recoverable by the public gas transporter from elsewhere, the transporter should be entitled to receive them by way of consideration for carrying out the modifications.”

(5) After subsection (4) of that section there shall be inserted the following subsection—

“(5) In this section—

• “high pressure pipe-line” means any pipe-line which has a design operating pressure exceeding 7 bar gauge;

• “pipe-line” has the same meaning as in the [1962 c. 58.] Pipe-lines Act 1962.”