Part I Gas Supply

Supplemental

45 Offences by bodies corporate.

(1)

Where a body corporate is guilty of an offence under this Part and that offence is proved to have been committed with the consent or connivance of, or to be attributable to any neglect on the part of, any director, manager, secretary or other similar officer of the body corporate or any person who was purporting to act in any such capacity he, as well as the body corporate, shall be guilty of that offence and shall be liable to be proceeded against and punished accordingly.

(2)

Where the affairs of a body corporate are managed by its members, subsection (1) above shall apply in relation to the acts and defaults of a member in connection with his functions of management as if he were a director of the body corporate.

F146 Service of notices etc.

(1)

F2. . .Any notice or other document required or authorised to be given, delivered or served under this Part or regulations made under this Part may be given, delivered or served either—

(a)

by delivering it to the person to whom it is to be given or delivered or on whom it is to be served;

(b)

by leaving it at the usual or last known place of abode of that person;

(c)

by sending it in a prepaid letter addressed to that person at his usual or last known place of abode;

(d)

in the case of a body corporate, by delivering it to the secretary or clerk of the body at their registered or principal office, or sending it in a prepaid letter addressed to the secretary or clerk of the body at that office; or

(e)

if it is not practicable after reasonable inquiry to ascertain the name or address of a person to whom it should be given or delivered, or on whom it should be served, as being a person having any interest in premises, by addressing it to him by the description of the person having that interest in the premises (naming them) to which it relates and delivering it to some responsible person on the premises, or affixing it or a copy of it to some conspicuous part of the premises.

F3(1A)

In the case of a notice or other document required or authorised to be given, delivered or served under this Part, or regulations made under this Part, by the Authority or the Secretary of State, that notice or document may also be given, delivered or served by electronic means if the conditions in subsection (1B) are met.

(1B)

The conditions in this subsection are that—

(a)

the person to whom the notice or other document is to be given or delivered or on whom it is to be served has indicated to the Authority or the Secretary of State (as the case may be) the person’s willingness to receive by electronic means notices or documents of that description (and has not withdrawn that indication); and

(b)

the notice or document is sent to the number or address most recently specified by the person for that purpose.

(1C)

An indication for the purposes of subsection (1B)—

(a)

must be given in such manner and include such information as the Authority or the Secretary of State (as the case may be) directs; and

(b)

may be withdrawn by an indication given in such manner as the Authority or the Secretary of State (as the case may be) directs.

(1D)

Withdrawal of an indication given for the purposes of subsection (1B) takes effect at the beginning of the fifth working day after the day on which the Authority or the Secretary of State (as the case may be) receives the indication withdrawing it.

(1E)

A notice or other document which is given, delivered or served in accordance with subsection (1A) is to be treated as having been given, delivered or served on the next working day after the day on which it is sent.

F4(2)

Without prejudice to subsection (1) F5or (1A) above, where this subsection applies in relation to a F6gas transporter or gas supplier, any notice to be given to or served on the transporter or supplier under—

(a)

any condition of his licence;

(b)

any provision of Schedule 2B to this Act; or

(c)

in the case of a transporter, section 10 above,

may be given or served by delivering it at, or sending it in a prepaid letter to, an appropriate office of the transporter or supplier.

(3)

Subsection (2) above applies in relation to a F6gas transporter if he divides F7any authorised area of his into such areas as he thinks fit and—

(a)

in the case of each area, fixes offices of his which are to be appropriate offices in relation to notices relating to matters arising in that area; and

(b)

publishes in each area, in such manner as he considers adequate, the addresses of the offices fixed by him for that area.

(4)

Subsection (2) above applies in relation to a gas supplier if he divides the premises specified in his licence into such areas as he thinks fit and—

(a)

in the case of each area, fixes offices of his which are to be appropriate offices in relation to notices relating to matters arising in that area;

(b)

publishes in each area, in such manner as he considers adequate, the addresses of the offices fixed by him for that area; and

(c)

endorses on every demand note for gas charges payable to him the addresses of the offices fixed for the area in question.

F8(5)

In this section—

(a)

references to premises specified in a licence include references to premises of a description, or situated in an area, so specified;

(b)

“working day” means any day other than—

(i)

Saturday or Sunday;

(ii)

Christmas Day or Good Friday;

(iii)

a day which is a bank holiday in England and Wales or Scotland under the Banking and Financial Dealings Act 1971.

47 Provisions as to regulations.

(1)

Regulations made under any provision of this Part may provide for the determination of questions of fact or of law which may arise in giving effect to the regulations and for regulating (otherwise than in relation to any court proceedings) any matters relating to the practice and procedure to be followed in connection with the determination of such questions, including provision—

(a)

as to the mode of proof of any matter;

(b)

as to parties and their representation;

(c)

for the right to appear F9before and be heard by the Secretary of State, the Director and other authorities; and

(d)

as to awarding costs F10or expenses of proceedings for the determination of such questions, determining the amount thereof and the enforcement of awards thereof.

(2)

Regulations made under any provision of this Part which prescribe a period within which things are to be done may provide for extending the period so prescribed.

(3)

Regulations made under any provision of this Part may—

F11(aa)

provide for anything falling to be determined under the regulations to be determined—

(i)

by the Director or by such other person as may be prescribed by the regulations; and

(ii)

in accordance with such procedure and by reference to such matters and to the opinion of such persons as may be so prescribed;

(a)

make different provision for different areas or in relation to different cases or different circumstances; and

(b)

provide for such exceptions, limitations and conditions, and make such supplementary, incidental or transitional provision, as the Secretary of State F12or, as the case may be, the Director considers necessary or expedient.

(4)

Regulations made under any provision of this Part may provide that any person contravening the regulations shall be guilty of an offence and liable on summary conviction to a fine not exceeding level 5 on the standard scale.

F13(5)

Proceedings for an offence under any regulations made under any provision of this Part shall not in England and Wales be instituted except by or with the consent of the Secretary of State F14, the Director or the Director of Public Prosecutions.

(6)

In any proceedings against any person for an offence under any regulations made under any provision of this Part, it shall be a defence for that person to show—

(a)

that he was prevented from complying with the regulations by circumstances not within his control; or

(b)

that circumstances existed by reason of which compliance with the regulations would or might have involved danger to the public and that he took all such steps as it was reasonable for him to take both to prevent the circumstances from occurring and to prevent them from having that effect.

F15(7)

Any power to make regulations conferred by this Part on the Secretary of State or the Authority shall be exercisable by statutory instrument.

(8)

Any statutory instrument containing regulations under this Part made by the Secretary of State shall, except as otherwise provided by this Act, be subject to annulment in pursuance of a resolution of either House of Parliament.

48 Interpretation of Part I and savings.

(1)

In this Part, unless the context otherwise requires—

F16“the Agency” means the Agency for the Cooperation of Energy Regulators established under the Agency Regulation;

F17“the Agency Regulation” means Regulation (EU) 2019/942 of the European Parliament and of the Council of 5 June 2019 establishing a European Union Agency for the Cooperation of Energy Regulators (recast), and “predecessor”, in relation to that Regulation, means Regulation (EC) 713/2009 of the European Parliament and of the Council of 13 July 2009 establishing an Agency for the Cooperation of Energy Regulators;

F16“associated undertaking”, in relation to a person (“person A”), means a person who—

(a)

has control of person A; or

(b)

is under the control of a person who controls person A,

and sections 450 and 451(1) to (3) of the Corporation Tax Act 2010 (meaning of “control”) apply, with any necessary modifications, for the purposes of this definition as they apply for the purposes of Part 10 of that Act;

“authorised area”, in relation to a F18gas transporter, has the meaning given by section 7(2) above;

F19“authorised supplier” means a person authorised by a licence or exemption to supply to any premises gas which has been conveyed to those premises through pipes;

F20“authorised transporter” means a person authorised by a licence or exemption to convey gas through pipes to any premises or to a pipe-line system operated by a gas transporter;

“calorific value” has the meaning given by section 12(2) above;

F21“ the CMA ” means the Competition and Markets Authority;

F22. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

“declared calorific value” has the meaning given by section 12(2) above;

F23...

F24...

F25“designated regulatory function” means a function of the Authority or the Northern Ireland Authority conferred by—

(a)

a provision of F26assimilated law, or

(b)

a condition in a licence under section 7, 7ZA or 7A or Article 8 of the Gas (Northern Ireland) Order 1996 (S.I. 1996/275 (N.I. 2)), as that condition is modified from time to time on or after IP completion day,

where that function was, immediately before IP completion day, one of its functions as a regulatory authority designated in accordance with Article 39 of the Gas Directive;

F16“distribution exemption holder” means a person who—

(a)

is carrying on an activity such as is mentioned in section 5(1)(a), the whole or part of which is also an activity of distribution within the meaning given by Article 2(5) of the Gas Directive; and

(b)

is authorised to carry on that activity by an exemption;

“distribution main”, in relation to a F18gas transporter, means any main of the F27transporter through which the F27transporter is for the time being distributing gas and which is not being used only for the purpose of conveying gas in bulk;

F28. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F16“exempt distribution system” means a distribution system operated or controlled by a distribution exemption holder who is covered by an exemption granted to it in relation to that system;

F29“exemption” means an exemption under section 6A;

“gas” means—

(a)

any substance in a gaseous state which consists wholly or mainly of—

  1. (i)

    methane, ethane, propane, butane, hydrogen or carbon monoxide;

  2. (ii)

    a mixture of two or more of those gases; or

  3. (iii)

    a combustible mixture of one or more of those gases and air; and

(b)

any other substance in a gaseous state which is gaseous at a temperature of 15°C and a pressure of 1013·25 millibars and is specified in an order made by the Secretary of State;

F30“the Gas Directive” means Directive 2009/73/EC of the European Parliament and of the Council of 13 July 2009 concerning common rules for the internal market in natural gas and repealing Directive 2003/55/EC, as amended by the 2019 Amending Directive;

“gas fittings” means gas pipes and meters, and fittings, apparatus and appliances designed for use by consumers of gas for heating, lighting, motive power and other purposes for which gas can be used;

F31“gas interconnector” has the meaning given by section 5(8);

F16“the Gas Regulation” means Regulation 2009/715/EC of the European Parliament and of the Council of 13 July 2009 on conditions for access to the natural gas transmission networks and repealing Regulation 2005/1775/EC, as amended by the 2010 Amending Decision F32, the 2012 Amending Decision and the 2013 Amending Regulation ;

F33“gas supplier” and “gas shipper” have the meanings given by section 7A(11) above;

F16“gas undertaking” has the meaning given by section 8Q;

“holding company” F34has the meaning given by F35section 1159 of the Companies Act 2006;

“information” includes accounts, estimates and returns;

F36“ kilowatt hour” means 3.6 megajoules;

F37“licence” means a licence under section 7F38, 7ZA F39, 7A or 7AB and “licence holder” shall be construed accordingly;

F16“LNG import or export facility” means a facility in Great Britain (including the territorial sea adjacent to Great Britain and the sea in any area designated under section 1(7) of the Continental Shelf Act 1964) for—

(a)

the importation into Great Britain and regasification of liquid gas prior to its conveyance to a pipeline system operated by the holder of a licence under section 7 or section 7ZA, or the liquefaction of gas for the purpose of its export from Great Britain; and

(b)

any activity, including temporary storage of gas or liquid gas, which is necessary for that importation, regasification or liquefaction;

F40. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F16“main commercial conditions” means—

(a)

in the case of a storage facility, such information as would enable a potential applicant for a right to have gas or liquid gas stored in the facility to make a reasonable assessment of the cost of, or the method of calculating the cost of, acquiring that right;

(b)

in the case of an LNG import or export facility, the terms setting out the cost or the method of determining the cost of acquiring the right to have gas or liquid gas treated in the facility;

(c)

the other significant terms on which such a right as is mentioned in paragraph (a) or (b) would be granted; and

(d)

such additional information as the Authority may from time to time specify by notice;

“notice” means notice in writing;

F41“Northern Ireland Authority” means the Northern Ireland Authority for Utility Regulation;

F42“officer”, in relation to any person, includes any servant or agent of that person, and any officer or servant of such an agent;

F43“owner”—

(a)

in relation to any premises or other property, includes a lessee;

(b)

in relation to a storage facility or an LNG import or export facility, includes a person occupying or having control of the facility,

and cognate expressions shall be construed accordingly;;

“prescribed” means prescribed by regulations F44made, unless the context otherwise requires, by the Secretary of State;

F45“ providing a smart meter communication service ” has the meaning given in section 5(11) above, and cognate expressions shall be construed accordingly;

F16“relevant producer or supplier” has the meaning given by section 8Q;

F46“F18gas transporter” has the meaning given by section 7(1) above;

F47. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F16“senior officer” means—

(a)

in relation to a company, a director;

(b)

in relation to a partnership, a partner;

(c)

in any other case, a person holding a position equivalent to that of a director or partner;

F48 “service pipe” means a pipe, other than a distribution main of a F18gas transporter, which is used for the purpose of conveying gas from such a main to any premises, and includes part of any such pipe;

F45“ smart meter communication licence ” has the meaning given to that term in section 7AB(1);

“storage”, in relation to gas, means storage in, or in a facility which is connected (directly or indirectly) to, a pipe-line system operated by a F18gas transporter;

F16“storage”, in relation to liquid gas in a storage facility, includes any liquefaction of gas or regasification of liquid gas ancillary to the storage of liquid gas, and “stored”, in relation to liquid gas in a storage facility, shall be construed accordingly;

F16“storage facility” means a facility in Great Britain (including the territorial sea adjacent to Great Britain and the sea in any area designated under section 1(7) of the Continental Shelf Act 1964) for either or both of the following—

(a)

the storage in porous strata, or in cavities in strata, of gas which has been, or will be, conveyed in a pipeline system operated by the holder of a licence under section 7 or 7ZA;

(b)

the storage of liquid gas which, if regasified, would be suitable for conveyance through pipes to premises in accordance with a licence under section 7,

but the reference in paragraph (b) to the storage of liquid gas does not include such temporary storage as is mentioned in the definition of “LNG import or export facility”;;

“subsidiary” F34has the meaning given by section 736 of the Companies Act 1985;

F16“supply exemption holder” means a person who—

(a)

is carrying on the activity mentioned in section 5(1)(b); and

(b)

is authorised to carry on that activity by an exemption;

F16“treatment”, in relation to gas or liquid gas in an LNG import or export facility, includes importation, regasification, liquefaction and temporary storage, and “treat” shall be construed accordingly;

F16“the 2010 Amending Decision” means Commission Decision 2010/685/EU of 10 November 2010 amending Chapter 3 of Annex I to Regulation 2009/715/EC of the European Parliament and of the Council on conditions for access to the natural gas transmission networks;

F49“the 2012 Amending Decision” means Commission Decision 2012/490/EU of 24 August 2012 amending Annex I to Regulation 2009/715/EC of the European Parliament and of the Council on conditions for access to the natural gas transmission networks;

“the 2013 Amending Regulation” means Regulation 2013/347/EU of the European Parliament and of the Council of 17 April 2013 on guidelines for trans-European energy infrastructure and repealing Decision 2006/1364/EC and amending Regulations 2009/713/EC, 2009/714/EC and 2009/715/EC;

F50“the 2019 Amending Directive” means Directive (EU) 2019/692 of the European Parliament and of the Council of 17 April 2019 amending Directive 2009/73/EC concerning common rules for the internal market in natural gas;

F51. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F52. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F53(1ZA)

Until section 75 of the Utilities Act 2000 comes into force the references to an exemption in the definitions in subsection (1) above of “distribution exemption holder”, “exempt distribution system” and “supply exemption holder” to an exemption include an exception under Schedule 2A.

F54(1A)

In this Part any reference to an officer authorised by any person includes, in relation to an officer who is an officer or servant of an agent of that person, an officer who, in accordance with the terms of any written authority given by that person to the agent, is authorised by the agent on behalf of that person.

(2)

In this Part, except in section 18, references to the supply of gas do not include references F55to the supply of gas (directly or indirectly) to a F18gas transporter, gas supplier or gas shipper.

F56(2A)

In relation to any time after 31st December 1999—

(a)

references in this Part to 2,500, 75,000 and 2 million therms shall be construed as references to 73,200, 2,196,000 and 58 million kilowatt hours respectively; and

(b)

other references in this Part to therms, and references in this Part to therms or kilowatt hours, shall be construed as references to kilowatt hours.

(2B)

A person is of pensionable age for the purposes of this Part if—

(a)

he has attained pensionable age (within the meaning given by the rules in paragraph 1 of Schedule 4 to the M1Pensions Act 1995); or

(b)

in the case of a man born before F576th December 1953 , he is the same age as a woman who has attained pensionable age (within the meaning so given).

F58(3)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F58(4)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .