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Lord Fraser of Carmyllie moved Amendments Nos. 34 to 38:


Page 16, line 28, after ("facility") insert ("or any associate of his").
Page 16, line 31, after ("who") insert ("is not such an associate and").
Page 17, line 10, at end insert—
("( ) Section 22 of the 1986 Act (effect of directions) shall apply in relation to any directions under this section as it applies in relation to any directions under section 19 or 21(1) of that Act; and in subsection (4) of that section as applied by this subsection, the reference to the Director shall be construed as a reference to the Secretary of State.").
Page 17, line 12, leave out ("has the same meaning as in") and insert ("means any substance which is or (if it were in a gaseous state) would be gas within the meaning of").
Page 17, line 33, at end insert—
("( ) For the purposes of this section a person is an associate of the owner of a gas processing facility if—
(a) both of them are companies; and
(b) one of the companies has control of the other, or both are under the control of the same person or persons;
and subsections (2) to (5) of section 416 of the Income and Corporation Taxes Act 1988 shall apply for the purposes of paragraph (b) above as they apply for the purposes of Part XI of that Act.").

The noble and learned Lord said: My Lords, after that interesting debate, we turn to a series of technical amendments. I beg to move Amendments Nos. 34 to 38 en bloc.

On Question, amendments agreed to.

Clause 16 [Minor and consequential amendment]:

Lord Fraser of Carmyllie moved Amendment No. 39:


Page 18, line 20, leave out from first ("in") to ("as") in line 21 and insert—
("(a) any Act passed before the appointed day which is not a public general Act; or
(b) any subordinate legislation (within the meaning of the Interpretation Act 1978) made before that day,").

The noble and learned Lord said: My Lords, this is also a technical amendment. I beg to move.

On Question, amendment agreed to.

Clause 17 [Transitional provisions, savings and repeals]:

Lord Fraser of Carmyllie moved Amendments Nos. 40 to 42:

18 Oct 1995 : Column 779


Page 18, line 28, leave out ("section") and insert ("sections").
Page 18, line 29, at end insert—
("(1A) In that Schedule, unless the context otherwise requires, expressions which are also used in the 1986 Act have the same meanings as in that Act.").
Page 18, line 29, at end insert—
("(1B) The Secretary of State may by order make such other transitional provisions and savings as appear to him necessary or expedient.
(1C) An order under subsection (1B) above shall be made by statutory instrument which shall be subject to annulment in pursuance of a resolution of either House of Parliament.").

The noble and learned Lord said: My Lords, I beg to move Amendments Nos. 40 to 42 en bloc.

On Question, amendments agreed to.

Clause 18 [Short title, commencement and extent]:

Lord Fraser of Carmyllie moved Amendments Nos. 43 to 45:


Page 18, line 33, leave out from ("except") to ("shall") in line 34 and insert—
("(a) this section;
(b) sections 8(2), 11(1) to (5), 12 and 13;
(c) section 17(1) and (1A) and Schedule 5; and
(d) so far as relating to the repeal of section 62(7) of the 1986 Act, section 17(2) and Schedule 6,").
Page 19, line 3, leave out ("and 22") and insert (", 22 and 27B").
Page 19, line 7, leave out ("section") and insert ("sections 62(7) and").

The noble and learned Lord said: My Lords, in speaking to Amendment No. 31, I spoke to Amendments Nos. 43 to 45. I beg to move those amendments en bloc.

On Question, amendments agreed to.

Schedule 1 [Exceptions to prohibition on unlicensed activities]:

Lord Fraser of Carmyllie moved Amendment No. 46:


Page 20, line 11, at end insert—
("1A. Section 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.").

On Question, amendment agreed to.

Schedule 2 [The gas code]:

Lord Fraser of Carmyllie moved Amendments Nos. 47 to 49:


Page 21, line 36, leave out ("arranged for gas to be") and insert ("made arrangements in pursuance of which gas is").
Page 21, line 41, after ("meter") insert—
("(a) the use of which does not contravene section 17 of this Act; and
(b) which is").
Page 22, line 37, at end insert—
("( ) Nothing in this paragraph shall apply in relation to any meter which, in pursuance of an agreement falling within subsection (14) of section 17 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 public gas transporter and each relevant gas shipper have agreed that the meter should be kept in proper order by a person other than the consumer.").

The noble and learned Lord said: My Lords, I beg to move Amendments Nos. 47 to 49 en bloc.

On Question, amendments agreed to.

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Lord Fraser of Carmyllie moved Amendments Nos. 50 and 51


Page 23, line 35, after ("of") insert ("any of").
Page 24, line 9, after ("recover") insert ("any of").

The noble and learned Lord said: My Lords, I beg to move Amendments Nos. 50 and 51.

On Question, amendments agreed to.

Lord Fraser of Carmyllie moved Amendments Nos. 52 and 53:


Page 24, line 22, after ("gas") insert ("which has been").
Page 24, line 23, at end insert ("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").

The noble and learned Lord said: My Lords, I beg to move Amendments Nos. 52 and 53.

On Question, amendments agreed to.

Lord Fraser of Carmyllie moved Amendments Nos. 54 to 56:


Page 24, line 44, leave out ("75,000") and insert ("2,500").
Page 24, line 47, leave out ("75,000") and insert ("2,500").
Page 24, line 47, leave out ("2,500") and insert ("75,000").

The noble and learned Lord said: My Lords, I beg to move Amendments Nos. 54 to 56 en bloc.

Lord Skelmersdale: My Lords, on the face of it, the difference between 2,500 and 75,000 therms is many magnitudes. I cannot imagine that this has resulted from an oversight, which most technical amendments are designed to resolve. Perhaps the House will wish to know a fraction more than my noble friend has said on the subject.

Lord Fraser of Carmyllie: My Lords, I am happy to oblige my noble friend. The effect of the amendments is that suppliers in the market to supply customers with 2,500 to 75,000 therms a year will have to opt in to the deemed market arrangements rather than opt out. The purpose of this is to simplify the transitional arrangements on the appointed day to allow existing suppliers to the industrial and commercial market to opt in to the new provisions for deemed contracts when they are ready to do so. Knowing my noble friend's detailed understanding of these matters, I hope that that is sufficient explanation for him.

On Question, amendments agreed to.

Lord Fraser of Carmyllie moved Amendment No. 57:


Page 25, line 31, at end insert—

("Supplies of gas illegally taken

8A.—(1) Where any person takes a supply of gas which is in the course of being conveyed by a public gas transporter, the transporter shall be entitled to recover from that person the value of the gas so taken.
(2) Where—
(a) any person at premises which have been reconnected in contravention of paragraph 10(1) below takes a supply of gas which has been conveyed to those premises by the public gas 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 18 of Schedule 5 to the Gas Act 1995,

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the transporter shall be entitled to recover from that person the value of the gas so taken.
(3) Each public gas 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.").

The noble and learned Lord said: My Lords, I beg to move Amendment No. 57.

On Question, amendment agreed to.


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