Gas Act 1986

24 Modification references to Monopolies Commission. E+W+S

[F1 (1) The Director may make to the [F2 Competition Commission] a reference which is so framed as to require the Commission to investigate and report on the questions—

(a) whether any matters which relate to—

(i) the carrying on of activities authorised or required by a particular licence, or

(ii) the storage of gas on terms which have been determined by the holder of a particular 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,

and which are specified in the reference operate, or may be expected to operate, against the public interest; and

(b) if so, whether the effects adverse to the public interest which those matters have or may be expected to have could be remedied or prevented by modifications of the relevant conditions, that is to say, the conditions of the licence.

(1A) The Director may make to the [F3 Competition Commission] a reference which is so framed as to require the Commission to investigate and report on the questions—

(a) whether any matters which relate to the carrying on of activities authorised or required by—

(i) licences under section 7 above,

(ii) licences under subsection (1) of section 7A above which incorporate the standard conditions, or

(iii) licences under subsection (2) of that section,

and which are specified in the reference operate, or may be expected to operate, against the public interest; and

(b) if so, whether the effects adverse to the public interest which those matters have or may be expected to have could be remedied or prevented by modifications of the relevant conditions, that is to say, the standard conditions of licences under that section or, as the case may be, that subsection.]

(2) The Director may, at any time, by notice given to the [F4 Competition Commission]vary a reference under this section by adding to the matters specified in the reference or by excluding from the reference some or all of the matters so specified; and on receipt of such notice the Commission shall give effect to the variation.

(3) The Director may specify in a reference under this section, or a variation of such a reference, for the purpose of assisting the [F5 Competition Commission]in carrying out the investigation on the reference—

(a) any effects adverse to the public interest which, in his opinion, the matters specified in the reference or variation have or may be expected to have; and

(b) any modifications of the [F6 relevant conditions] by which, in his opinion, those effects could be remedied or prevented.

(4) As soon as practicable after making a reference under this section or a variation of such a reference, the Director—

(a) shall send a copy of the reference or variation to [F7 the holder of the licence or, as the case may be, the relevant licence holders] and to the Council; and

(b) publish particulars of the reference or variation in such manner as he considers appropriate for the purpose of bringing the reference or variation to the attention of persons likely to be affected by it.

[F8 (4A) The Director shall also send a copy of a reference under subsection (1A) above, or a variation of such a reference, to the Secretary of State; and if, before the end of the period of 28 days beginning with the day on which he receives the copy of the reference or variation, the Secretary of State directs the [F9 Competition Commission]not to proceed with the reference or, as the case may require, not to give effect to the variation, the Commission shall comply with the direction.]

(5) It shall be the duty of the Director, for the purpose of assisting the [F10 Competition Commission]in carrying out an investigation on a reference under this section, 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 which is either requested by the Commission for that purpose or 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, for the purpose of carrying out any such investigation, shall take account of any information given to them for that purpose under this subsection.

(6) In determining for the purposes of this section whether any particular matter operates, or may be expected to operate, against the public interest, the [F11 Competition Commission]shall have regard to the matters as respects which duties are imposed on the Secretary of State and the Director by [F12 sections 4 and 4A(1) and (2)] above.

[F13 (7) The provisions mentioned in subsection (7A) are to apply in relation to references under this section as if—

(a) the functions of the Competition Commission in relation to those references were functions under the M1 Fair Trading Act 1973;

(b) the expression “merger reference” included a reference under this section;

(c) in section 70 of the M2 Fair Trading Act 1973—

(i) references to the Secretary of State were references to the Director, and

(ii) the reference to three months were a reference to six months.

(7A) The provisions are—

(a) sections 70 (time limit for report on merger) and 85 (attendance of witnesses and production of documents) of the Fair Trading Act 1973;

(b) Part II of Schedule 7 to the Competition Act 1998 (performance of the Competition Commission’s general functions); and

(c) section 24 of the M3 Competition Act 1980 (modification of provisions about performance of such functions).]

[F14 (8) In this section and sections 25 and 26 below—

• “relevant conditions” has the meaning given by subsection (1) or (1A) above;

• “relevant licence holder”—

  (a)

  in relation to a reference under subsection (1A) above, means the holder of a licence to which the reference relates;

  (b)

  in relation to modifications of relevant conditions within the meaning given by that subsection, means the holder of a licence which incorporates the conditions.]

Textual Amendments

F1 S. 24(1)(1A) substituted for s. 24(1) (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 22(1); S.I. 1996/218, art. 2

F2 Words in s. 24(1) substituted (1.4.1999) by S.I. 1999/506, art. 20(a)

F3 Words in s. 24(1A) substituted (1.4.1999) by S.I. 1999/506, art. 20(b)

F4 Words in s. 24(2) substituted (1.4.1999) by S.I. 1999/506, art. 20(b)

F5 Words in s. 24(3) substituted (1.4.1999) by S.I. 1999/506, art. 20(b)

F6 Words in s. 24(3) substituted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 22(2); S.I. 1996/218, art. 2

F7 Words in s. 24(4) substituted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 22(3); S.I. 1996/218, art. 2

F8 S. 24(4A) inserted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 22(4); S.I. 1996/218, art. 2

F9 Words in s. 24(4A) substituted (1.4.1999) by S.I. 1999/506, art. 20(b)

F10 Words in s. 24(5) substituted (1.4.1999) by S.I. 1999/506, art. 20(b)

F11 Words in s. 24(6) substituted (1.4.1999) by S.I. 1999/506, art. 20(b)

F12 Words in s. 24(6) substituted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 22(5); S.I. 1996/218, art. 2

F13 S. 24(7)(7A) substituted for s. 24(7) (1.4.1999) by 1998 c. 41, ss. 66(5), Sch. 10 Pt. IV para. 10(2) (with s. 73); S.I. 1999/505, art. 2, Sch.

F14 S. 24(8) inserted (1.3.1996) by 1995 c. 45, s. 10(1), Sch. 3 para. 22(6); S.I. 1996/218, art. 2

Marginal Citations

M1 1973 c. 41.

M2 1973 c. 41.

M3 1980 c. 21.