Regulation 18 Independence of gas transporters authorised to convey gas to premises

Section 7 of the Gas Act 1986 (licensing of gas transporters)^f1 is amended as follows.

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

After subsection (3) insert—

“(3A)

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

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

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

“(za)

“gas producer” means a person who—

(i)

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

(ii)

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