PART 5Distribution

Independence of gas transporters authorised to convey gas to premises18.

(1)

Section 7 of the Gas Act 1986 (licensing of gas transporters) M1 is amended as follows.

(2)

In subsection (2), for “subsection (3)” substitute “ subsections (3) and (3A) ”.

(3)

After subsection (3) insert—

“(3A)

A licence authorising the conveyance of gas through pipes to any premises must not be granted under this section to a person who is a gas producer unless it is a condition of the licence that the person must not convey gas through pipes to 100,000 or more sets of premises.”.

(4)

In subsection (4), for “The” substitute “ Subject to subsection (3A), the ”.

(5)

In subsection (10), before paragraph (a) insert—

“(za)

“gas producer” means a person who—

(i)

gets natural gas from its natural condition in strata otherwise than as an unintended consequence of the storage of gas, and requires a licence under section 3 of the Petroleum Act 1998 (licences to search and bore for and get petroleum) to do so or would require such a licence if getting the gas in Great Britain; or

(ii)

produces any other gas, including in particular biomethane, which is suitable for conveyance through pipes to premises in accordance with a licence under section 7;”.