S. 7A inserted (1.3.1996) by 1995 c. 45, s. 6; S.I. 1996/218, art. 2

Words in S. 7A(2)(5) substituted (1.10.2001) by 2000 c. 27, s. 108, Sch. 6 Pt. I para. 2(1); S.I. 2001/3266, arts. 1(2), 2, Sch. (subject to transitional provisions in arts. 3-20)

Words in s. 7A(3) inserted (1.12.2004) by Energy Act 2004 (c. 20), ss. 149(7), 198(2); S.I. 2004/2575, art. 2(2), Sch. 2

S. 7A applied (with modifications) (8.11.1995) by 1995 c. 45, s. 17(1), Sch. 5 Pt. II para. 15(1)(4); S.I. 1996.218, art. 2

S. 7A applied (with modifications) (1.3.1996) by S.I. 1996/399, art. 2(2)

S. 7A(1) extended (8.11.1995) by 1995 c. 45, s. 17(1), Sch. 5 Pt. I para. 1(1)(b), Pt. II para. 16(1)(b); S.I. 1996/218, art. 2

S. 7A(1)(2) amended (1.10.2001) by 2000 c. 27, s. 81(1); S.I. 2001/3266, arts. 1(2), 2, Sch. (subject to transitional provisions in arts. 3-20)

S. 7A(2) extended (8.11.1995) by 1995 c. 45, s. 17(1), Sch. 5 Pt. I para. 1(1)(c), Pt. II para. 16(1)(c); S.I. 1996/218, art. 2

http://www.legislation.gov.uk/ukpga/1986/44/section/7AGas Act 1986Gas Act 19861986-07-25texttext/xmlenStatute Law Database2024-10-30Expert Participation2024-10-01 Part I Gas Supply Licensing of activities relating to gas
7A Licensing of gas suppliers and gas shippers.(1)

Subject to subsection (3) below, the Director may grant a licence authorising any person to do either or both of the following, namely—

(a)

to supply, to any premises specified in the licence, gas which has been conveyed through pipes to those premises; and

(b)

to supply, to any premises at a rate which, at the time when he undertakes to give the supply, he reasonably expects to exceed 2,500 therms a year, gas which has been conveyed through pipes to those premises.

(2)

Subject to subsection (3) below, the Director may grant a licence authorising any person to arrange with any gas transporter for gas to be introduced into, conveyed by means of or taken out of a pipe-line system operated by that transporter, either generally or for purposes connected with the supply of gas to any premises specified in the licence.

(3)

A licence shall not be granted under this section to a person who is the holder of a licence under section 7 or 7ZA above.

(4)

The Director may, with the consent of the licence holder, direct that any licence under this section shall have effect—

(a)

as if any premises specified in the direction were specified in the licence; or

(b)

in the case of a licence under subsection (1)(b) above, as if it were also a licence under subsection (1)(a) above and any premises specified in the direction were specified in the licence,

and references in this Part to, or to the grant of, an extension under this section, or an extension of such a licence, shall be construed as references to, or to the giving of, such a direction.

(5)

Subsection (4) above shall not apply in relation to a licence under subsection (1) above which authorises only the supply to premises of gas which has been conveyed to the premises otherwise than by a gas transporter.

(6)

The Director may, with the consent of the licence holder, direct that any licence under this section shall have effect as if any premises specified in the direction were not specified in the licence; and references in this Part to, or to the grant of, a restriction under this section, or a restriction of such a licence, shall be construed as references to, or to the giving of, such a direction.

(7)

In this section references to premises specified in a licence or direction include references to premises of a description, or situated in an area, so specified.

(8)

The Director shall not, in any licence under subsection (1) above, or in any extension or restriction of such a licence, specify any premises by description or area if he is of the opinion that the description or area has been so framed as—

(a)

in the case of a licence or extension, artificially to exclude from the licence or extension; or

(b)

in the case of a restriction, artificially to include in the restriction,

premises likely to be owned or occupied by persons who are chronically sick, disabled or of pensionable age, or who are likely to default in the payment of charges.

(9)

If the holder of a licence under subsection (1) above applies to the Director for a restriction of the licence, or for the revocation of the licence in accordance with any term contained in it, the Director shall, subject to subsection (8) above, accede to the application if he is satisfied that such arrangements have been made as—

(a)

will secure continuity of supply for all relevant consumers; and

(b)

in the case of each such consumer who is supplied with gas in pursuance of a contract, will secure such continuity on the same terms as nearly as may be as the terms of the contract.

(10)

A person is a relevant consumer for the purposes of subsection (9) above if—

(a)

immediately before the restriction or revocation takes effect, he is being supplied with gas by the holder of the licence; and

(b)

in the case of a restriction, his premises are excluded from the licence by the restriction;

and in that subsection “contract” does not include any contract which, by virtue of paragraph 8 of Schedule 2B to this Act, is deemed to have been made.

(11)

In this Part “gas supplier” and “gas shipper” mean respectively the holder of a licence under subsection (1) above, and the holder of a licence under subsection (2) above, except (in either case) where the holder is acting otherwise than for purposes connected with the carrying on of activities authorised by the licence.

(12)

Any reference in this Part (however expressed) to activities authorised by a licence under subsection (1) above shall be construed without regard to any exception contained in Schedule 2A to this Act.

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<note ukl:Name="Commentary" ukl:Type="F" class="commentary F" eId="c14412581" marker="F1">
<p>
S. 7A inserted (1.3.1996) by
<ref eId="c00361" href="http://www.legislation.gov.uk/id/ukpga/1995/45">1995 c. 45</ref>
,
<ref eId="c00362" class="subref operative" href="http://www.legislation.gov.uk/id/ukpga/1995/45/section/6">s. 6</ref>
;
<ref eId="c00363" href="http://www.legislation.gov.uk/id/uksi/1996/218">S.I. 1996/218</ref>
,
<ref eId="c00364" class="subref operative" href="http://www.legislation.gov.uk/id/uksi/1996/218/article/2">art. 2</ref>
</p>
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<note ukl:Name="Commentary" ukl:Type="F" class="commentary F" eId="c14412641" marker="F2">
<p>
Words in S. 7A(2)(5) substituted (1.10.2001) by
<ref eId="c00396" href="http://www.legislation.gov.uk/id/ukpga/2000/27">2000 c. 27</ref>
,
<ref eId="c00397" class="subref" href="http://www.legislation.gov.uk/id/ukpga/2000/27/section/108">s. 108</ref>
,
<ref eId="c00398" class="subref operative" href="http://www.legislation.gov.uk/id/ukpga/2000/27/schedule/6/part/I/paragraph/2/1">Sch. 6 Pt. I para. 2(1)</ref>
;
<ref eId="c00399" href="http://www.legislation.gov.uk/id/uksi/2001/3266">S.I. 2001/3266</ref>
,
<ref eId="c00400" class="subref" href="http://www.legislation.gov.uk/id/uksi/2001/3266/article/1/2">arts. 1(2)</ref>
,
<ref eId="c00401" class="subref" href="http://www.legislation.gov.uk/id/uksi/2001/3266/article/2">2</ref>
,
<ref eId="c00402" class="subref operative" href="http://www.legislation.gov.uk/id/uksi/2001/3266/schedule">Sch.</ref>
(subject to transitional provisions in
<rref eId="c00403" class="subref" from="http://www.legislation.gov.uk/id/uksi/2001/3266/article/3" upTo="http://www.legislation.gov.uk/id/uksi/2001/3266/article/20" ukl:CitationRef="c00399">arts. 3-20</rref>
)
</p>
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<note ukl:Name="Commentary" ukl:Type="F" class="commentary F" eId="key-4c9ba2fbec379eebf1e945db69fca957" marker="F3">
<p>
Words in s. 7A(3) inserted (1.12.2004) by
<ref eId="cmx2qin22-00007" href="http://www.legislation.gov.uk/id/ukpga/2004/20">Energy Act 2004 (c. 20)</ref>
,
<ref eId="cmx2qin22-00008" class="subref operative" href="http://www.legislation.gov.uk/id/ukpga/2004/20/section/149/7">ss. 149(7)</ref>
,
<ref eId="cmx2qin22-00009" class="subref" href="http://www.legislation.gov.uk/id/ukpga/2004/20/section/198/2">198(2)</ref>
;
<ref eId="cmx2qin22-00010" href="http://www.legislation.gov.uk/id/uksi/2004/2575">S.I. 2004/2575</ref>
,
<ref eId="cmx2qin22-00011" class="subref" href="http://www.legislation.gov.uk/id/uksi/2004/2575/article/2/2">art. 2(2)</ref>
,
<ref eId="cmx2qin22-00012" class="subref" href="http://www.legislation.gov.uk/id/uksi/2004/2575/schedule/2">Sch. 2</ref>
</p>
</note>
<note ukl:Name="Commentary" ukl:Type="C" class="commentary C" eId="c14412591" marker="C1">
<p>
S. 7A applied (with modifications) (8.11.1995) by
<ref eId="c00366" href="http://www.legislation.gov.uk/id/ukpga/1995/45">1995 c. 45</ref>
,
<ref eId="c00367" class="subref" href="http://www.legislation.gov.uk/id/ukpga/1995/45/section/17/1">s. 17(1)</ref>
,
<ref eId="c00368" class="subref operative" href="http://www.legislation.gov.uk/id/ukpga/1995/45/schedule/5/part/II/paragraph/15/1/4">Sch. 5 Pt. II para. 15(1)(4)</ref>
; S.I. 1996.218, art. 2
</p>
<p>
S. 7A applied (with modifications) (1.3.1996) by
<ref eId="c00371" href="http://www.legislation.gov.uk/id/uksi/1996/399">S.I. 1996/399</ref>
,
<ref eId="c00372" class="subref operative" href="http://www.legislation.gov.uk/id/uksi/1996/399/article/2/2">art. 2(2)</ref>
</p>
</note>
<note ukl:Name="Commentary" ukl:Type="C" class="commentary C" eId="c14412601" marker="C2">
<p>
S. 7A(1) extended (8.11.1995) by
<ref eId="c00374" href="http://www.legislation.gov.uk/id/ukpga/1995/45">1995 c. 45</ref>
,
<ref eId="c00375" class="subref" href="http://www.legislation.gov.uk/id/ukpga/1995/45/section/17/1">s. 17(1)</ref>
,
<ref eId="c00376" class="subref operative" href="http://www.legislation.gov.uk/id/ukpga/1995/45/schedule/5/part/I/paragraph/1/1/b">Sch. 5 Pt. I para. 1(1)(b)</ref>
,
<ref eId="c00377" class="subref" href="http://www.legislation.gov.uk/id/ukpga/1995/45/part/II/paragraph/16/1/b">Pt. II para. 16(1)(b)</ref>
;
<ref eId="c00378" href="http://www.legislation.gov.uk/id/uksi/1996/218">S.I. 1996/218</ref>
,
<ref eId="c00379" class="subref operative" href="http://www.legislation.gov.uk/id/uksi/1996/218/article/2">art. 2</ref>
</p>
</note>
<note ukl:Name="Commentary" ukl:Type="C" class="commentary C" eId="c14412611" marker="C3">
<p>
S. 7A(1)(2) amended (1.10.2001) by
<ref eId="c00381" href="http://www.legislation.gov.uk/id/ukpga/2000/27">2000 c. 27</ref>
,
<ref eId="c00382" class="subref operative" href="http://www.legislation.gov.uk/id/ukpga/2000/27/section/81/1">s. 81(1)</ref>
;
<ref eId="c00383" href="http://www.legislation.gov.uk/id/uksi/2001/3266">S.I. 2001/3266</ref>
,
<ref eId="c00384" class="subref" href="http://www.legislation.gov.uk/id/uksi/2001/3266/article/1/2">arts. 1(2)</ref>
,
<ref eId="c00385" class="subref" href="http://www.legislation.gov.uk/id/uksi/2001/3266/article/2">2</ref>
,
<ref eId="c00386" class="subref operative" href="http://www.legislation.gov.uk/id/uksi/2001/3266/schedule">Sch.</ref>
(subject to transitional provisions in
<rref eId="c00387" class="subref" from="http://www.legislation.gov.uk/id/uksi/2001/3266/article/3" upTo="http://www.legislation.gov.uk/id/uksi/2001/3266/article/20" ukl:CitationRef="c00383">arts. 3-20</rref>
)
</p>
</note>
<note ukl:Name="Commentary" ukl:Type="C" class="commentary C" eId="c14412621" marker="C4">
<p>
S. 7A(2) extended (8.11.1995) by
<ref eId="c00389" href="http://www.legislation.gov.uk/id/ukpga/1995/45">1995 c. 45</ref>
,
<ref eId="c00390" class="subref" href="http://www.legislation.gov.uk/id/ukpga/1995/45/section/17/1">s. 17(1)</ref>
,
<ref eId="c00391" class="subref operative" href="http://www.legislation.gov.uk/id/ukpga/1995/45/schedule/5/part/I/paragraph/1/1/c">Sch. 5 Pt. I para. 1(1)(c)</ref>
,
<ref eId="c00392" class="subref" href="http://www.legislation.gov.uk/id/ukpga/1995/45/part/II/paragraph/16/1/c">Pt. II para. 16(1)(c)</ref>
;
<ref eId="c00393" href="http://www.legislation.gov.uk/id/uksi/1996/218">S.I. 1996/218</ref>
,
<ref eId="c00394" class="subref operative" href="http://www.legislation.gov.uk/id/uksi/1996/218/article/2">art. 2</ref>
</p>
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Licensing of activities relating to gas
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7A
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<heading>
<ins ukl:ChangeId="d29p1094" ukl:CommentaryRef="c14412581"> Licensing of gas suppliers and gas shippers.</ins>
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<ins ukl:ChangeId="d29p1094" ukl:CommentaryRef="c14412581">Subject to subsection (3) below, the Director may grant a licence authorising any person to do either or both of the following, namely—</ins>
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<ins ukl:ChangeId="d29p1094" ukl:CommentaryRef="c14412581">to supply, to any premises at a rate which, at the time when he undertakes to give the supply, he reasonably expects to exceed 2,500 therms a year, gas which has been conveyed through pipes to those premises.</ins>
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<ins ukl:ChangeId="d29p1094" ukl:CommentaryRef="c14412581">Subject to subsection (3) below, the Director may grant a licence authorising any person to arrange with any </ins>
<ins ukl:ChangeId="d29p1094" ukl:CommentaryRef="c14412581">
<ins class="first last" ukl:ChangeId="d29p1129" ukl:CommentaryRef="c14412641">
<noteRef uk:name="commentary" href="#c14412641" class="commentary"/>
gas transporter
</ins>
</ins>
<ins ukl:ChangeId="d29p1094" ukl:CommentaryRef="c14412581"> for gas to be introduced into, conveyed by means of or taken out of a pipe-line system operated by that transporter, either generally or for purposes connected with the supply of gas to any premises specified in the licence.</ins>
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<ins class="first last" ukl:ChangeId="key-4c9ba2fbec379eebf1e945db69fca957-1500453968991" ukl:CommentaryRef="key-4c9ba2fbec379eebf1e945db69fca957">
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or 7ZA
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<intro>
<p>
<ins ukl:ChangeId="d29p1094" ukl:CommentaryRef="c14412581">The Director may, with the consent of the licence holder, direct that any licence under this section shall have effect—</ins>
</p>
</intro>
<level class="para1" eId="section-7A-4-a">
<num>
<ins ukl:ChangeId="d29p1094" ukl:CommentaryRef="c14412581">(a)</ins>
</num>
<content>
<p>
<ins ukl:ChangeId="d29p1094" ukl:CommentaryRef="c14412581">as if any premises specified in the direction were specified in the licence; or</ins>
</p>
</content>
</level>
<level class="para1" eId="section-7A-4-b">
<num>
<ins ukl:ChangeId="d29p1094" ukl:CommentaryRef="c14412581">(b)</ins>
</num>
<content>
<p>
<ins ukl:ChangeId="d29p1094" ukl:CommentaryRef="c14412581">in the case of a licence under subsection (1)(b) above, as if it were also a licence under subsection (1)(a) above and any premises specified in the direction were specified in the licence,</ins>
</p>
</content>
</level>
<wrapUp>
<p>
<ins ukl:ChangeId="d29p1094" ukl:CommentaryRef="c14412581">and references in this Part to, or to the grant of, an extension under this section, or an extension of such a licence, shall be construed as references to, or to the giving of, such a direction.</ins>
</p>
</wrapUp>
</subsection>
<subsection eId="section-7A-5">
<num>
<ins ukl:ChangeId="d29p1094" ukl:CommentaryRef="c14412581">(5)</ins>
</num>
<content>
<p>
<ins ukl:ChangeId="d29p1094" ukl:CommentaryRef="c14412581">Subsection (4) above shall not apply in relation to a licence under subsection (1) above which authorises only the supply to premises of gas which has been conveyed to the premises otherwise than by a </ins>
<ins ukl:ChangeId="d29p1094" ukl:CommentaryRef="c14412581">
<ins class="first last" ukl:ChangeId="d29p1165" ukl:CommentaryRef="c14412641">
<noteRef uk:name="commentary" href="#c14412641" class="commentary"/>
gas transporter
</ins>
</ins>
<ins ukl:ChangeId="d29p1094" ukl:CommentaryRef="c14412581">.</ins>
</p>
</content>
</subsection>
<subsection eId="section-7A-6">
<num>
<ins ukl:ChangeId="d29p1094" ukl:CommentaryRef="c14412581">(6)</ins>
</num>
<content>
<p>
<ins ukl:ChangeId="d29p1094" ukl:CommentaryRef="c14412581">The Director may, with the consent of the licence holder, direct that any licence under this section shall have effect as if any premises specified in the direction were not specified in the licence; and references in this Part to, or to the grant of, a restriction under this section, or a restriction of such a licence, shall be construed as references to, or to the giving of, such a direction.</ins>
</p>
</content>
</subsection>
<subsection eId="section-7A-7">
<num>
<ins ukl:ChangeId="d29p1094" ukl:CommentaryRef="c14412581">(7)</ins>
</num>
<content>
<p>
<ins ukl:ChangeId="d29p1094" ukl:CommentaryRef="c14412581">In this section references to premises specified in a licence or direction include references to premises of a description, or situated in an area, so specified.</ins>
</p>
</content>
</subsection>
<subsection eId="section-7A-8">
<num>
<ins ukl:ChangeId="d29p1094" ukl:CommentaryRef="c14412581">(8)</ins>
</num>
<intro>
<p>
<ins ukl:ChangeId="d29p1094" ukl:CommentaryRef="c14412581">The Director shall not, in any licence under subsection (1) above, or in any extension or restriction of such a licence, specify any premises by description or area if he is of the opinion that the description or area has been so framed as—</ins>
</p>
</intro>
<level class="para1" eId="section-7A-8-a">
<num>
<ins ukl:ChangeId="d29p1094" ukl:CommentaryRef="c14412581">(a)</ins>
</num>
<content>
<p>
<ins ukl:ChangeId="d29p1094" ukl:CommentaryRef="c14412581">in the case of a licence or extension, artificially to exclude from the licence or extension; or</ins>
</p>
</content>
</level>
<level class="para1" eId="section-7A-8-b">
<num>
<ins ukl:ChangeId="d29p1094" ukl:CommentaryRef="c14412581">(b)</ins>
</num>
<content>
<p>
<ins ukl:ChangeId="d29p1094" ukl:CommentaryRef="c14412581">in the case of a restriction, artificially to include in the restriction,</ins>
</p>
</content>
</level>
<wrapUp>
<p>
<ins ukl:ChangeId="d29p1094" ukl:CommentaryRef="c14412581">premises likely to be owned or occupied by persons who are chronically sick, disabled or of pensionable age, or who are likely to default in the payment of charges.</ins>
</p>
</wrapUp>
</subsection>
<subsection eId="section-7A-9">
<num>
<ins ukl:ChangeId="d29p1094" ukl:CommentaryRef="c14412581">(9)</ins>
</num>
<intro>
<p>
<ins ukl:ChangeId="d29p1094" ukl:CommentaryRef="c14412581">If the holder of a licence under subsection (1) above applies to the Director for a restriction of the licence, or for the revocation of the licence in accordance with any term contained in it, the Director shall, subject to subsection (8) above, accede to the application if he is satisfied that such arrangements have been made as—</ins>
</p>
</intro>
<level class="para1" eId="section-7A-9-a">
<num>
<ins ukl:ChangeId="d29p1094" ukl:CommentaryRef="c14412581">(a)</ins>
</num>
<content>
<p>
<ins ukl:ChangeId="d29p1094" ukl:CommentaryRef="c14412581">will secure continuity of supply for all relevant consumers; and</ins>
</p>
</content>
</level>
<level class="para1" eId="section-7A-9-b">
<num>
<ins ukl:ChangeId="d29p1094" ukl:CommentaryRef="c14412581">(b)</ins>
</num>
<content>
<p>
<ins ukl:ChangeId="d29p1094" ukl:CommentaryRef="c14412581">in the case of each such consumer who is supplied with gas in pursuance of a contract, will secure such continuity on the same terms as nearly as may be as the terms of the contract.</ins>
</p>
</content>
</level>
</subsection>
<subsection eId="section-7A-10">
<num>
<ins ukl:ChangeId="d29p1094" ukl:CommentaryRef="c14412581">(10)</ins>
</num>
<intro>
<p>
<ins ukl:ChangeId="d29p1094" ukl:CommentaryRef="c14412581">A person is a relevant consumer for the purposes of subsection (9) above if—</ins>
</p>
</intro>
<level class="para1" eId="section-7A-10-a">
<num>
<ins ukl:ChangeId="d29p1094" ukl:CommentaryRef="c14412581">(a)</ins>
</num>
<content>
<p>
<ins ukl:ChangeId="d29p1094" ukl:CommentaryRef="c14412581">immediately before the restriction or revocation takes effect, he is being supplied with gas by the holder of the licence; and</ins>
</p>
</content>
</level>
<level class="para1" eId="section-7A-10-b">
<num>
<ins ukl:ChangeId="d29p1094" ukl:CommentaryRef="c14412581">(b)</ins>
</num>
<content>
<p>
<ins ukl:ChangeId="d29p1094" ukl:CommentaryRef="c14412581">in the case of a restriction, his premises are excluded from the licence by the restriction;</ins>
</p>
</content>
</level>
<wrapUp>
<p>
<ins ukl:ChangeId="d29p1094" ukl:CommentaryRef="c14412581">and in that subsection “</ins>
<term refersTo="#term-contract" eId="term-contract">
<ins ukl:ChangeId="d29p1094" ukl:CommentaryRef="c14412581">contract</ins>
</term>
<ins ukl:ChangeId="d29p1094" ukl:CommentaryRef="c14412581">” does not include any contract which, by virtue of paragraph 8 of Schedule 2B to this Act, is deemed to have been made.</ins>
</p>
</wrapUp>
</subsection>
<subsection eId="section-7A-11">
<num>
<ins ukl:ChangeId="d29p1094" ukl:CommentaryRef="c14412581">(11)</ins>
</num>
<content>
<p>
<ins ukl:ChangeId="d29p1094" ukl:CommentaryRef="c14412581">In this Part “</ins>
<term refersTo="#term-gas-supplier" eId="term-gas-supplier">
<ins ukl:ChangeId="d29p1094" ukl:CommentaryRef="c14412581">gas supplier</ins>
</term>
<ins ukl:ChangeId="d29p1094" ukl:CommentaryRef="c14412581">” and “</ins>
<term refersTo="#term-gas-shipper" eId="term-gas-shipper">
<ins ukl:ChangeId="d29p1094" ukl:CommentaryRef="c14412581">gas shipper</ins>
</term>
<ins ukl:ChangeId="d29p1094" ukl:CommentaryRef="c14412581">” mean respectively the holder of a licence under subsection (1) above, and the holder of a licence under subsection (2) above, except (in either case) where the holder is acting otherwise than for purposes connected with the carrying on of activities authorised by the licence.</ins>
</p>
</content>
</subsection>
<subsection eId="section-7A-12">
<num>
<ins ukl:ChangeId="d29p1094" ukl:CommentaryRef="c14412581">(12)</ins>
</num>
<content>
<p>
<ins class="last" ukl:ChangeId="d29p1094" ukl:CommentaryRef="c14412581">Any reference in this Part (however expressed) to activities authorised by a licence under subsection (1) above shall be construed without regard to any exception contained in Schedule 2A to this Act.</ins>
</p>
</content>
</subsection>
</section>
</hcontainer>
</part>
</body>
</act>
</akomaNtoso>