The Gas Act 1986 (Exemption) Order 2005

Explanatory Note

(This note is not part of the Order)

Section 6A of the Gas Act 1986 (“the Act”) provides for the granting by order of exemptions from the prohibition contained in section 5(1)(a) of the Act on conveying gas through pipes to any premises, or to a pipe-line system operated by a licensed gas transporter or the prohibition, contained in section 5(1)(b) of the Act on supplying to premises gas which has been conveyed to those premises through pipes.

Article 3 grants an exemption from section 5(1)(a) of the Act to a person in respect of the conveyance of gas from an LNG import facility to a pipe-line system operated by a licensed gas transporter. The exemption is subject to the condition set out in article 4 whereby the Secretary of State may direct the operator to provide information to the licensed gas transporter about the calorific value and quantity of gas expected to be conveyed or which could be conveyed pursuant to the exemption to the pipe-line system operated by the gas transporter. It is also subject to the conditions set out in articles 5 and 6 relating to the provision of information to the Secretary of State and the Gas and Electricity Markets Authority and the condition in article 7 relating to the provision of information to the Secretary of State, the relevant gas transporter, the Gas and Electricity Markets Authority or the Health and Safety Executive.

Article 8 grants an exemption from section 5(1)(a) of the Act to any person who conveys gas from an LNG import facility to associated premises.

Article 9(1) grants an exemption from section 5(1)(a) of the Act to any person who conveys gas from a pipe-line system operated by a licensed gas transporter or a ship to an LNG import facility or to associated premises.

Article 9(2) grants an exemption from section 5(1)(b) of the Act to any person who supplies gas to an LNG import facility or to associated premises.

This Order applies to Great Britain.

A regulatory impact assessment is available and can be obtained from the Energy Markets Unit, Department of Trade and Industry, 1 Victoria Street, London SW1H 0ET. Copies have been placed in the libraries of both Houses of Parliament.