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Explanatory Note

(This note is not part of the Order)

This Order provides for the phased introduction of competition in the supply of piped gas to premises at rates not expected to exceed 2,500 therms a year (predominately domestic premises). By virtue of article 3 of the Order, domestic supply licences granted under section 7A(1)(a) of the Gas Act 1986 (as amended by the Gas Act 1995) may authorise the supply of gas in Devon, Cornwall and Somerset from 29th April 1996, and elsewhere in the south-west and south-east of England from 31st December 1997 or such earlier date during 1997 as may be determined by the Director General of Gas Supply (“the Director”). By virtue of article 4, the Director is enabled to provide for domestic supply licences to authorise the supply of gas anywhere in Great Britain from a date during 1998. Article 5 provides for consultation before the Director exercises the power to determine a date under either article 3 or article 4.

The Order does not affect the rights of British Gas plc or others authorised to supply gas prior to the commencement of the Gas Act 1995. These rights are preserved by provisions in section 6(3) to (5) of that Act.