Energy Act 2023

134 Grant, extension or restriction of gas transporter licence by Secretary of State

(1) The Secretary of State may exercise the power under section 7(2) of the Gas Act 1986 (grant of gas transporter licences) so as to grant a gas transporter licence to a designated person, subject to subsection (2).

(2) The Secretary of State may only grant a gas transporter licence which authorises the conveyance of hydrogen through pipes for the purposes of the person’s designated project.

(3) The Secretary of State may exercise the power under section 7(4) of the Gas Act 1986 (direction to extend licence) so as to extend a gas transporter licence where—

(a) the licence is held by a designated person, and

(b) the extension authorises the conveyance of hydrogen through pipes for the purposes of the person’s designated project.

(4) The Secretary of State may exercise the power under section 7(4A) of the Gas Act 1986 (direction to restrict licence) so as to restrict a gas transporter licence where—

(a) the licence is or was held by a designated person, and

(b) the restriction is in connection with the revocation of the person’s designation in relation to a hydrogen pipeline project.

(5) In its application for the purposes of subsections (1), (3) and (4), the Gas Act 1986 has effect as if—

(a) in the following provisions, references to the GEMA were to the Secretary of State—

(i) section 7(5) and (6)(a);

(ii) section 7B(9);

(iii) section 8(3), (4) and (5)(a);

(b) in sections 7(6)(b) and 8(5)(b), references to the Secretary of State were to the GEMA;

(c) in section 7B(4)(c), the reference to the GEMA included a reference to the Secretary of State, but only for the purpose of enabling the inclusion of conditions requiring the rendering of a payment on the grant of a licence;

(d) section 7B(9) also required a copy of the licence to be sent to the GEMA.

(6) When granting or extending a gas transporter licence by virtue of this section, the Secretary of State must have regard to—

(a) costs, expenditure or liabilities of any description that the designated person may reasonably be expected to incur in carrying out its activities;

(b) the need to secure that the designated person is able to finance its activities;

(c) the need to secure that the designated person has appropriate incentives in relation to the carrying on of its activities;

(d) such other matters as the Secretary of State considers appropriate.

(7) References in subsection (6) to a designated person’s activities are to the person’s activities for the purposes of—

(a) the designated project to which the grant or extension relates, and

(b) in the case of an extension, any other designated project already authorised by the person’s gas transporter licence.

(8) A gas transporter licence granted, extended or restricted by the Secretary of State by virtue of this section has effect for all purposes as if it had been granted, extended or restricted by the GEMA.