SCHEDULES

F1SCHEDULE 1U.K.

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F4SCHEDULE 2U.K.

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[F5SCHEDULE 2AE+W+S Exceptions to prohibition on unlicensed activities

Conveyance or supply by landlords etc.E+W+S

1E+W+SSection 5(1) of this Act is not contravened by a person—

(a)conveying within a building or part of a building in which he has an interest; or

(b)supplying for use in such a building or part of a building,

gas supplied to the building by a person authorised to supply it by or under section 6A or 7A of this Act or this Schedule.

Conveyance or supply to associated companiesE+W+S

2E+W+SSection 5(1) of this Act is not contravened by a company conveying or supplying gas to any premises occupied by a subsidiary or holding company of the company, or by a subsidiary of a holding company of the company.

Conveyance or supply of propane or butaneE+W+S

3(1)Section 5(1) of this Act is not contravened by a person conveying or supplying to any premises gas which consists wholly or mainly of propane or butane.E+W+S

(2)In the case of a supply, this paragraph does not apply unless—

(a)the contract for the supply contains provisions empowering a person authorised by the supplier to enter the premises where in his opinion it is necessary to do so for the purpose of averting danger to life or property;

(b)those provisions are in terms approved for the purposes of this paragraph by the Secretary of State; and

(c)the gas is conveyed to the premises otherwise than by a public gas transporter.

Conveyance for supply to large consumersE+W+S

4E+W+SSection 5(1) of this Act is not contravened by a person conveying gas to any premises at any time if they are supplied with gas at a rate which, at any time within the period of 12 months immediately preceding that time, he reasonably expected to exceed 75,000 therms a year.

Supply to very large consumersE+W+S

5(1)Sub-paragraph (2) below applies where a person (in this paragraph referred to as a “supplier ”) notifies the Director—E+W+S

(a)that he proposes to undertake a supply of gas to any premises at a rate in excess of 2,000,000 therms a year (in this paragraph referred to as “the required rate ”); or

(b)that, in such circumstances as may be described in the notification, he would undertake a supply of gas to any premises, at a rate in excess of the required rate, for such period as may be so described.

(2)Section 5(1) of this Act is not contravened by a supply of gas to the premises (or, as the case may require, a supply of gas to the premises in the circumstances and for the period described in the notification) unless, within six weeks of receiving the notification, the Director notifies the supplier either—

(a)that he is of the opinion that the rate of supply to those premises would be unlikely to exceed the required rate; or

(b)that he is unable to form an opinion as to whether the rate of supply to those premises would or would not be likely to exceed the required rate.

(3)Where a supplier has given the Director a notification under sub-paragraph (1)(a) above and—

(a)the rate of supply to the premises to which the notification relates fails to exceed the required rate for three successive periods of twelve months;

(b)the supplier fails to furnish the Director with such information as he may require for the purpose of determining whether the condition in paragraph (a) above is fulfilled; or

(c)the supplier fails to afford to the Director such facilities as he may require for the purpose of verifying any information furnished in pursuance of such a requirement as is mentioned in paragraph (b) above,

the Director may direct that the supplier’s notification shall be treated as invalid for the purposes of that sub-paragraph except as regards gas previously supplied.

(4)As soon as practicable after receiving a notification under sub-paragraph (1) above, giving a notification under sub-paragraph (2) above or giving a direction under sub-paragraph (3) above, the Director shall send a copy of the notification or direction to the Health and Safety Executive.]

Section 6B

[F6SCHEDULE 2AAU.K.Duties of distribution exemption holders

Third party accessU.K.

1.(1)This paragraph applies where—U.K.

(a)a customer owns or occupies premises which are connected to an exempt distribution system;

(b)the customer is taking a supply of gas through that system from—

(i)the distribution exemption holder that operates or has control of the system, or

(ii)a person related to the distribution exemption holder; and

(c)the customer—

(i)has served on the distribution exemption holder a notice expressing the customer’s interest in taking a supply of gas from a third party supplier through that system; and

(ii)has provided with the notice evidence that at least one third party supplier would be willing to supply the customer with gas through that system, and has identified any such third party supplier in the notice.

(2)In this Schedule “expression of interest” means a notice served under sub-paragraph (1).

(3)Within 5 working days beginning with the day on which it receives the expression of interest, the distribution exemption holder must provide any person related to it that is currently supplying the customer with gas with a copy of the expression of interest.

(4)Within 10 working days beginning with the day on which it receives the expression of interest, the distribution exemption holder must serve on the customer—

(a)a notice informing the customer that it will take the steps in sub-paragraph (6) with a view to giving a third party supplier access to its distribution system; or

(b)a notice informing the customer that the distribution exemption holder considers—

(i)that it would need to increase the capacity of its distribution system in order to give a third party supplier access to that distribution system; and

(ii)that one of the conditions in sub-paragraph (5) is met.

(5)Those conditions are—

(a)that it is not technically feasible to provide the increase in capacity in question;

(b)that providing that increase in capacity would have a significant and adverse economic impact on the distribution exemption holder or any other person.

(6)Where the distribution exemption holder has served on the customer a notice under sub-paragraph (4)(a), the distribution exemption holder must—

(a)serve on any third party supplier identified in the expression of interest a notice specifying—

(i)any metering arrangements that the distribution exemption holder considers would be required to enable access to be given; and

(ii)whether it would be willing to give access through contractual arrangements which would not require a connection to be made or modified; and

(b)provide each such third party supplier with any other documents or information that it may reasonably request.

(7)The distribution exemption holder must serve the notice required by sub-paragraph (6)(a) within 20 working days beginning with the day on which it receives the expression of interest.

(8)The distribution exemption holder must provide any documents or information requested by a third party supplier under sub-paragraph (6)(b)—

(a)within 20 working days beginning with the day of the distribution exemption holder’s receipt of the expression of interest; or

(b)if the request is made at a time when there are fewer than 10 working days remaining in the 20 working day period mentioned in paragraph (a) above, within 10 working days beginning with the day of the distribution exemption holder’s receipt of the request.

2.(1)This paragraph and paragraph 3 apply where a customer who has served an expression of interest relating to an exempt distribution system serves on the distribution exemption holder a notice—U.K.

(a)confirming that the customer has entered into a contract with a third party supplier identified in the expression of interest for the supply of gas to premises which are connected to the exempt distribution system; and

(b)identifying that third party supplier.

(2)Within 5 working days beginning with the day on which it receives the notice served under sub-paragraph (1), the distribution exemption holder must provide any person related to it that is currently giving a supply of gas to the customer with a copy of that notice.

(3)If the distribution exemption holder has not, by the end of the 10 working day period mentioned in paragraph 1(4), served on the customer a notice under paragraph 1(4)(b), the distribution exemption holder must give the third party supplier such access to the distribution system to which the expression of interest relates as is necessary to enable the third party supplier to give a supply of gas to the customer.

(4)Access under sub-paragraph (2) must be given either—

(a)as soon as is reasonably practicable after the distribution exemption holder receives the notice served under sub-paragraph (1); or

(b)on a date agreed by the distribution exemption holder, the third party supplier and the customer in writing.

(5)Sub-paragraphs (6) to (11) apply if the distribution exemption holder has served on the customer a notice under paragraph 1(4)(b) (whether before or after the service of the notice under sub-paragraph (1)).

(6)Subject to sub-paragraph (7), the distribution exemption holder must give the third party supplier such access to its distribution system as is necessary to enable the third party supplier to give a supply of gas to the customer, and must give that access—

(a)as soon as is reasonably practicable after the end of the period of 28 working days beginning with the day on which the customer serves the notice under sub-paragraph (1); or

(b)on a date agreed by the distribution exemption holder, the third party supplier and the customer in writing.

(7)If, before the end of the period mentioned in sub-paragraph (6)(a), the distribution exemption holder takes the steps mentioned in sub-paragraph (8)—

(a)the distribution exemption holder is not required to give access in accordance with sub-paragraph (6), and

(b)sub-paragraph (9) applies.

(8)The steps mentioned in sub-paragraph (7) are—

(a)providing the third party supplier with evidence to show—

(i)that the distribution exemption holder would need to increase the capacity of its distribution system in order to give the third party supplier access to that distribution system; and

(ii)that one of the conditions in paragraph 1(5) is met; and

(b)sending a copy of the evidence to the customer.

(9)If, within the period mentioned in sub-paragraph (10), the distribution exemption holder and the third party supplier enter into a contract for the provision to the third party supplier of such access as is necessary to enable it to give a supply of gas to the customer through the distribution system, the distribution exemption holder must give access to the third party supplier in accordance with the terms of the contract.

(10)That period is—

(a)the 14 days immediately following the period mentioned in sub-paragraph (6)(a); or

(b)any longer period that the distribution exemption holder, the third party supplier and the customer may agree in writing.

(11)If, before the end of the 28 day period mentioned in sub-paragraph (6)(a), the distribution exemption holder, the third party supplier and the customer agree in writing to the extension of that period, sub-paragraphs (6) to (10) have effect as if sub-paragraph (6)(a) referred to the extended period instead of to the period of 28 working days there mentioned.

3.(1)The third party supplier mentioned in paragraph 2(1) may make an application to the Authority under this paragraph if—U.K.

(a)the distribution exemption holder has served on the customer a notice under paragraph 1(4)(b); and

(b)at the end of the period mentioned in paragraph 2(10), the distribution exemption holder is not under a duty (whether by virtue of sub-paragraph (6) or (9) of paragraph 2) to give access to the third party supplier.

(2)The third party supplier may not make an application under this paragraph unless it has, no later than the 10th working day before the day on which the application is made, served on the distribution exemption holder a notice—

(a)informing the distribution exemption holder that it intends to make an application under this paragraph; and

(b)inviting the distribution exemption holder to provide it with any further evidence it may wish to provide for the purpose mentioned in paragraph 2(8)(a).

(3)The application must include—

(a)any evidence provided by the distribution exemption holder under paragraph 2(8)(a) or sub-paragraph (2)(b) above;

(b)a description of the nature of the access required by the third party supplier (including any alternative forms of access that would be acceptable to it); and

(c)any evidence the third party supplier may wish to include—

(i)to show that the capacity of the distribution system would not need to be increased in order to give a third party supplier access to it;

(ii)to show that a condition in paragraph 1(5) is not met; or

(iii)as to the benefits that would be brought by any increase in capacity that may be necessary.

(4)The third party supplier must send a copy of the application to the distribution exemption holder and the customer.

(5)Where an application has been made under this paragraph the Authority may, at the request of the customer or the third party supplier (the “requesting party”), ask the distribution exemption holder to provide the Authority and the requesting party with information in respect of the measures that would be required to reinforce the distribution system in order to provide the necessary capacity.

(6)Except to the extent that sub-paragraph (7) applies, the distribution exemption holder must comply with any request made by the Authority under sub-paragraph (5).

(7)If the distribution exemption holder represents to the Authority that particular information should not be disclosed under sub-paragraph (6) because it is commercially sensitive, the Authority may determine that the information in question should be excepted from the duty to disclose information under that sub-paragraph, having regard to the need to preserve the confidentiality of commercially sensitive information.

(8)The distribution exemption holder may recover from the requesting party any costs reasonably incurred in providing any information requested under sub-paragraph (5).

(9)Where an application has been made under this paragraph the Authority—

(a)must, if satisfied that the conditions in sub-paragraph (10) are met, determine that the distribution exemption holder is entitled to refuse the third party supplier access to its distribution system on the ground of lack of capacity;

(b)must, if not satisfied that those conditions are met, determine that the distribution exemption holder is not entitled to refuse the third party supplier access to its distribution system on the ground of lack of capacity.

(10)Those conditions are—

(a)that the distribution exemption holder would need to increase the capacity of its distribution system in order to give the third party supplier access to it; and

(b)that either it is not technically feasible to provide that increase in capacity, or the benefits of the increase in capacity would be outweighed by the economic impact that the provision of the increase in capacity would have on the distribution exemption holder or any other person.

(11)The Authority must, as soon as is reasonably practicable after making its determination—

(a)notify the distribution exemption holder of its determination; and

(b)provide the customer and the third party supplier with a copy of that notice.

(12)If the Authority determines that the distribution exemption holder is not entitled to refuse the third party supplier access to its distribution system on the ground of lack of capacity—

(a)the distribution exemption holder must give the third party supplier such access to its distribution system as is necessary to enable the third party supplier to give a supply of gas to the customer;

(b)paragraph 1(6) to (8) applies as if the distribution exemption holder had served a notice under paragraph 1(4)(a) on the customer, and as if the references in paragraph 1(7) and (8)(a) to the “expression of interest” were to the notification under sub-paragraph (11) above; and

(c)paragraph 5 has effect as if the reference in paragraph 5(3) to the “expression of interest” were to the notification under sub-paragraph (11) above.

(13)Access under sub-paragraph (12)(a) must be given either—

(a)as soon as is reasonably practicable after the distribution exemption holder receives the notification under sub-paragraph (11); or

(b)on a date agreed by the distribution exemption holder, the third party supplier and the customer in writing.

4.(1)This paragraph applies where a distribution exemption holder is required under paragraph 2(3), (6) or (9) or 3(12)(a) to give a third party supplier access to its distribution system.U.K.

(2)The duty must be performed for so long as the access is required.

(3)In meeting the duty the distribution exemption holder must not—

(a)treat the third party supplier less favourably than any other supplier in respect of the terms and conditions for access to its distribution system, including those relating to any connection under paragraph 7(3);

(b)refuse to give access on the basis that the Authority has not yet approved its charging methodology; or

(c)act in a manner which unreasonably prevents, restricts or delays access to its distribution system by the third party supplier.

(4)The distribution exemption holder must grant the third party supplier such ancillary or incidental rights over its distribution system as are necessary to enable the third party supplier to meet its licence or statutory obligations, including any obligations of the third party supplier relating to metering functions.

(5)Where access has been given before a methodology for calculating a use of system charge has been given an approval that is required by virtue of paragraph 5(1), the distribution exemption holder may, within a reasonable period after receiving notification of the approval of the methodology, require the third party supplier to pay for that access an amount that is—

(a)equivalent to the charge that would have been payable for that access had the methodology been approved before the access was given; and

(b)payable within such period as the parties agree or, in the absence of such agreement, within such reasonable period after the distribution exemption holder demands the payment as may be specified by the distribution exemption holder.

Charges for use of systemU.K.

5.(1)Subject to paragraph 13(1), a distribution exemption holder on whom a customer has served an expression of interest must not impose a use of system charge unless the Authority has approved the methodology for calculating that charge under sub-paragraph (5) or paragraph 14(7).U.K.

(2)If such a distribution exemption holder proposes to impose a use of system charge in circumstances where, by virtue of sub-paragraph (1), the Authority’s approval of the methodology for that charge is required the distribution exemption holder must—

(a)prepare a record of the assets and liabilities associated with its distribution activities at the time of the receipt of the expression of interest;

(b)prepare a statement (a “charging statement”) containing details of the proposed methodology for calculating the use of system charge;

(c)provide the Authority with—

(i)the charging statement,

(ii)any evidence that the distribution exemption holder may wish to provide in support of the methodology proposed for calculating the use of system charge,

(iii)a copy of the expression of interest, and

(iv)such other information or documents as the Authority may request;

(d)provide the relevant third party supplier with a copy of the charging statement.

(3)Subject to sub-paragraph (4), all of the steps required by sub-paragraph (2) must be carried out within 20 working days beginning with the day of the distribution exemption holder’s receipt of the expression of interest.

(4)Where the Authority has requested further information or documents in accordance with sub-paragraph (2)(c)(iv) at a time when there are fewer than 10 working days remaining in the 20 working day period mentioned in sub-paragraph (3), the further information or documents must be provided within 10 working days beginning with the day of the distribution exemption holder’s receipt of the request.

(5)Where a distribution exemption holder has complied with sub-paragraph (2)(c) the Authority must, as soon as is reasonably practicable—

(a)decide whether to approve the methodology proposed by that distribution exemption holder; and

(b)notify the distribution exemption holder of that decision.

(6)Where a distribution exemption holder receives a notice under sub-paragraph (5)(b), it must, as soon as is reasonably practicable after that receipt, provide the relevant third party supplier with a copy of that notice.

(7)Where the Authority does not approve the methodology proposed by the distribution exemption holder, the Authority must give reasons for that decision.

(8)Where the Authority does not approve the methodology proposed by the distribution exemption holder and the distribution exemption holder still wishes to impose a use of system charge the distribution exemption holder must—

(a)submit to the Authority a charging statement containing details of a revised methodology;

(b)provide the Authority with a copy of such other information as the Authority may request in respect of that revised methodology; and

(c)provide the relevant third party supplier with a copy of the charging statement.

(9)Where at any time a distribution exemption holder wishes to modify a methodology that has previously been approved under this Schedule and is used by it for calculating a use of system charge levied for the use of a distribution system other than a closed distribution system, the distribution exemption holder must—

(a)submit to the Authority a charging statement containing details of the proposed revised methodology;

(b)provide the Authority with a copy of such other information as the Authority may request; and

(c)provide the relevant third party supplier, and any other third party supplier who would be affected by the modification proposed, with a copy of the charging statement.

(10)If a distribution exemption holder takes the steps required by sub-paragraph (8) or (9), sub-paragraphs (5) to (7) apply as if it had complied with sub-paragraph (2)(c).

(11)For the purposes of sub-paragraphs (2)(d), (6), (8)(c) and (9)(c), a duty to provide anything to “the relevant third party supplier” is a duty to provide it—

(a)if at the time when the duty is discharged the distribution exemption holder has received a notice from the customer under paragraph 2(1), to the third party supplier identified in that notice; or

(b)if at the time when the duty is discharged the distribution exemption holder has not received such a notice from the customer, to any third party supplier identified in the expression of interest.

6.(1)Sub-paragraph (2) applies where a distribution exemption holder is under a duty to give access to its distribution system under paragraph 2(3), (6) or (9) or 3(12)(a).U.K.

(2)Where and for so long as the distribution exemption holder is imposing a use of system charge, it must—

(a)prepare and maintain distribution accounts in respect of the distribution system for each regulatory year;

(b)keep copies of those accounts for 6 years from the date of the transactions to which they relate; and

(c)notify the Authority of the address where those accounts are held.

(3)In sub-paragraph (2)—

• “distribution accounts” means accounting records in relation to the business (the “distribution business”) constituted by the distribution activities of the distribution exemption holder’s business that—

  (a)

  are sufficient to show and explain the transactions of the distribution business, separate from any other transactions of the distribution exemption holder’s business;

  (b)

  are sufficient to disclose with reasonable accuracy, at any time, the financial position of the distribution business at that time;

  (c)

  contain entries from day to day of all sums of money received and expended in the course of the distribution business and the matters in respect of which the receipt and expenditure takes place; and

  (d)

  contain a record of the assets and liabilities attributable to the distribution business;

• “regulatory year”, in relation to a distribution business, means—

  (a)

  a period of 12 months beginning on 1 April in any calendar year and ending on 31 March of the next calendar year; or

  (b)

  where the distribution exemption holder wishes to align the accounting period for the distribution business with the accounting period for any other business it carries on or the business of any a person related to it, the period of 12 months used as the accounting period for that other business or the business of that related person.

ConnectionU.K.

7.(1)This paragraph applies where a distribution exemption holder is under a duty to give access to a third party supplier under paragraph 2(3), (6) or (9) or 3(12)(a).U.K.

(2)The third party supplier, or the customer who served the notice under paragraph 2(1), may require a connection to be made between the distribution exemption holder’s distribution system and—

(a)the premises mentioned in paragraph 1(1)(a), or

(b)a pipe-line system operated or controlled by—

(i)a gas transporter, or

(ii)another distribution exemption holder.

(3)The distribution exemption holder must, if required to make a connection pursuant to sub-paragraph (2) either—

(a)connect the premises or pipe-line system to its distribution system and supply and lay any pipe that may be necessary for that purpose; or

(b)where the distribution exemption holder and the person requiring the connection have agreed that a person other than the distribution exemption holder is to supply and lay any pipe that may be necessary for the purpose of connection, connect the premises or pipe-line system to its distribution system once that pipe has been supplied and laid.

(4)The duty under sub-paragraph (3) must be performed in accordance with such terms as are agreed under paragraphs 8 and 9, or paragraph 10, for so long as the connection is required.

(5)In this paragraph and paragraphs 8 to 10—

(a)any reference to a distribution exemption holder connecting any premises or pipe-line system includes a reference to maintaining the connection;

(b)any reference to requiring a connection includes a reference to requiring the connection to be maintained;

(c)any reference to supplying or laying a pipe includes a reference to the supply or laying of a pipe either by the installation of a new one or by the modification of an existing one; and

(d)any reference to a pipe includes a reference to any apparatus ancillary to the pipe.

8.(1)Where a distribution exemption holder is under a duty to connect any premises, or another pipe-line system, to its distribution system in accordance with paragraph 7(3)(a)—U.K.

(a)any expenses reasonably incurred in making the connection or in supplying and laying the pipe must, if and to the extent that the distribution exemption holder requires, be met by the person requiring the connection;

(b)the distribution exemption holder may require the person requiring the connection to provide it with reasonable security for the payment to it of all money which may become due to it in respect of the supply and laying of the pipe;

(c)if the person requiring the connection fails to provide any security required under paragraph (b), or any security given by the person requiring the connection becomes invalid or insufficient and that person fails to provide alternative or additional security, the distribution exemption holder may if it thinks fit—

(i)where the connection has not been made, refuse to supply or lay the pipe for so long as the failure continues, or

(ii)where the connection is being maintained, disconnect the premises or pipe-line system in question;

(d)the distribution exemption holder may require the person requiring the connection to accept, in respect of the making of the connection and the supplying and laying of the pipe, any terms restricting any liability of the distribution exemption holder for economic loss resulting from negligence that it is reasonable in all the circumstances for that person to be required to accept.

(2)The reference in sub-paragraph (1)(a) to expenses reasonably incurred in supplying a pipe includes a reference to the capitalised value of any expenses likely to be so incurred in continuing to supply it; and the reference in sub-paragraph (1)(b) to money which may become due in respect of the laying of the pipe is to be construed accordingly.

(3)Where any sum has been deposited with a distribution exemption holder by way of security under sub-paragraph (1)(b), the distribution exemption holder must, on repaying the amount, also pay interest on that amount, calculated on a daily basis at the rate of 1 per cent above LIBOR, for the period beginning with the day following that on which the amount was deposited and ending on the day on which the amount is repaid.

(4)In sub-paragraph (3), “LIBOR”, in relation to any day, means the sterling three-month London inter-bank offered rate in force for that day rounded if necessary to two decimal places.

(5)Where the distribution exemption holder is under a duty to connect any premises, or another pipe-line system to its distribution system in accordance with paragraph 7(3)(b)—

(a)any expenses reasonably incurred in making the connection must, if and to the extent that the distribution exemption holder requires, be met by the person requiring the connection;

(b)the distribution exemption holder may require the person requiring the connection to accept any terms—

(i)indemnifying the distribution exemption holder in respect of any liability connected with the laying of the pipe, and

(ii)which it is reasonable in all the circumstances for the person requiring the connection to be required to accept; and

(c)the following will, from the time of the connection, vest in and become property, rights or liabilities of the distribution exemption holder—

(i)the pipe supplied and laid for the purpose of connection, and

(ii)any rights or liabilities of the owner or occupier of the premises, or of the person who operates or has control of the pipe-line system which relate to the laying, maintenance, repair, alteration or removal of the pipe.

(6)Nothing in paragraph 7 is to be taken as requiring the distribution exemption holder to make a connection if and to the extent that—

(a)the distribution exemption holder is prevented from doing so by circumstances outside its control;

(b)circumstances exist by reason of which the connection would or might involve danger to the public, and the distribution exemption holder has taken all reasonable steps to prevent the circumstances from occurring and to prevent them from having that effect; or

(c)it is not reasonable in all the circumstances for the distribution exemption holder to be required to do so.

(7)Without prejudice to the generality of sub-paragraph (6), nothing in paragraph 7 is to be taken as requiring the distribution exemption holder to make a connection if any consent that is necessary for the connection to be made or, as the case may be, for the pipe to be supplied and laid, has not been given.

(8)Sub-paragraphs (1)(c)(ii) and (6)(c), do not permit a distribution exemption holder to disconnect any premises or pipe-line system unless the distribution exemption holder has given the owner and the occupier of the premises or (as the case may be) the person who operates or has control of the pipe-line system not less than 7 working days’ notice of its intention to disconnect.

(9)Nothing in paragraph 7 is to be taken as requiring a distribution exemption holder to connect any premises or pipe-line system if the supply of gas to the premises or pipe-line system is likely to exceed 75,000 therms in any period of 12 months.

9.(1)This paragraph applies where a distribution exemption holder is required to connect its distribution system to any premises or pipe-line system under paragraph 7.U.K.

(2)Except where an agreement under paragraph 10(1) is in place, the distribution exemption holder must comply with the requirements of sub-paragraph (3) as soon as is reasonably practicable after the person requiring the connection has—

(a)served on the distribution exemption holder a notice requesting that the distribution exemption holder offer terms for making the connection; and

(b)provided the distribution exemption holder with the following information—

(i)details of the premises or pipe-line system from which the connection to the distribution exemption holder’s distribution system is required, including the location of the premises or pipe-line system,

(ii)the date on or by which the person requiring the connection proposes that the work necessary for the connection to be made should be carried out,

(iii)details of the person by whom the person requiring the connection proposes that the pipe should be supplied and laid,

(iv)the maximum pressure at which gas may be required to be conveyed through the connection,

(v)details of any other requirements that the person requiring the connection has, including any metering requirements, and

(vi)any other information in relation to the required connection reasonably requested by the distribution exemption holder.

(3)The distribution exemption holder must serve on the person requiring the connection a notice—

(a)raising any concerns that it has with the information provided in accordance with sub-paragraph (2)(b);

(b)proposing arrangements for any security that the person requiring the connection will be required to pay to it under paragraph 8(1)(b);

(c)proposing arrangements for any payment that the person requiring the connection will be required to make under paragraph 8(1)(a) or (5)(a);

(d)stating any terms that the person requiring a connection will be required to accept under paragraph 8(1)(d), restricting the distribution exemption holder’s liability;

(e)stating any terms for indemnity that the person requiring a connection will be required to accept under paragraph 8(5)(b); and

(f)proposing any other terms on which it will make the connection.

(4)The distribution exemption holder must negotiate in good faith with the person requiring the connection and endeavour to reach an agreement on the terms and conditions for that connection.

10.(1)The distribution exemption holder may enter into an agreement with a person requiring a connection in pursuance of paragraph 7(2) for the making of a connection on such terms as may be agreed by the parties.U.K.

(2)So long as the agreement is effective, the rights and liabilities of the parties shall be those arising under the agreement and not those provided for under paragraphs 7 to 9.

11.(1)Section 27A (determination of certain disputes) has effect as if the disputes mentioned in section 27A(1) included a dispute arising under paragraphs 7 to 9 of this Schedule between a distribution exemption holder and a person requiring a connection in pursuance of paragraph 7(2).U.K.

(2)In the application of section 27A in relation to such a dispute, that section is to be read as if—

(a)subsection (2) provided that such a dispute, if relating to the connection of any premises to a pipe-line system operated or controlled by a distribution exemption holder, may not be referred to the Authority after the end of the period of 12 months beginning with the time when the connection is made;

(b)in subsection (5) the references to a gas transporter were to a distribution exemption holder, and the reference to a person requiring a connection to a main of the transporter were to a person requiring a connection in pursuance of paragraph 7(2) of this Schedule;

(c)subsection (6) and the reference to that subsection in subsection (8) were omitted; and

(d)the reference in subsection (7) to a dispute arising under section 11(1) were to a dispute arising under paragraph 8(1)(b) or (c) of this Schedule.

(3)The references in sub-paragraphs (1) and (2)(b) to a person requiring a connection in pursuance of paragraph 7(2) are to be construed in accordance with paragraph 7(5).

Closed distribution systemsU.K.

12.(1)A distribution exemption holder may apply to the Authority for an exempt distribution system operated or controlled by it to be classified as a closed distribution system.U.K.

(2)Where the Authority has received an application from a distribution exemption holder under sub-paragraph (1) (a “closed distribution system application”), it must classify the distribution system as a closed distribution system if the Authority considers that all of the following criteria are met—

(a)the distribution system is not used for the purpose of supplying gas to household customers, or is used to supply fewer than 50 household customers who—

(i)are employees of, or work for or otherwise render services to, the distribution exemption holder or a person related to the distribution exemption holder; and

(ii)take a supply of gas that is wholly or mainly from a gas production site embedded in the distribution system;

(b)the distribution system is wholly or mainly used for distributing gas within a geographically self-contained industrial, commercial or shared services site and is not integrated with any pipe-line system operated by a gas transporter; and

(c)the distribution system is wholly or mainly used either—

(i)by system users whose businesses, for technical or safety-related reasons, have operational or production processes that are integrated with those of other system users of that distribution system; or

(ii)for the purpose of supplying gas to premises owned or occupied by the distribution exemption holder or by a person related to the distribution exemption holder.

(3)In sub-paragraph (2) “gas production site” means a site on which a person carries on an activity by virtue of which the person is a gas producer within the meaning of section 7.

(4)A closed distribution system application must—

(a)identify the distribution system to which the application relates;

(b)include any evidence available to the applicant to support that application; and

(c)provide any further information or documents that the Authority may request in respect of that application;

(5)The Authority must decide whether to classify a distribution system as a closed distribution system as soon as is reasonably practicable after the Authority has received—

(a)the closed distribution system application; and

(b)any further information or documents requested by it in under sub-paragraph (4)(c).

(6)The Authority must notify the distribution exemption holder of its decision as soon as is reasonably practicable after that decision has been made.

13.(1)Paragraph 5(1) to (8) does not apply in relation to any use of system charge (or proposed use of system charge) that relates to a closed distribution system.U.K.

(2)Where a distribution exemption holder that operates or has control of a closed distribution system receives an expression of interest from a customer who owns or occupies premises that are connected to that system, it must—

(a)include in any notice served under paragraph 1(4) a statement that its distribution system is a closed distribution system; and

(b)within 7 working days beginning with the day on which it receives the expression of interest, by notice inform any third party supplier identified in the expression of interest that its distribution system is a closed distribution system.

14.(1)Sub-paragraphs (2) and (3) apply if a customer has served an expression of interest with respect to a closed distribution system and—U.K.

(a)the customer, or a third party supplier identified in the expression of interest, serves a notice on the distribution exemption holder requesting that the methodology for a proposed use of system charge be submitted to the Authority for approval; and

(b)at the time of receiving the request the distribution exemption holder has not received any confirmation under paragraph 2(1) that the customer has entered into a contract with a third party supplier.

(2)From the time when the distribution exemption holder receives that request, paragraph 5(1) to (8) has effect in relation to the closed distribution system as if paragraph 13(1) did not have effect.

(3)For the purposes of the application of paragraph 5(2) in relation to the proposed use of system charge mentioned in sub-paragraph (1)(a), the reference in paragraph 5(3) to the “expression of interest” is to be read as a reference to the request mentioned in sub-paragraph (1)(a).

(4)Sub-paragraphs (5) to (11) apply where a customer who owns or occupies premises that are connected to a closed distribution system has served a notice under paragraph 2(1) confirming that it has entered into a contract with a third party supplier (“the confirmed third party supplier”) and—

(a)the customer or the confirmed third party supplier serves on the distribution exemption holder that operates or has control of the closed distribution system a notice requesting that the methodology for a use of system charge that is being applied by the distribution exemption holder be submitted to the Authority for approval;

(b)the methodology for calculating the charge has not previously been approved under this Schedule; and

(c)at the time of receiving the notice under paragraph (a), the distribution exemption holder has received the notice served under paragraph 2(1).

(5)The distribution exemption holder must, within 20 working days beginning with the day on which it receives the request under sub-paragraph (4)(a)—

(a)provide the Authority with—

(i)a charging statement in respect of the methodology for any use of system charge applied at the time of the request being made; and

(ii)such other information or documents as the Authority may specify; and

(b)provide the customer and the confirmed third party supplier with a copy of that charging statement.

(6)Where the Authority has requested further documents or information in accordance with sub-paragraph (5)(a)(ii) at a time when there are fewer than 10 working days remaining in the 20 working day period mentioned in sub-paragraph (5), those further documents or information must be provided within 10 working days beginning with the day of the distribution exemption holder’s receipt of that request for further documents or information.

(7)Where the distribution exemption holder has complied with sub-paragraph (5)(a), the Authority must, as soon as is reasonably practicable—

(a)decide whether to approve the methodology set out in the charging statement; and

(b)notify the distribution exemption holder and the confirmed third party supplier of its decision.

(8)Where the Authority does not approve the methodology, the Authority must give reasons for that decision.

(9)Where the Authority has notified the distribution exemption holder of a decision that it does not approve the methodology, the distribution exemption holder must not continue to impose a use of system charge, except where the Authority has considered the methodology for such a charge by virtue of sub-paragraph (11) and has approved it.

(10)Where the Authority does not approve the methodology submitted under sub-paragraph (5)(a) the distribution exemption holder may—

(a)submit to the Authority a charging statement containing details of a revised methodology;

(b)provide the Authority with such other information or documents as the Authority may specify; and

(c)send a copy of the charging statement to the customer and the confirmed third party supplier.

(11)If the distribution exemption holder takes the steps mentioned in sub-paragraph (10)(a) to (c), sub-paragraphs (7) and (8) apply as if it had complied with sub-paragraph (5)(a).

(12)Where at any time a distribution exemption holder wishes to modify a methodology that has previously been approved under this Schedule and is used by it for calculating a use of system charge levied for the use of a closed distribution system, the distribution exemption holder must—

(a)submit to the Authority a charging statement containing details of the proposed revised methodology;

(b)provide the Authority with a copy of such other information or documents as the Authority may request; and

(c)send a copy of the charging statement to the customer, the confirmed third party supplier and any other third party supplier who would be affected by the modification proposed.

(13)If the distribution exemption holder takes the steps mentioned in sub-paragraph (12)(a) to (c), sub-paragraphs (7) and (8) apply as if it had complied with sub-paragraph (5)(a).

Change of circumstance in respect of a closed distribution systemU.K.

15.(1)If, after a system has been classified as a closed distribution system, there is a change of circumstance which affects, or might affect, whether the system continues to meet the criteria set out in paragraph 12(2), the distribution exemption holder that operates or has control of the distribution system must notify the Authority of the change as soon as is reasonably practicable after it occurs.U.K.

(2)If the distribution exemption holder that operates or has control of the distribution system wishes the system to continue to be classified as a closed distribution system, it must include in the notice an application to the Authority asking the Authority to confirm the classification.

(3)Any application under sub-paragraph (2) must—

(a)identify the distribution system to which the application relates;

(b)include any evidence available to the applicant to support that application; and

(c)provide any further information or documents that the Authority may request in respect of that application.

(4)Where the Authority has received a notice under sub-paragraph (1), it must, as soon as is reasonably practicable, either—

(a)revoke the classification; or

(b)confirm the classification if—

(i)the notice includes an application made under sub-paragraph (2);

(ii)the Authority has received any further information or documents requested by it; and

(iii)the Authority considers that the criteria set out in paragraph 12(2) continue to be met.

(5)The Authority must notify the applicant of its decision under sub-paragraph (4) as soon as is reasonably practicable after the decision has been made.

InterpretationU.K.

16.(1)In this Schedule—U.K.

• “charging statement” (in relation to a distribution exemption holder who proposes to impose a use of system charge) is to be construed in accordance with paragraph 5(2)(b);

• “closed distribution system” means a system classified as a closed distribution system by the Authority under paragraph 12(2);

• “customer” means a person who purchases gas for the person’s own consumption;

• “distribution system” means a pipe-line system by means of which the person who operates or has control of the system conveys gas in circumstances such that—

  (a)

  that person is thereby carrying on an activity such as is mentioned in section 5(1)(a); and

  (b)

  the whole or part of that activity is also an activity of distribution within the meaning given by Article 2(5) of the Gas Directive;

• “expression of interest” has the meaning given by paragraph 1(2);

• “household customer” means a customer who purchases gas for consumption by the customer’s own household;

• “pipe-line system” includes the pipes and any associated apparatus comprised in that system;

• “system user” in relation to a distribution system, means—

  (a)

  a person supplying gas that is being conveyed by means of that distribution system; or

  (b)

  a customer who owns or occupies premises that are connected to that distribution system;

• “third party supplier”, in relation to a distribution exemption holder, means any authorised supplier that is not related to the distribution exemption holder;

• “use of system charge”, in relation to a distribution exemption holder, means a charge which—

  (a)

  is levied by the distribution exemption holder on a third party supplier identified in an expression of interest that has been served on the distribution exemption holder; and

  (b)

  is for use of the exempt distribution system to which the expression of interest relates.

(2)For the purposes of this Schedule, a person (“A”) is related to another person (“B”) where A is—

(a)an undertaking in which B has a participating interest within the meaning of section 421A of the Financial Services and Markets Act 2000;

(b)a holding company of B;

(c)a subsidiary of B; or

(d)a subsidiary of a holding company of B.

(3)For the purposes of sub-paragraph (2) “holding company” and “subsidiary” are to be construed in accordance with section 1159 of the Companies Act 2006.

Section 6C

SCHEDULE 2ABU.K.Duties of supply exemption holders

Change of supplierU.K.

1.(1)This paragraph applies if a supply exemption holder enters into a contract with a customer to start supplying gas to any premises.U.K.

(2)The supply exemption holder must, within 7 days beginning with the day on which the contract is entered into, give any person who is currently supplying gas to the premises a notice stating—

(a)that the contract has been entered into, and

(b)when the supply exemption holder will start supplying gas to the premises.

(3)Subject to sub-paragraphs (4) and (7), the supply exemption holder must start supplying gas to the premises within 21 days of the relevant date.

(4)The supply exemption holder need not comply with sub-paragraph (3) if—

(a)the customer requests that the supply start on a later date;

(b)the customer terminates, or gives notice to terminate, the contract; or

(c)one or more of the reasons in sub-paragraph (5) applies.

(5)The reasons in this sub-paragraph are—

(a)that the supply exemption holder—

(i)does not have all of the information it requires in order to start supplying gas to the premises, despite having taken all reasonable steps to obtain the missing information from the customer; and

(ii)cannot readily obtain that information from another source;

(b)that the customer is taking a supply of gas through an exempt distribution system and the supply exemption holder is unable to start supplying gas to the premises because—

(i)a connection which the customer or supply exemption holder requires to be made in pursuance of paragraph 7(2) of Schedule 2AA has not yet been made; or

(ii)the distribution exemption holder has specified, in a notice under paragraph 1(6)(a)(i) of Schedule 2AA, a metering arrangement which it considers would be required for access to be given to a third party supplier (within the meaning of that Schedule) and that metering arrangement is not yet in place;

(c)that any other circumstance which is outside the control of the supply exemption holder and which it has taken all reasonably practicable steps to resolve prevents it from starting to supply gas to the premises.

(6)If, because of a reason in sub-paragraph (5), a supply exemption holder is not required to start supplying gas to the premises within 21 days of the relevant date, it must start supplying gas to the premises as soon as is reasonably practicable after the reason ceases to apply, and in any event within 21 days of the date on which the reason ceases to apply (but if there is more than one reason, references in this sub-paragraph to a reason’s ceasing to apply are to all the reasons’ having ceased to apply).

(7)If another supply exemption holder is currently supplying gas to the premises and has objected to the change of supplier under paragraph 2, then the supply exemption holder mentioned in sub-paragraph (1) above—

(a)must not start supplying gas to the premises before that objection is resolved; but

(b)must start supplying gas to the premises as soon as is reasonably practicable after the objection is resolved, and in any event within 21 days of the date on which the objection is resolved.

(8)For the purposes of sub-paragraph (7) an objection made under paragraph 2 is taken to be resolved—

(a)in the case of an objection based on the reason in paragraph 2(5)(a) alone—

(i)when the customer, or the supply exemption holder who made the objection, informs the supply exemption holder mentioned in sub-paragraph (1) above that the debt has been paid off in full; or

(ii)when an arrangement such as is mentioned in paragraph 2(5)(a)(iii) is made with respect to the debt;

(b)in the case of an objection based on the reason in paragraph 2(5)(b) alone, when the period mentioned in that paragraph expires;

(c)in the case of an objection based on both those reasons, when the objection has been resolved in relation to each reason in accordance with paragraphs (a) and (b) above; or

(d)in any case, when the objection is withdrawn.

(9)In this paragraph “the relevant date” means—

(a)the day after the day on which the supply exemption holder enters into the contract mentioned in sub-paragraph (1); or

(b)if, after the contract is entered into, there is a period within which the customer may decide not to proceed with it, the earlier of—

(i)the day after the day on which that period ends; or

(ii)the 14th day after the day on which the contract was entered into.

2.(1)This paragraph applies if—U.K.

(a)a person (“the new supplier”) has entered into a contract with a customer to start supplying electricity to any premises; and

(b)a supply exemption holder is currently supplying electricity to the premises under a contract with that customer.

(2)If one or more of the reasons in sub-paragraph (5) applies, the supply exemption holder may object to the change of supplier by sending notice of the objection and the reason (or reasons) for it to—

(a)the new supplier; and

(b)the customer.

(3)A notice under sub-paragraph (2) must be sent—

(a)as soon as reasonably practicable; and

(b)if the supply exemption holder is notified under paragraph 1(2), or in accordance with a condition in a licence, that the contract has been entered into, not later than the end of the 14th day after the day on which it receives that notification.

(4)If the supply exemption holder objects to a change of supplier because of the reason in sub-paragraph (5)(b), the notice of this objection must also state when the period mentioned in that sub-paragraph will expire.

(5)The reasons in this sub-paragraph are that—

(a)the customer owes money (“the debt”) to the supply exemption holder in respect of gas supplied to the customer and—

(i)the supply exemption holder has demanded payment of the debt;

(ii)at least 28 days have passed since the date on which the demand was sent to the customer and any date for payment stated in the demand has also passed; and

(iii)the new supplier and the supply exemption holder have not agreed to an arrangement under which some or all of the debt will be assigned to the new supplier; or

(b)a contract between the supply exemption holder and the customer includes a term which prevents the customer from terminating that contract within a specified period which has not expired.

(6)The supply exemption holder must comply with any reasonable request from the new supplier to provide any information, or take any other steps, required to enable the new supplier to start supplying gas to the customer’s premises.

3.(1)A supply exemption holder must not require a household customer to pay any sum in respect of a change of supplier by that household customer.U.K.

(2)Sub-paragraph (1) does not prevent a supply exemption holder from requiring payment of any termination fee payable under any contract between it and the household customer.

(3)A supply exemption holder must take all reasonable steps to ensure that a final bill in respect of any unpaid charges for gas supplied to a household customer’s premises is sent to that customer within 6 weeks of the date on which the supply exemption holder stops supplying gas to the premises.

Customer contractsU.K.

4.(1)Where a supply exemption holder enters into a contract with a household customer for the supply of gas it must provide the customer with a copy of the contract.U.K.

(2)The contract must specify—

(a)the identity and address of the supply exemption holder;

(b)the services provided, including any maintenance services provided;

(c)any service quality levels that are to be met;

(d)if a connection is required, when that connection will take place;

(e)the means by which up-to-date information may be obtained about—

(i)any applicable tariffs and maintenance charges; and

(ii)the supply exemption holder’s standard terms and conditions;

(f)the duration of the contract;

(g)any conditions for renewal of the contract;

(h)any conditions for termination of the contract or of any services provided under it, and whether the customer can terminate the contract if the supply exemption holder increases the applicable tariffs or charges, or changes one or more of the main contractual conditions;

(i)any charges for early termination of the contract;

(j)any compensation and refund arrangements which apply if any service quality levels specified in the contract are not met, including any arrangements which apply in the event of inaccurate or delayed billing;

(k)the methods of dispute resolution available to the customer in the event of a dispute with the supply exemption holder, including how such dispute resolution procedures can be initiated; and

(l)where further information on the customer’s rights as a consumer of gas can be found.

(3)If a supply exemption holder intends to increase the applicable tariffs or charges payable under a contract with a household customer it must inform that customer of the change and of any applicable termination rights as soon as practicable and no later than the date on which the customer is first charged for electricity at the increased rate.

(4)If a supply exemption holder intends to change any of the main contractual conditions of a contract with a household customer it must inform that customer of the change and of any applicable termination rights at least one month before the change is to come into effect.

(5)Any charge made under the contract for offering a particular payment method, including any charge for use of a pre-payment meter, must reflect the cost to the supply exemption holder of making that payment method available.

(6)A supply exemption holder must not treat a household customer or groups of household customers differently without good reason when offering different payment methods to customers.

(7)In this paragraph, “main contractual conditions” means any conditions of the contract which relate to a matter mentioned in any of paragraphs (b), (c) and (f) to (j) of sub-paragraph (2).

Customer informationU.K.

5.(1)No later than 12 months after entering into a contract with a customer to start supplying gas to any premises, and at intervals of not less than 12 months thereafter, a supply exemption holder must send the customer the information specified in sub-paragraph (3), (4) or (5) (whichever is applicable).U.K.

(2)But the supply exemption holder is required to specify the matters mentioned in sub-paragraphs (3)(b) and (4)(b) only so far as it is reasonably practicable to do so.

(3)If the customer is charged for its supply wholly or partly by reference to the quantity of gas supplied and a meter records the quantity supplied to that customer separately from the quantity supplied to other customers, the information in question is—

(a)the number of that meter if it has one;

(b)the amount of gas recorded by that meter as having been consumed by that customer in the 12 months immediately preceding the date on which the information is sent (or in the part of that period during which the supply exemption holder supplied electricity to those premises under the contract with the customer); and

(c)the total cost that the customer has been charged for that gas.

(4)If the customer is charged for its supply wholly or partly by reference to the quantity of gas supplied and that quantity is not recorded using a separate meter, the information in question is—

(a)the number of any meter that recorded the total gas consumed by that customer and other customers in the 12 months immediately preceding the date on which the information is sent (or in any part of that period during which the supply exemption holder supplied gas to those premises under the contract with the customer);

(b)the amount of gas recorded by that meter; and

(c)an explanation as to how the proportion of gas charged to the customer was determined.

(5)If the customer is not charged for its supply by reference to the quantity of gas supplied, the information in question is the total cost that the customer has been charged for that gas in the 12 months immediately preceding the date on which the information is sent.

(6)A supply exemption holder who is supplying electricity to any premises under a contract with a customer must comply with any written request by the customer to send relevant information—

(a)to the customer, or

(b)to a person who is not currently supplying electricity to the premises under a contract with the customer but has expressed an interest in doing so.

(7)In sub-paragraph (6) “relevant information” means—

(a)if information has been sent to a customer in accordance with sub-paragraph (1) in the previous 12 months, a copy of that information;

(b)in any other case, so much of the information referred to in sub-paragraph (1) as can be readily provided by the supply exemption holder.

(8)A supply exemption holder must not require a customer to pay for any costs associated with preparing or sending information to the customer, or to any other person at the customer’s request, in accordance with this paragraph.

6.(1)A supply exemption holder must—U.K.

(a)with each bill inform each customer what methods of dispute resolution are available to the customer in the event of a dispute with the supply exemption holder; and

(b)with each bill inform each household customer—

(i)where the energy consumer guidance and the concise guidance can be found; and

(ii)that the household customer has a right to request a copy of the concise guidance from the supply exemption holder.

(2)At the end of any period of 12 months during which a supply exemption holder has supplied a customer with gas but has not sent a bill (nor provided the customer with information under this sub-paragraph) the supply exemption holder must inform the customer of—

(a)the matters mentioned in sub-paragraph (1)(a), and

(b)if the customer is a household customer, the matters mentioned in sub-paragraph (1)(b).

(3)A supply exemption holder must send a household customer a copy of the concise guidance within one month of receiving a request for it from or on behalf of that customer.

(4)A supply exemption holder must not require a customer to pay for any costs associated with preparing or sending information to the customer in accordance with this paragraph.

(5)In this paragraph—

(a)“the energy consumer guidance” means any guidance such as in mentioned in section 19A(1)(a) of the Consumers, Estate Agents and Redress Act 2007 which is published under that section; and

(b)“the concise guidance” means any summary such as is mentioned in section 19A(1)(b) of that Act which is so published.

Determination of disputesU.K.

7.(1)Sections 27C and 27D apply in relation to an exempt supply dispute as they apply in relation to [F7a section 27B] dispute such as is mentioned in section 27B(1), but as if in section 27C(8) the words “against whom a complaint is made as mentioned in section 27B(1)(a), and” were omitted.U.K.

(2)A dispute is an “exempt supply dispute” if—

(a)it is wholly or mainly a dispute—

(i)regarding an obligation of a supply exemption holder under this Schedule; or

(ii)as to whether a supply exemption holder who has objected to a change of supplier because of a reason in paragraph 2(5) of this Schedule was entitled to object on that basis;

(b)it arises from a written complaint made against the supply exemption holder; and

(c)it is a dispute between the complainant and that supply exemption holder.

InterpretationU.K.

8.U.K.In this Schedule, unless the context otherwise requires—

• “customer” means a person who purchases gas for the person’s own consumption;

• “household customer” means a customer who purchases gas for consumption by the customer’s own household.]

[F8SCHEDULE 2BE+W+S The gas code

PreliminaryE+W+S

1(1)In this Schedule, unless the context otherwise requires—E+W+S

• “the appointed day ” means the day appointed under section 18(2) of the Gas Act 1995;

• “connect ”, in relation to any premises, means connect to a main of a [F9gas transporter], whether directly or by means of a service pipe, and “disconnect ” and “re-connect ” have corresponding meanings except that they also include discontinuing or, as the case may be, resuming the conveyance of gas to the premises;

• “consumer ” means a person who is supplied with gas conveyed to particular premises (in this Schedule referred to as his premises) by a public gas transporter;

• “relevant gas supplier ” and “relevant gas shipper ”, in relation to a consumer, mean respectively any gas supplier who is supplying him with gas conveyed to his premises and any gas shipper who has made arrangements in pursuance of which gas is conveyed to those premises.

(2)In so far as the provisions of this Schedule, other than paragraphs 20 to 22 below, apply in relation to a [F9gas transporter], gas supplier or gas shipper, they shall have effect subject to any conditions of his licence.

Consumption of gas to be ascertained by meterE+W+S

2(1)Every consumer shall take his supply through a meter—E+W+S

(a)the use of which does not contravene section 17 of this Act; and

(b)which is of a type appropriate for registering the quantity of gas supplied.

(2)In default of the consumer’s doing so or agreeing to do so—

(a)the [F10gas transporter] may disconnect or, as the case may be, refuse to connect his premises; and

(b)any relevant gas supplier may cut off the supply of gas to his premises.

Meters to be kept in proper orderE+W+S

3(1)Every consumer shall at all times, at his own expense, keep all meters—E+W+S

(a)which belong to him, or which are lent or hired to him and are owned otherwise than by the [F11gas transporter] or a relevant gas supplier; and

(b)by which the quantity of gas supplied is registered,

in proper order for correctly registering the quantity of gas.

(2)In default of the consumer’s doing so—

(a)the [F11gas transporter] may disconnect his premises; and

(b)any relevant gas supplier may cut off the supply of gas to his premises.

(3)In the case of any consumer, the [F11gas transporter] or any relevant gas supplier shall at all times, without charge to the consumer, keep any meter which is owned by him and is lent or hired to the consumer in proper order for correctly registering the quantity of gas supplied.

(4)Sub-paragraph (3) above is without prejudice to any remedy the transporter or supplier may have against the consumer for failure to take proper care of the meter.

(5)In the case of any consumer, the [F11gas transporter], any relevant gas supplier and any relevant gas shipper—

(a)shall have power to remove, inspect and re-install any meter by which the quantity of gas supplied is registered; and

(b)shall, while any such meter is removed, fix a substitute meter on the premises;

and, subject to sub-paragraph (6) below, the cost of removing, inspecting and re-installing a meter and of fixing a substitute meter shall be defrayed by the transporter, supplier or shipper.

(6)Where such a meter is removed for the purpose of being examined by a meter examiner in accordance with section 17 of this Act, the expenses incurred in removing, examining and re-installing the meter and fixing a substitute meter shall be defrayed as follows—

(a)if the examination is carried out at the request of any person and the meter is found in proper order, by that person;

(b)if the meter is not so found, by the person required by sub-paragraph (1) or (3) above to keep the meter in proper order.

(7)A meter is found in proper order for the purposes of sub-paragraph (6) above if it is found to register correctly or to register erroneously to a degree not exceeding the degree permitted by regulations under section 17 of this Act.

(8)Nothing in this paragraph shall apply in relation to any meter which, in pursuance of an agreement falling within section 17(14) of this Act, is used for ascertaining the quantity of gas supplied to a consumer if either—

(a)the agreement was entered into before the appointed day; or

(b)the [F11gas transporter] and each relevant gas shipper have agreed that the meter should be kept in proper order by a person other than the consumer.

Meter as evidence of quantity of gas suppliedE+W+S

4(1)This paragraph applies where a consumer is supplied with gas through a meter at a rate not exceeding 75,000 therms a year.E+W+S

(2)Subject to sub-paragraph (3) below, the register of the meter shall be prima facie evidence of the quantity of gas supplied.

(3)Where the meter is found, when examined by a meter examiner appointed under section 17 of this Act, to register erroneously to a degree exceeding the degree permitted by regulations under that section, the meter shall be deemed to have registered erroneously to the degree so found since the relevant date, except in a case where it is proved to have begun to do so on some later date.

(4)In sub-paragraph (3) above “the relevant date ” means—

(a)the penultimate date on which, otherwise than in connection with the examination, the register of the meter was ascertained; or

(b)if regulations so provide, such other date as may be determined by or under the regulations.

Installation of meters in new premises etc.E+W+S

5(1)This paragraph applies where a meter is to be used to register the quantity of gas supplied to a consumer and—E+W+S

(a)gas has not previously been conveyed by the [F12gas transporter] to the consumer’s premises;

(b)a new or substituted pipe is to be laid between the transporter’s main and the meter; or

(c)the meter is to be installed in a different position.

(2)Subject to sub-paragraph (3) below, the meter shall be installed as near as practicable to the [F13gas transporter’s] main, but within a building comprised in the premises.

(3)The meter may be installed otherwise than within a building comprised in the premises if it is installed either—

(a)in accommodation of a type and construction approved by the [F12gas transporter] by an approval given in relation to premises generally, or to any class or description of premises; or

(b)in a separate meter house or other accommodation outside a building comprised in the premises which is approved by the transporter in the case of those particular premises.

(4)If the requirements of this paragraph are not complied with, the [F12gas transporter] may refuse to connect or, as the case may be, disconnect the consumer’s premises.

Meters for disabled personsE+W+S

6E+W+SWhere, in the case of any consumer, the [F14gas transporter] or a relevant gas supplier, for the purpose of meeting the needs of a disabled person—

(a)alters the position of any gas meter which is owned by the transporter or supplier and is lent or hired to the consumer; or

(b)replaces such a meter with one which has been specially adapted,

the transporter or supplier shall not charge the consumer for the alteration or replacement.

[F15 Use of pre-payment meters]E+W+S

[F166A(1)A pre-payment meter installed by an authorised supplier through which a consumer takes his supply of gas shall not be used to recover a sum unless—E+W+S

[F17(a)the sum is owed to an authorised supplier—

(i)in respect of the supply of gas to the premises on which the meter is installed,

(ii)in respect of the provision of the meter, or

(iii)under a green deal plan (within the meaning of section 1 of the Energy Act 2011) in respect of the premises; or]

(b)the recovery of the sum in that manner is permitted by both—

(i)regulations made by the Authority; and

(ii)an agreement falling within sub-paragraph (2) below between the consumer and the person to whom the sum is owed.

(2)An agreement falls within this sub-paragraph if—

(a)the person to whom the sum is owed is a person who is authorised by regulations made by the Authority to enter into agreements falling within this sub-paragraph;

(b)the agreement permits that person to use the meter in question to recover such sums as may be specified in or determined under the agreement; and

(c)the agreement complies with the requirements specified for the purposes of this sub-paragraph by regulations made by the Authority.

(3)The sums that regulations under this paragraph may permit the recovery of through a pre-payment meter include—

(a)sums owed to a person other than an authorised supplier;

(b)sums owed in respect of premises other than the premises on which the meter is installed;

(c)sums owed in respect of matters other than the supply of gas.

(4)Before making regulations under this paragraph the Authority must consult—

[F18(a)Citizens Advice;

(aa) [F19Consumer Scotland];]

(b)all authorised suppliers;

(c)such other persons as the Authority considers appropriate.

(5)The approval of the Secretary of State is required for the making of regulations under this paragraph.]

Recovery of gas charges etc.E+W+S

7(1)Sub-paragraphs (3) and (4) below apply where—E+W+S

[F20(a)a demand in writing is made by a gas supplier for any of the relevant payments to be made by a consumer; and

(b)the consumer does not make those payments within 28 days after the making of the demand.]

[F21(1A)A payment is a relevant payment for the purposes of sub-paragraph (1) if it is due to the gas supplier from the consumer—

(a)in respect of the supply of gas to any premises of the consumer (in this paragraph referred to as “the premises”); or

(b)under a green deal plan (within the meaning of section 1 of the Energy Act 2011) in respect of the premises.]

[F22(2) Sub-paragraph (3) below also applies where—

(a)a request in writing is made by a gas supplier for the provision of a deposit by way of reasonable security for the payment of the charges due to him from a consumer in respect of the supply of gas to the consumer’s premises; and

(b) the consumer does not provide such a deposit, or agree to take his supply through a pre-payment meter, within 7 days after the making of the request.]

(3)If the supplier is a relevant supplier, he may, after giving not less than 7 days’ notice of his intention—

[F23(a)install a pre-payment meter on the premises in place of the existing meter; or

(b)cut off the supply to the premises by disconnecting the service pipe at the meter or by such other means as he thinks fit;

and the supplier may recover any expenses incurred in so doing from the consumer.]

(4)If—

(a)the supplier is not a relevant supplier but another supplier ( “the new supplier ”) is such a supplier; and

(b)the supplier has assigned to the new supplier his right to recover any of the [F24payments] due to him from the consumer,

sub-paragraph (3) above shall apply as if any reference to the supplier were a reference to the new supplier.

(5)The powers conferred by sub-paragraphs (3) and (4) above shall not be exercisable as respects any [F25payments] or deposit the amount of which is genuinely in dispute.

Deemed contracts in certain casesE+W+S

8(1)Where a gas supplier supplies gas to a consumer otherwise than in pursuance of a contract, the supplier shall be deemed to have contracted with the consumer for the supply of gas as from the time ( “the relevant time ”) when he began so to supply gas to the consumer.E+W+S

(2)Where—

(a)the owner or occupier of any premises takes a supply of gas which has been conveyed to those premises by a [F26gas transporter] in pursuance of arrangements made with the transporter by a gas shipper, or by a person authorised to make the arrangements by an exemption granted under section 6A of this Act;

(b)that supply is not made by a gas supplier, or by a person authorised to make it by an exemption granted under section 6A of this Act or an exception contained in Schedule 2A to this Act; and

(c)a supply of gas so conveyed has been previously made by a gas supplier,

the owner or occupier shall be deemed to have contracted with the appropriate supplier for the supply of gas as from the time ( “the relevant time ”) when he began to take such a supply; but nothing in this sub-paragraph shall be taken to afford a defence in any criminal proceedings.

(3)In sub-paragraph (2) above “the appropriate supplier ” means—

(a)the gas supplier who previously supplied gas to the premises or, if more than one, the gas supplier who last supplied gas to the premises; or

(b)where that supplier’s licence has been assigned generally, or has been assigned so far as relating to the premises, the person to whom the licence was so assigned; or

(c)where that supplier’s licence has been revoked on his application, or has been so restricted on his application as to exclude the premises, the gas supplier with whom that supplier made arrangements for securing continuity of supply to the premises.

F27(4). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F27(5). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F27(6). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(7)The express terms and conditions of a contract which, by virtue of sub-paragraph (1) or (2) above, is deemed to have been made shall be provided for by a scheme made under this paragraph.

(8)Each gas supplier shall make, and from time to time revise, a scheme for determining the terms and conditions which are to be incorporated in the contracts which, by virtue of sub-paragraph (1) or (2) above, are to be deemed to have been made; [F28but this sub-paragraph shall not apply in any case where it is reasonably expected that neither of those sub-paragraphs will apply].

(9)The terms and conditions so determined may include terms and conditions for enabling the gas supplier to determine, in any case where the meter is not read immediately before the relevant time, the number of therms or kilowatt hours which are to be treated as supplied to the consumer, or taken by the owner or occupier of the premises, during the period beginning with the relevant time and ending with—

(a)the time when the meter is first read after the relevant time; or

(b)the time when the supplier ceases to supply gas to the consumer, or the owner or occupier ceases to take a supply of gas,

whichever is the earlier.

(10)A scheme under this paragraph may make different provisions for different cases or classes of cases, or for different areas, determined by, or in accordance with, the provisions of the scheme.

(11)As soon as practicable after a gas supplier makes a scheme under this paragraph, [F29or a revision of such a scheme], he shall—

(a)publish, in such manner as he considers appropriate for bringing it to the attention of persons likely to be affected by it, a notice stating the effect of the scheme [F30or revision];

(b)send a copy of the scheme [F30or revision] to the Director [F31, to Citizens Advice and to [F32Consumer Scotland]]; and

(c)if so requested by any other person, send such a copy to that person without charge to him.

Supplies of gas illegally takenE+W+S

9(1)Where any person takes a supply of gas which is in the course of being conveyed by a [F33gas transporter], the transporter shall be entitled to recover from that person the value of the gas so taken.E+W+S

(2)Where—

(a)any person at premises which have been reconnected in contravention of paragraph 11(1) below takes a supply of gas which has been conveyed to those premises by the [F33gas transporter]; and

(b)the supply is taken otherwise than in pursuance of a contract made with a gas supplier, or deemed to have been made with such a supplier by virtue of paragraph 8 above or paragraph 19 of Schedule 5 to the Gas Act 1995,

the transporter shall be entitled to recover from that person the value of the gas so taken.

(3)Each [F33gas transporter] shall make, and from time to time revise, a scheme providing for the manner in which, and the persons by whom, the number of therms or kilowatt hours represented by a supply of gas taken in such circumstances as are mentioned in sub-paragraph (1) or (2) above is to be determined for the purposes of that sub-paragraph.

(4)Sub-paragraphs (10) and (11) of paragraph 8 above shall apply in relation to a scheme under this paragraph as they apply in relation to a scheme under that paragraph.

(5)In this paragraph—

• “gas supplier ” includes a person authorised to supply gas by an exemption granted under section 6A of this Act or an exception contained in Schedule 2A to this Act;

• “value ”, in relation to any gas taken in such circumstances as are mentioned in sub-paragraph (1) or (2) above, means the amount which, if the gas had been taken in such circumstances as are mentioned in sub-paragraph (2) of paragraph 8 above, could reasonably be expected to have been payable in respect of the gas under a contract deemed to have been made by virtue of that sub-paragraph.

Injury to gas fittings and interference with metersE+W+S

10(1)If any person intentionally or by culpable negligence—E+W+S

(a)injures or allows to be injured any gas fitting provided by a [F34gas transporter] or gas supplier, or any service pipe by which any premises are connected to such a transporter’s main;

(b)alters the index to any meter used for measuring the quantity of gas conveyed or supplied by such a transporter or supplier; or

(c)prevents any such meter from duly registering the quantity of gas conveyed or supplied,

he shall be guilty of an offence and liable on summary conviction to a fine not exceeding level 3 on the standard scale.

(2)In the case of any offence under sub-paragraph (1) above, the transporter or supplier may disconnect the premises of, or cut off the supply of gas to, the person so offending.

(3)Where any person is prosecuted for an offence under sub-paragraph (1)(b) or (c) above, the possession by him of artificial means for causing an alteration of the index of the meter or, as the case may be, for preventing the meter from duly registering shall, if the meter was in his custody or under his control, be prima facie evidence that the alteration or prevention was intentionally caused by him.

Restoration of supply without consentE+W+S

11(1)Where a consumer’s premises have been disconnected by a [F35gas transporter], or a supply of gas to a consumer’s premises has been cut off by a gas supplier, otherwise than in the exercise of a power conferred by—E+W+S

(a)paragraph 20, 21 or 22 below;

(b)regulations under section 18(2) or 18A(1) of this Act; or

(c)regulations under section 15 of the M4Health and Safety at Work etc. Act 1974 (health and safety regulations),

no person shall, without the relevant consent, reconnect the premises or restore the supply.

(2)If any person acts in contravention of sub-paragraph (1) above—

(a)he shall be guilty of an offence and liable on summary conviction to a fine not exceeding level 3 on the standard scale; and

(b)the transporter or supplier may again disconnect the premises or, as the case may be, cut off the supply.

(3)In this paragraph “the relevant consent ” means—

(a)where the premises are reconnected, the consent of the [F35gas transporter] to whose main the reconnection is made;

(b)where the supply is restored, the consent of the supplier who cut off the supply, or the consent of a person who is or is about to become a relevant gas supplier.

Failure to notify connection or disconnection of service pipeE+W+S

12(1)No person shall connect any meter with a service pipe through which gas is conveyed to any premises by a [F36gas transporter], or disconnect any meter from any such pipe, unless he has given—E+W+S

(a)in a case where gas is supplied to the premises by a relevant gas supplier whose name and address are known to him, to the supplier; and

(b)in any other case, to the transporter,

so that it is received by the supplier or transporter at least 48 hours before he does so, notice in the prescribed form of his intention to do so.

(2)Subject to sub-paragraph (3) below, a notice under sub-paragraph (1) above shall contain—

(a)details of the time and place of the proposed connection or disconnection; and

(b)such other information as may be prescribed.

(3)In so far as it is not reasonably practicable for a notice under sub-paragraph (1) above to contain any information required by sub-paragraph (2)(b) above, it shall be a sufficient compliance with that requirement if the information is given to the relevant gas supplier or, as the case may be, the [F36gas transporter] within 48 hours after the connection or disconnection is effected.

(4)If any person acts in contravention of this paragraph, he shall be guilty of an offence and liable on summary conviction to a fine not exceeding level 3 on the standard scale.

Failure to notify disconnection of meterE+W+S

13(1)Subject to sub-paragraph (2) below, this paragraph applies where any meter through which gas has been supplied to any premises is completely disconnected, that is to say, is disconnected both from the service pipe and from all other pipes within the premises.E+W+S

(2)This paragraph does not apply where the meter—

(a)is disconnected for the purposes of an examination under section 17 of this Act or an inspection under paragraph 3(5) above; or

(b)is disconnected for a particular purpose (whether repair or repositioning of the meter, detection of a gas leak or otherwise) and is intended to be reconnected.

(3)Except in so far as it is not reasonably practicable for him to do so, the person making the disconnection shall—

(a)ascertain the name and address of the owner of the meter; and

(b)inform that owner of the disconnection and of the address at which the meter will be available for collection.

(4)If any person fails to comply with sub-paragraph (3) above, he shall be guilty of an offence and liable on summary conviction to a fine not exceeding level 2 on the standard scale.

Failure to maintain shipping arrangementsE+W+S

14(1)Where—E+W+S

(a)any arrangements for the conveyance of gas by a [F37gas transporter] to a consumer’s premises at a rate reasonably expected to exceed 2,500 therms a year have been made by a gas shipper, or by a person authorised to make the arrangements by an exemption granted under section 6A of this Act; and

(b)those arrangements have ceased to operate and have not been replaced by arrangements made for the like purpose,

the transporter may, after giving 21 days’ notice to the relevant persons, disconnect the premises.

(2)The relevant persons for the purposes of sub-paragraph (1) above are—

(a)the occupier, or the owner of the premises if they are unoccupied; and

(b)any gas supplier who, to the knowledge of the transporter, has contracted to supply gas to the premises.

(3)The notice required to be given by sub-paragraphs (1) and (2)(a) above may, in the case of unoccupied premises the owner of which is unknown to the [F37gas transporter] and cannot be ascertained after diligent inquiry, be given by affixing it upon a conspicuous part of the premises.

Maintenance etc. of service pipesE+W+S

15(1)A [F38gas transporter] shall carry out any necessary work of maintenance, repair or renewal of any service pipe by which gas is conveyed by him to a consumer’s premises, whether or not the service pipe was supplied and laid at the transporter’s expense.E+W+S

(2)The cost of any work carried out in accordance with sub-paragraph (1) above shall be defrayed as follows—

(a)if the work was made necessary by any intentional act or culpable negligence of the consumer and the transporter so requires, by the consumer;

(b)in any other case, by the transporter.

Alterations etc. of burners on change of calorific valueE+W+S

16(1)This paragraph applies where there is a change in the properties of any gas which is conveyed by a [F39gas transporter] to a consumer’s premises at a rate not exceeding 75,000 therms a year.E+W+S

(2)It shall be the duty of the public gas transporter to take without charge to the consumer such steps as may be necessary to alter, adjust or replace the burners in appliances at the premises which burn that gas in such manner as to secure that the gas can be burned with safety and efficiency.

Use of antifluctuators and valvesE+W+S

17(1)Where a consumer uses gas for working or supplying a compressor, that is to say—E+W+S

(a)an engine, gas compressor or other similar apparatus; or

(b)any apparatus liable to produce in any main of the [F40gas transporter] a pressure less than atmospheric pressure,

he shall, if so required by the transporter by notice, fix in a suitable position and keep in use an appliance provided by him which will effectually prevent F41. . . inconvenience F41. . . being caused to persons by reason that he and they are supplied with gas conveyed through the same system.

(2)Where a consumer uses for or in connection with the consumption of gas—

(a)any air at high pressure ( “compressed air ”); or

(b)any gaseous substance not conveyed by the [F40gas transporter] ( “extraneous gas ”),

he shall, if so required [F42other than for the purpose of preventing danger]by the transporter by notice, fix in a suitable position and keep in use an appliance provided by him which will effectually prevent the admission of the compressed air or extraneous gas into the service pipe or into any main through which gas is conveyed by the transporter.

(3)Where a person is required by this paragraph to keep in use any appliance, he shall at his own expense keep it in proper order and repair, and repair, renew or replace it if it is not in proper order or repair.

(4)A consumer shall not be entitled to use a compressor, or any apparatus for using compressed air or extraneous gas, unless he has given to the [F40gas transporter] not less than 14 days’ notice of his intention to do so; but this sub-paragraph shall not apply to the use of any compressor or apparatus which was lawfully in use immediately before the appointed day.

(5)If a consumer makes default in complying with any provision of this paragraph [F43or regulation 38 of the Gas Safety (Installation and Use) Regulations 1998 or directions made thereunder], the [F40gas transporter] may disconnect the consumer’s premises.

(6)The [F40gas transporter] shall have power to disconnect, remove, test and replace any appliance which a consumer is required by this paragraph [F43or regulation 38 of the Gas Safety (Installation and Use) Regulations 1998 or directions made thereunder]to keep in use; and any expenses incurred by the transporter under this sub-paragraph shall, if the appliance is found in proper order and repair, be paid by the transporter, but otherwise shall be paid by the consumer.

Improper use of gasE+W+S

18E+W+SIf a consumer improperly uses or deals with gas so as to interfere with the efficient conveyance of gas by the [F44gas transporter] (whether to the consumer or to any other person), the transporter may, if he thinks fit, disconnect the consumer’s premises.

No obligation to restore supply where consumer in defaultE+W+S

19(1)This paragraph applies where—E+W+S

(a)a consumer’s premises have been disconnected by a [F45gas transporter] in pursuance of paragraph 2(2)(a), 3(2)(a), 5(4), 10(2), 11(2)(b), 14(1), 17(5) or 18 above; or

(b)a supply of gas to a consumer’s premises has been cut off by a gas supplier in pursuance of paragraph 2(2)(b), 3(2)(b), 7(3) or (4), 10(2) or 11(2)(b) above.

(2)The transporter or supplier shall not be under any obligation to reconnect the consumer’s premises or, as the case may be, resume the supply of gas to the consumer’s premises until the consumer either is no longer an owner or occupier of the premises or—

(a)has made good the default, or remedied the matter, in consequence of which the premises were disconnected or the supply was cut off; and

(b)has paid the reasonable expenses of disconnecting and reconnecting the premises or, as the case may be, of cutting off the supply and restoring the supply.

(3)In this paragraph “consumer ”, in relation to a disconnection or cutting off under paragraph 11(2)(b) above, means—

(a)the owner of the premises at the time when the reconnection was made, or the supply was restored, without the relevant consent—

(i)if the premises were unoccupied at that time, or

(ii)if that reconnection or restoration of supply was made by him or on his behalf; and

(b)the occupier of the premises at that time in any other case;

and in this sub-paragraph “relevant consent ” has the same meaning as in paragraph 11 above.

Notified escapes of gasE+W+S

F4620E+W+S. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Suspected escapes of gasE+W+S

F4721E+W+S. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Entry for preventing escapes of gas etc.E+W+S

F4822E+W+S. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Entry during continuance of supplyE+W+S

23(1)Any officer authorised by a [F49gas transporter] may at all reasonable times, on the production of some duly authenticated document showing his authority, enter a consumer’s premises for the purpose of—E+W+S

(a)inspecting gas fittings;

(b)ascertaining the quantity of gas conveyed to the premises;

(c)exercising the power conferred on the transporter by paragraph 3(5) above;

(d)performing the duty imposed on the transporter by paragraph 15 or 16 above;

(e)exercising the power conferred on the transporter by paragraph 17(6) above; or

(f)in the case of premises where the transporter has reason to believe that a compressor or compressed air or extraneous gas is being used, inspecting the premises and ascertaining whether the provisions of paragraph 17 above are being complied with.

(2)Any officer authorised by a relevant gas supplier or relevant gas shipper may at all reasonable times, on the production of some duly authenticated document showing his authority, enter a consumer’s premises for the purpose of—

(a)inspecting gas fittings;

(b)ascertaining the quantity of gas supplied or conveyed to the premises; or

[F50(c)exercising a power conferred by paragraph 3(5) or 7(3)(a) (and testing gas fittings, and making any adjustments required for their safe operation, after the exercise of the power).]

(3)In this paragraph “compressor ”, “compressed air ” and “extraneous gas ” have the same meanings as in paragraph 17 above, and any reference to a relevant gas supplier or relevant gas shipper includes a reference to a person who has been or is about to become such a supplier or shipper.

Entry on discontinuance of supplyE+W+S

24(1)This paragraph applies where—E+W+S

(a)a [F51gas transporter] or gas supplier is authorised by any provision of this Act to disconnect any premises, or, as the case may be, to cut off or discontinue the supply of gas to any premises;

(b)a person occupying premises supplied with gas by a gas supplier ceases to require a supply of gas; or

(c)a person entering into occupation of any premises previously supplied with gas by a gas supplier does not take a supply of gas.

(2)Any officer authorised by the [F51gas transporter] or gas supplier, after 24 hours’ notice to the occupier, or to the owner of the premises if they are unoccupied, may at all reasonable times, on production of some duly authenticated document showing his authority, enter the premises for the purpose of—

(a)disconnecting the premises, or cutting off or discontinuing the supply of gas to the premises; or

(b)removing any meter or other gas fitting owned by the transporter or supplier.

(3)The notice required to be given by sub-paragraph (2) above may, in the case of unoccupied premises the owner of which is unknown to the [F51gas transporter] or gas supplier and cannot be ascertained after diligent inquiry, be given by affixing it upon a conspicuous part of the premises not less than 48 hours before the premises are entered.

Entry following discontinuance of supplyE+W+S

25(1)This paragraph applies where a consumer’s premises have been disconnected by a [F52gas transporter], or a supply of gas to a consumer’s premises has been cut off by a gas supplier, otherwise than in the exercise of a power conferred by—E+W+S

(a)paragraph 20, 21 or 22 above;

(b)regulations under section 18(2) or 18A(1) of this Act; or

(c)regulations under section 15 of the M5Health and Safety at Work etc. Act 1974 (health and safety regulations).

(2)Any officer authorised by the [F52gas transporter] or gas supplier may at all reasonable times, on production of some duly authenticated document showing his authority, enter the premises for the purpose of ascertaining whether the premises have been reconnected, or the supply has been restored, without the relevant consent.

(3)In this paragraph “the relevant consent ” has the same meaning as in paragraph 11 above.

Entry for removing fittings and metersE+W+S

26(1)This paragraph applies where—E+W+S

(a)a person occupying premises supplied with gas through a meter or other gas fitting owned by a [F53gas transporter] or gas supplier ceases to take a supply through that meter or fitting; or

(b)a person entering into occupation of any premises previously supplied with gas through a meter or other gas fitting so owned does not take a supply of gas through that meter or fitting.

(2)Any officer authorised by the [F53gas transporter] or gas supplier, after 24 hours’ notice to the occupier, or to the owner of the premises if they are unoccupied, may at all reasonable times, on production of some duly authenticated document showing his authority, enter the premises for the purpose of removing the meter or other gas fitting.

(3)Sub-paragraph (3) of paragraph 24 above applies for the purposes of this paragraph as it applies for the purposes of that paragraph.

Entry for replacing, repairing or altering pipesE+W+S

27(1)Any officer authorised by a [F54gas transporter], after 7 clear days’ notice to the occupier of any premises, or to the owner of any premises which are unoccupied, may at all reasonable times, on production of some duly authenticated document showing his authority, enter the premises for the purpose of—E+W+S

(a)placing a new pipe in the place of any existing pipe which has already been lawfully placed; or

(b)repairing or altering any such existing pipe.

(2)The notice required to be given by sub-paragraph (1) above may, in the case of unoccupied premises the owner of which is unknown to the [F54gas transporter] and cannot be ascertained after diligent inquiry, be given by affixing it upon a conspicuous part of the premises.

(3)In cases of emergency arising from defects in any pipes entry may be made under sub-paragraph (1) above without the notice required to be given by that sub-paragraph, but notice of the entry and the justification for it shall then be given as soon as possible after the occurrence of the emergency.

Provisions as to powers of entryE+W+S

28(1)No officer shall be authorised by a [F55gas transporter], gas supplier or gas shipper to exercise any powers of entry conferred by this Schedule unless—E+W+S

(a)the transporter, supplier or shipper has taken all reasonable steps to ensure that he is a fit and proper person to exercise those powers; or

(b)in cases of emergency, those powers are powers conferred by paragraph 22 above.

(2)Where in pursuance of any powers of entry conferred by this Schedule, entry is made on any premises by an officer authorised by a [F55gas transporter], gas supplier or gas shipper—

(a)the officer shall ensure that the premises are left no less secure by reason of the entry; and

(b)the transporter, supplier or shipper shall make good, or pay compensation for, any damage caused by the officer, or by any person accompanying him in entering the premises, in taking any action therein authorised by this Schedule, or in making the premises secure.

(3)Any officer exercising powers of entry conferred by this Schedule may be accompanied by such persons as may be necessary or expedient for the purpose for which the entry is made, or for the purposes of sub-paragraph (2) above.

(4)If any person intentionally obstructs any officer exercising powers of entry conferred by this Schedule, he shall be guilty of an offence and liable on summary conviction to a fine not exceeding level 3 on the standard scale.

(5)The M6Rights of Entry (Gas and Electricity Boards) Act 1954 (entry under a justice’s warrant) shall apply in relation to any powers of entry conferred by this Schedule.

Gas meters and fittings not to be subject to distressE+W+S

29(1)Any gas meter which is connected to a service pipe, and any gas fitting in a consumer’s premises which is owned by a [F56gas transporter] or gas supplier and is marked or impressed with a sufficient mark or brand indicating its owner—E+W+S

(a)shall not be subject to distress or be liable [F57to be taken control of under Schedule 12 to the Tribunals, Courts and Enforcement Act 2007, or] to be taken in execution under process of any court or any proceedings in bankruptcy against the person in whose possession it may be; and

(b)shall be deemed not to be a landlord’s fixture, notwithstanding that it may be fixed or fastened to any part of the premises in which it may be situated.

(2)In the application of sub-paragraph (1)(a) above to Scotland, for the word “distress ” and the words “in bankruptcy against ” there shall be substituted respectively the word [F58attachment] and the words “for the sequestration of the estate of ”.]

Section 9(3).

SCHEDULE 3U.K. Acquisition of Land by Public Gas Suppliers

Part IE+W+S Powers of Acquisition Etc.

1(1)The Secretary of State, after consultation with the Director, may authorise a [F59gas transporters] to purchase compulsorily any land.E+W+S

(2)In sub-paragraph (1) above “land” includes any right over land; and the power of the Secretary of State under that sub-paragraph includes power to authorise the acquisition of rights over land by creating new rights as well as acquiring existing ones.

2(1)This paragraph applies to land which—E+W+S

(a)for the purposes of the M7Acquisition of Land Act 1981, is or forms part of a common, open space or a fuel or field garden allotment; or

(b)for the purposes of the M8Acquisition of Land (Authorisation Procedure) (Scotland) Act 1947, is or forms part of a common or open space.

(2)Where for any purpose a [F60gas transporters] has acquired, or proposes to acquire, any land to which this paragraph applies, or any right over any such land, and other land is required for the purpose of being given in exchange for the land or right in question, the Secretary of State may authorise [F61the transporter] to purchase that other land compulsorily, or he may acquire it by agreement.

3E+W+SWhere a [F62gas transporters] has acquired any land by virtue of paragraph 1 above, he shall not dispose of that land or of any interest in or right over it except with the consent of the Director.

Part IIE+W+S Procedure, Compensation Etc. (England and Wales)

Application of Acquisition of Land Act 1981 generallyE+W+S

4E+W+SThe Acquisition of Land Act 1981 shall apply to a compulsory purchase by a [F63gas transporter’s] of land or rights in England and Wales, subject, in the case of a compulsory acquisition of a right by the creation of a new right, to Schedule 3 to that Act.

New rights: general adaptation of Compulsory Purchase Act 1965E+W+S

5E+W+SThe M9Compulsory Purchase Act 1965 shall have effect with the modifications necessary to make it apply to a [F64gas transporter’s] compulsory acquisition of a right in England and Wales by the creation of a new right as it applies to the compulsory acquisition of land, so that, in appropriate contexts, references in that Act to land are to be read as referring, or as including references, to the right acquired or to be acquired, or to land over which the right is or is to be exercisable, according to the requirements of the particular context.

New rights: specific adaptations of Act of 1965E+W+S

6E+W+SWithout prejudice to the generality of paragraph 5 above, Part I of the said Act of 1965 shall apply in relation to a [F65gas transporter’s] compulsory acquisition of a right in England and Wales by the creation of a new right with the modifications specified in paragraphs 7 to 12 below.

7E+W+SFor section 7 of that Act (measure of compensation) there shall be substituted the following section—

“7In assessing the compensation to be paid by the acquiring authority under this Act regard shall be had not only to the extent (if any) to which the value of the land over which the right is to be acquired is depreciated by the acquisition of the right but also to the damage (if any) to be sustained by the owner of the land by reason of its severance from other land of his, or injuriously affecting that other land by the exercise of the powers conferred by this or the special Act.”

[F668E+W+SSection 8(1) of the Compulsory Purchase Act 1965 has effect as if references to acquiring land were to acquiring a right in the land, and Schedule 2A to that Act is to be read as if, for that Schedule, there were substituted—

“SCHEDULE 2AE+W+SCounter-notice requiring purchase of land

IntroductionE+W+S

1(1)This Schedule applies where an acquiring authority serve a notice to treat in respect of a right over the whole or part of a house, building or factory.

(2)But see section 2A of the Acquisition of Land Act 1981 (under which a compulsory purchase order can exclude from this Schedule land that is 9 metres or more below the surface).

2In this Schedule “house” includes any park or garden belonging to a house.

Counter-notice requiring purchase of landE+W+S

3A person who is able to sell the house, building or factory (“the owner”) may serve a counter-notice requiring the authority to purchase the owner's interest in the house, building or factory.

4A counter-notice under paragraph 3 must be served within the period of 28 days beginning with the day on which the notice to treat was served.

Response to counter-noticeE+W+S

5On receiving a counter-notice the acquiring authority must decide whether to—

(a)withdraw the notice to treat,

(b)accept the counter-notice, or

(c)refer the counter-notice to the Upper Tribunal.

6The authority must serve notice of their decision on the owner within the period of 3 months beginning with the day on which the counter-notice is served (“the decision period”).

7If the authority decide to refer the counter-notice to the Upper Tribunal they must do so within the decision period.

8If the authority do not serve notice of a decision within the decision period they are to be treated as if they had served notice of a decision to withdraw the notice to treat at the end of that period.

9If the authority serve notice of a decision to accept the counter-notice, the compulsory purchase order and the notice to treat are to have effect as if they included the owner's interest in the house, building or factory.

Determination by Upper TribunalE+W+S

10On a referral under paragraph 7 the Upper Tribunal must determine whether the acquisition of the right would—

(a)in the case of a house, building or factory, cause material detriment to the house, building or factory, or

(b)in the case of a park or garden, seriously affect the amenity or convenience of the house to which the park or garden belongs.

11In making its determination, the Upper Tribunal must take into account—

(a)the effect of the acquisition of the right,

(b)the proposed use of the right, and

(c)if the right is proposed to be acquired for works or other purposes extending to other land, the effect of the whole of the works and the use of the other land.

12If the Upper Tribunal determines that the acquisition of the right would have either of the consequences described in paragraph 10 it must determine how much of the house, building or factory the authority ought to be required to take.

13If the Upper Tribunal determines that the authority ought to be required to take some or all of the house, building or factory the compulsory purchase order and the notice to treat are to have effect as if they included the owner's interest in that land.

14(1)If the Upper Tribunal determines that the authority ought to be required to take some or all of the house, building or factory, the authority may at any time within the period of 6 weeks beginning with the day on which the Upper Tribunal makes its determination withdraw the notice to treat in relation to that land.

(2)If the acquiring authority withdraws the notice to treat under this paragraph they must pay the person on whom the notice was served compensation for any loss or expense caused by the giving and withdrawal of the notice.

(3)Any dispute as to the compensation is to be determined by the Upper Tribunal.”]

9E+W+SThe following provisions of that Act (being provisions stating the effect of a deed poll executed in various circumstances where there is no conveyance by persons with interests in the land)—

• section 9(4) (refusal by owners to convey);

• Schedule 1, paragraph 10(3) (owners under incapacity);

• Schedule 2, paragraph 2(3) (absent and untraced owners); and

• Schedule 4, paragraphs 2(3) and 7(2) (common land),

shall be so modified as to secure that, as against persons with interests in the land which are expressed to be overridden by the deed, the right which is to be compulsorily acquired is vested absolutely in the acquiring authority.

10E+W+SSection 11 of that Act (powers of entry) shall be so modified as to secure that, as from the date on which the acquiring authority have served notice to treat in respect of any right, they have power, exercisable in the like circumstances and subject to the like conditions, to enter for the purpose of exercising that right (which shall be deemed for this purpose to have been created on the date of service of the notice); and sections 12 (penalty for unauthorised entry) and 13 (entry on [F67enforcement officer's or sheriff's warrant] in the event of obstruction) shall be modified correspondingly.

11E+W+SSection 20 of that Act (protection for interests of tenants at will etc.) shall apply with the modifications necessary to secure that persons with such interests as are mentioned in that section are compensated in a manner corresponding to that in which they would be compensated on a compulsory acquisition of that land, but taking into account only the extent (if any) of such interference with such an interest as is actually caused, or likely to be caused, by the exercise of the right in question.

12E+W+SSection 22 of that Act (protection of acquiring authority’s possession where by inadvertence an estate, right or interest has not been got in) shall be so modified as to enable the acquiring authority, in circumstances corresponding to those referred to in that section, to continue entitled to exercise the right acquired, subject to compliance with that section as respects compensation.

New rights: compensationE+W+S

13E+W+SThe enactments in force in England and Wales with respect to compensation for the compulsory purchase of land shall apply with the necessary modifications as respects compensation in the case of a [F68gas transporter’s] compulsory acquisition of a right by the creation of a new right as they apply to compensation on the compulsory purchase of land and interests in land.

Part IIIE+W+S Procedure, Compensation Etc. (Scotland)

Application of Acquisition of Land (Authorisation Procedure) (Scotland) Act 1947 generallyE+W+S

14E+W+SThe M10Acquisition of Land (Authorisation Procedure) (Scotland) Act 1947 shall apply to the compulsory purchase by a [F69public gas transporter] of land or rights in Scotland as if [F70the transporter] were a local authority within the meaning of that Act, and as if this Act had been in force immediately before the commencement of that Act.

New rights: general application of Act of 1947 and incorporated enactmentsE+W+S

15E+W+SThe enactments incorporated with this Act by virtue of Part I of Schedule 2 to the said Act of 1947 and that Act shall have effect with the modifications necessary to make them apply to a [F71public gas transporter’s] compulsory acquisition of a right in Scotland by the creation of a new right as they apply to the compulsory acquisition of land, so that, in appropriate contexts, references in those enactments and that Act to land are to be read as referring, or as including references, to the right acquired or to be acquired, or to land over which the right is or is to be exercisable, according to the requirements of the particular context.

New rights: specific adaptations of Act of 1947E+W+S

16E+W+SWithout prejudice to the generality of paragraph 15 above, Part III of Schedule 1 to the said Act of 1947 (requirement of special parliamentary procedure, and other special provisions, in the case of acquisition of certain descriptions of land) shall apply in relation to a [F72public gas transporter’s] compulsory acquisition of a right in Scotland by the creation of a new right with the modifications specified in paragraphs 17 to 20 below.

17E+W+SIn paragraph 9 of that Schedule (compulsory purchase affecting land of the National Trust for Scotland) for references to the compulsory purchase of land there shall be substituted references to the compulsory acquisition of rights over land.

18E+W+SIn paragraph 10 of that Schedule (land of statutory undertakers)—

(a)for the words “land comprised in the order” there shall be substituted the words “land over which a right is to be acquired by virtue of the order”;

(b)for the words “purchase of” there shall be substituted the words “acquisition of a right over”;

(c)for the words “it can be purchased and not replaced” there shall be substituted the words “the right can be acquired”; and

(d)for sub-paragraph (ii) there shall be substituted the following sub-paragraph—

“(ii)that any detriment to the carrying on of the undertaking, in consequence of the acquisition of the right, can be made good by the undertakers by the use of other land belonging to, or available for acquisition by, them”.

19E+W+SIn paragraph 11 of that Schedule (common or open space), for sub-paragraph (1) there shall be substituted the following sub-paragraph—

“(1)In so far as a compulsory purchase order authorises the acquisition of a right over land forming part of a common or open space, it shall be subject to special parliamentary procedure unless the Secretary of State is satisfied—

(a)that the land, when burdened with that right, will be no less advantageous to those persons in whom it is vested and other persons, if any, entitled to rights of common or other rights, and to the public, than it was before; or

(b)that there has been or will be given in exchange for the right additional land which will as respects the persons in whom there is vested the land over which the right is to be acquired, the persons, if any, entitled to rights of common or other rights over that land, and the public, be adequate to compensate them for the disadvantages which result from the acquisition of the right, and that the additional land has been or will be vested in the persons in whom there is vested the land over which the right is to be acquired, and subject to the like rights, trusts and incidents as attach to that land apart from the compulsory purchase order; or

(c)that the land affected by the right to be acquired does not exceed 250 square yards in extent, and that the giving of other land in exchange for the right is unnecessary, whether in the interests of the persons, if any, entitled to rights of common or other rights or in the interests of the public,

and certifies accordingly.”

F7320E+W+S. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

21E+W+SParagraph 10 above shall have effect in relation to the said Act of 1947 with the substitution of a reference to paragraph 3(1) of the Second Schedule to that Act for the reference to section 11 of the M11Compulsory Purchase Act 1965, and with the omission of the words from “and sections” to the end of the paragraph.

22E+W+SFor paragraph 4 of the Second Schedule to the said Act of 1947 (protection for owner against severance of property) there shall be substituted the provisions substituted by paragraph 8 of this Schedule for section 8(1) of the said Act of 1965, and any reference in those provisions to the [F74Upper Tribunal] shall be construed as a reference to the Lands Tribunal for Scotland.

Restrictions on application of paragraphs 15 to 20 aboveE+W+S

23E+W+SSo much of paragraph 15 above as relates to the said Act of 1947, and paragraphs 16 to 20 above, shall not apply to any compulsory purchase to which, by virtue of section 12 or 13 of the M12Gas Act 1965, Part I of Schedule 4 to that Act applies.

New Rights: specific adaptions of Lands Clauses Consolidation (Scotland) Act 1845E+W+S

24E+W+SFor section 61 of the M13Lands Clauses Consolidation (Scotland) Act 1845 (estimation of compensation) there shall be substituted the following section—

“61In estimating the purchase money or compensation to be paid by the promoters of the undertaking in the Special Act, in any of the cases aforesaid, regard shall be had not only to the extent (if any) to which the value of the land over which the right is to be acquired is depreciated by the acquisition of the right, but also to the damage (if any) to be sustained by the owner of the land by reason of its severance from other land of his, or injuriously affecting that other land by the exercise of the powers conferred by this or the Special Act.”

25E+W+SThe following provisions of that Act (being provisions stating the effect of a notarial instrument or of a disposition executed in various circumstances where there is no conveyance by persons with interests in the land)—

• section 74 (failure by owner to convey);

• section 76 (refusal to convey or show title or owner cannot be found);

• section 98 (vesting of common land),

shall be so modified as to secure that, as against persons with interests in the land over which the right is to be compulsorily acquired such right is vested absolutely in the promoters of the undertaking.

26E+W+SParagraph 11 above shall have effect in relation to that Act with the substitution of a reference to sections 114 and 115 thereof for the reference to section 20 of the M14Compulsory Purchase Act 1965.

27E+W+SParagraph 12 above shall have effect in relation to that Act with the substitution of a reference to sections 117 and 118 thereof for any reference to section 22 of the said Act of 1965.

New rights: compensationE+W+S

28E+W+SParagraph 13 above shall have effect in relation to Scotland with the substitution of. “ Scotland ” for “England and Wales”.

29E+W+SThis Part of this Schedule shall extend to Scotland only.

SCHEDULE 4E+W+S Power of [F75Gas Transporters] to Break Up Streets, Bridges Etc.

1(1)Subject to the following provisions of this Schedule, a [F76gas transporter] may execute the following kinds of works, that is to say—E+W+S

[F77(a)placing pipes, conduits, service pipes, cables, sewers and other works, and pressure governors, ventilators and other apparatus, in or under any street; and

(b)from time to time repairing, altering or removing any such works or apparatus placed in or under any street (whether by him or by any other person).]

(2)Subject as aforesaid, a [F76gas transporter] may execute any works requisite for or incidental to the purposes of any works falling within sub-paragraph (1) above, including for those purposes—

(a)opening or breaking up any [F78street] or any sewers, drains or tunnels within or underany [F78street]; and

(b)removing or using all earth and materials in or under any [F78street].

(3)A [F76gas transporter] shall do as little damage as possible in the exercise of the powers conferred by this paragraph and shall make compensation for any damage done in the exercise of those powers.

[F79(4)The Secretary of State shall by regulations provide that, in such cases and to such extent as may be provided by the regulations, a public gas transporter shall pay, by way of compensation for any loss sustained by any person in consequence of the exercise of those powers, such sum as may be determined in accordance with the regulations.

(5)No regulations may be made under sub-paragraph (4) above which amend, or re-enact with modifications, regulations previously made under that sub-paragraph.]

2(1)The powers of a [F80gas transporter] under paragraph 1 above shall include power to erect in any street one or more structures for housing any apparatus, but only with the consent, which shall not be unreasonably withheld, of the [F81street authority].E+W+S

(2)Any question whether or not consent to the erection of such a structure is unreasonably withheld shall be determined by a single arbitrator to be appointed by the parties or, in default of agreement, appointed by the Director.

(3)For the purposes of this paragraph the withholding of consent shall, to the extent that it is based on the ground that the structure ought to be erected elsewhere than in a street, be treated as unreasonable if [F82the transporter] either that there is no reasonably practicable alternative to erecting it in a street, or that all such alternatives would, on the balance of probabilities, involve greater danger to life or property.

3(1)Subject to sub-paragraph (2) below, nothing in paragraph 1 above shall empower a [F83gas transporter] to lay down or place any pipe or other works into, through or against any building, or in any land not dedicated to the public use.E+W+S

(2)A [F83gas transporter] may exercise the powers conferred by paragraph 1 above in relation to any street which has been laid out but not dedicated to the public use [F84only for the purpose of][F85conveying] gas to any premises which abut on the street.

4(1)Except in cases of emergency arising from defects in any pipes or other works, a [F86street] which—E+W+S

(a)does not constitute for the purposes of the M15Highways Act 1980 a highway or part of a highway maintainable at the public expense; and

(b)is under the control or management of, or maintainable by, any railway authority or navigation authority,

shall not be opened or broken up under paragraph 1 above except with the consent, which shall not be unreasonably withheld, of that authority.

(2)Any question whether or not consent to the opening or breaking up of such a [F86street] is unreasonably withheld shall be determined by a single arbitrator to be appointed by the parties or, in default of agreement, appointed by the Director.

5F87(1). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .E+W+S