18.—(1) Section 7 of the Gas Act 1986 (licensing of gas transporters) M1 is amended as follows.
(2) In subsection (2), for “subsection (3)” substitute “ subsections (3) and (3A) ”.
(3) After subsection (3) insert—
“(3A) A licence authorising the conveyance of gas through pipes to any premises must not be granted under this section to a person who is a gas producer unless it is a condition of the licence that the person must not convey gas through pipes to 100,000 or more sets of premises.”.
(4) In subsection (4), for “The” substitute “ Subject to subsection (3A), the ”.
(5) In subsection (10), before paragraph (a) insert—
“(za)“gas producer” means a person who—
(i)gets natural gas from its natural condition in strata otherwise than as an unintended consequence of the storage of gas, and requires a licence under section 3 of the Petroleum Act 1998 (licences to search and bore for and get petroleum) to do so or would require such a licence if getting the gas in Great Britain; or
(ii)produces any other gas, including in particular biomethane, which is suitable for conveyance through pipes to premises in accordance with a licence under section 7;”.
Marginal Citations
M1Section 7 was amended by the Gas Act 1995 (c. 45), section 5; and the Energy Act 2004, section 149(1) and (5). Other amendments have been made that are not relevant for these purposes.