Part 5Independent System Operator and Planner

Licences

168Licensing of gas system planning activity

(1)

The Gas Act 1986 is amended as follows.

(2)

In section 5 (prohibition on unlicensed activities), in subsection (1)—

(a)

omit the “or” at the end of paragraph (c);

(b)

after that paragraph insert—

“(ca)

carries out planning and forecasting functions of the Independent System Operator and Planner;”;

(c)

after subsection (10) insert—

“(10A)

In subsection (5)(1)(ca), “planning and forecasting functions of the Independent System Operator and Planner” means functions that—

(a)

are conferred by or by virtue of an enactment on a person who is designated under section 162(1) of the Energy Act 2023, and

(b)

relate to strategic planning and forecasting in connection with the development of pipe-line systems operated by gas transporters for the conveyance of gas.”

(3)

After section 7A insert—

“7AALicensing of a person carrying out gas system planner functions

(1)

Subject to subsections (3) and (4), the Authority may grant a licence authorising a person to carry out planning and forecasting functions of the Independent System Operator and Planner (“a gas system planner licence”).

(2)

Subject to subsection (4), the Secretary of State may grant a gas system planner licence.

(3)

The first gas system planner licence may only be granted by the Secretary of State.

(4)

A person may not be granted a gas system planner licence unless either of the following paragraphs applies to the person—

(a)

the person—

(i)

already holds an electricity system operator licence, or

(ii)

is treated as holding such a licence by virtue of a direction under section 167 of the Energy Act 2023;

(b)

the person is granted an electricity system operator licence, or is treated by virtue of a direction under section 167 of the Energy Act 2023 as having been granted such a licence, at the same time as the person is granted a gas system planner licence.

(5)

In this section—

“electricity system operator licence” means a licence under section 6(1)(da) of the Electricity Act 1989;

“planning and forecasting functions of the Independent System Operator and Planner” has the meaning given by section 5(10A).”

(4)

In section 7B (licences: general)—

(a)

in subsection (3), after “contained in it” insert “and subject to subsection (3A)”;

(b)

after subsection (3) insert—

“(3A)

If a person who holds a gas system planner licence ceases at any time to hold a licence under section 6(1)(da) of the Electricity Act 1989, the person is to be treated as ceasing to hold the gas system planner licence at the same time.”

(5)

In section 8AA (transfer of licences), after subsection (11) insert—

“(11ZA)

A gas system planner licence may not be transferred to a person unless a licence granted under section 6(1)(da) of the Electricity Act 1989 is also transferred to the same person at the same time.”