Utilities Bill - continued        House of Lords

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  PART V
  AMENDMENT OF THE GAS ACT 1986
 
Gas licensing
Gas licence conditions.     74. - (1) Section 7B of the 1986 Act (general provisions about licences) is amended as follows.
 
      (2) After subsection (2) there is inserted-
 
 
    "(2A) Where the Authority proposes to refuse the application, it shall give to the applicant a notice-
 
 
    (a) stating that it proposes to refuse the application;
 
    (b) stating the reasons why it proposes to refuse the application; and
 
    (c) specifying the time within which representations with respect to the propose refusal may be made,
       and shall consider any representations which are duly made and not withdrawn."
 
      (3) In subsection (4)-
 
 
    (a) in paragraph (a) for "section 4 or 4A above" there is substituted "sections 4AA, 4AB and 4A"; and
 
    (b) paragraph (b) (which is superseded by provision made in section 4AA) is omitted.
      (4) After subsection (4) there is inserted-
 
 
    "(4A) Without prejudice to the generality of paragraph (a) of subsection (4), conditions included in a licence under section 7 by virtue of that paragraph-
 
 
    (a) may require the licence holder to enter into agreements with other persons for the use of any pipe-line system of his (wherever situated and whether or not used for the purpose of carrying on the activities authorised by the licence) for such purposes as may be specified in the conditions;
 
    (b) may include provision for determining the terms on which such agreements are to be entered into."
      (5) In subsection (5)(a)(iii) for "specified or described" there is inserted "referred to".
 
      (6) In subsection (6) the words "specified or described in the licence" shall cease to have effect.
 
      (7) After subsection (10) there is inserted-
 
 
    "(11) In this section "prescribed" means prescribed in regulations made by the Authority."
 
Exceptions from section 5 of 1986 Act.     75. Section 5(2) of and Schedule 2A to the 1986 Act shall cease to have effect.
 
Gas transporters.     76. - (1) The authorised areas of persons holding gas transportation licences under section 7 of the 1986 Act (licensing of public gas transporters) shall cease to be exclusive and, accordingly, section 7 is amended as follows.
 
      (2) In subsection (1), for "public gas transporter" (the expression defined in that subsection) there is substituted "gas transporter".
 
      (3) In paragraph (a) of subsection (2), for the words from "so much of" to the "and" preceding paragraph (b), there is substituted "any area specified in the licence as it has effect for the time being;".
 
      (4) After subsection (4) there is inserted-
 
 
    "(4A) The Authority may, with the consent of the licence holder, direct that any licence under this section shall have effect as if any area or pipe-line system specified in the direction were not specified in the licence; and references in this Part to, or to the grant of, a restriction under this section, or a restriction of such a licence, shall be construed as references to, or to the giving of, such a direction."
 
      (5) In subsections (5) and (6) the words "or extension", in each place where they appear and, in subsection (5), the words "or, in the case of an extension, such shorter time as may be prescribed" shall cease to have effect.
 
      (6) Subsections (7) and (8) shall cease to have effect.
 
      (7) References in any enactment in force immediately before the commencement of this section to a public gas transporter or to the holder of a licence under section 7 of the 1986 Act shall have effect after that commencement as if they were references to a gas transporter.
 
Restriction on use of certain pipe-lines for providing a supply of gas.     77. - (1) After section 10 of the 1986 Act (duty of gas transporters to make a connection in certain circumstances) there is inserted-
 
 
"Restriction on use of certain pipe-lines for providing a supply.     10A. - (1) Any pipe-line of a gas transporter-
 
    (a) for the construction of which the execution of works has begun before the commencement of section 76 of the Utilities Act 2000 (abolition of geographical exclusivity of authorised areas of gas transporters); and
 
    (b) which is situated in an area which, immediately before the commencement of that section, is the authorised area of a public gas transporter (the "other transporter"),
       shall not be used for the purpose of giving a supply of gas to any premises in that area at a rate less than 2,196,000 kilowatt hours per year unless the other transporter consents in writing to such use.
 
      (2) If the other transporter refuses or fails to give consent under subsection (1) consent may instead be given in writing by the Authority where it considers it appropriate to do so.
 
      (3) Consent given under this section may not be withdrawn.
 
      (4) In this section "pipe-line" has the same meaning as in the Pipe-lines Act 1962.".
 
      (2) In section 28(8) of the 1986 Act (definition of "relevant requirement") after "or (14)" there is inserted "10A(1),".
 
Construction of pipe-lines by gas transporters.     78. - (1) Section 22A of the 1986 Act (prohibition on execution of works for the construction of pipe-lines) is amended as follows.
 
      (2) In subsection (1)-
 
 
    (a) for the words "A public gas transporter shall not at any time execute in an authorised area of another public gas transporter" there is substituted "A gas transporter shall not at any time execute within 23 metres from a pipe-line of another gas transporter (the "other transporter")";
 
    (b) in paragraph (b), the words "in that area" (in both places where they appear) shall cease to have effect;
 
    (c) after paragraph (c) there is inserted "; and
 
    (d) (subject to subsection (1C)) where the existing pipe-line is a relevant main of the other transporter, that transporter has consented in writing to the construction of the proposed pipe-line, either unconditionally or subject to conditions.".
      (3) After subsection (1) there is inserted-
 
 
    "(1A) Subsection (1) does not apply if the proposed pipe-line is required to enable a gas transporter to comply with any duty imposed by section 10(2).
 
      (1B) Conditions imposed under subsection (1)(d) may relate to matters arising after the construction of the proposed pipe-line, including the use to be made of the pipe-line.
 
      (1C) If the other transporter-
 
 
    (a) refuses or fails to give consent under subsection (1)(d); or
 
    (b) gives such consent subject to conditions,
       consent may instead be given in writing by the Authority where it considers it appropriate to do so.
 
      (1D) Consent under subsection (1C) may only be given unconditionally or, in a case falling within subsection (1C)(b), subject to the same conditions as were imposed by the other transporter.
 
      (1E) A condition imposed on a gas transporter under this section shall be enforceable by civil proceedings by the other transporter for an injunction or for interdict or for any other appropriate relief.".
 
      (4) In subsection (3), after the definition of "pipe-line" there is inserted ";
 
 
    "relevant main" has the meaning given by section 10(12)."
Duty to facilitate competition.     79. - (1) Section 9 of the 1986 Act (general powers and duties of gas transporters) is amended as follows.
 
      (2) In subsection (1)(b)-
 
 
    (a) after "him" there is inserted "-
 
      (i) "; and
 
    (b) after "premises" there is inserted "; or
 
      (ii) to connect to that system a pipe-line system operated by an authorised transporter."
      (3) After subsection (1) there is inserted-
 
 
    "(1A) It shall also be the duty of a gas transporter to facilitate competition in the supply of gas."
 
      (4) In subsection (2)(a), after "premises" there is inserted ", or a pipe-line system operated by an authorised transporter,".
 
      (5) After subsection (2) there is inserted-
 
 
    "(2A) In this section "authorised transporter" means a person who is authorised by a licence or exemption to convey gas through pipes to any premises, or to a pipe-line system operated by a gas transporter."
 
Gas transporters' duty to make a connection.     80. - (1) Section 10 of the 1986 Act (duty of gas transporters to make a connection in certain circumstances) is amended as follows.
 
      (2) After subsection (3) there is inserted-
 
 
    "(3A) A gas transporter may require any person who requires a connection under subsection (2)(b) to accept any terms-
 
 
    (a) indemnifying the transporter in respect of any liability connected with the laying of the pipe;
 
    (b) which it is reasonable in all the circumstances for that person to be required to accept."
      (3) After subsection (5) there is inserted-
 
 
    "(5A) Where in pursuance of subsection (2)(b) a gas transporter connects any premises to a relevant main by a pipe supplied and laid by the owner or occupier of the premises, the cost of making the connection shall, if and to the extent that the transporter so requires and the conditions of his licence so allow, be defrayed by the person supplying and laying the pipe."
 
      (4) In subsection (6)(b) after "rights" there is inserted "or liabilities".
 
      (5) In the words following subsection (6)(b), for "or rights" there is substituted ", rights or liabilities".
 
      (6) In subsection (12) for "his authorised area" there is substituted "an authorised area of his".
 
 
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