SCHEDULES

SCHEDULE 4Utility activities

PART 1Activities that are utility activities

I21Gas and heat

1

The following are utility activities—

a

the provision or operation of a fixed network for the provision of a service to the public in connection with the production, transport or distribution of gas or heat;

b

the supply of gas or heat to such a network.

2

But the supply of gas or heat to a network is not a utility activity if—

a

the person supplying it (the “operator”) is a private utility or a public undertaking,

b

the production of gas or heat by the operator is a necessary consequence of carrying out an activity other than a specified activity, and

c

the amount of gas or heat supplied to the network represents not more than 20 per cent of the operator’s turnover amount.

I13

An appropriate authority may by regulations make provision about how to calculate an amount referred to in sub-paragraph (2)(c).

I14

The regulations may, in particular, make provision for such an amount to be calculated by reference to—

a

an average amount for a period specified in the regulations;

b

another reasonable method so specified.