Utilities Bill - continued        House of Commons
PART I, GAS AND ELECTRICITY - continued

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  CHAPTER V
  AMENDMENT OF THE GAS ACT 1986
 
Gas licensing
Gas licence conditions.     62. - (1) Section 7B of the 1986 Act (general provisions about licences) is amended as follows.
 
      (2) In subsection (4)-
 
 
    (a) in paragraph (a) for "4 or 4A above" there is substituted "section 4AA, 4AB and 4A"; and
 
    (b) paragraph (b) (which is superseded by provision made in section 4AA) is omitted.
      (3) 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."
      (4) In subsection (5)(a)(iii) for "specified or described" there is inserted "referred to".
 
      (5) In subsection (6) the words "specified or described" shall cease to have effect.
 
Exceptions from s. 5 of 1986 Act.     63. Section 5(2) of and Schedule 2A to the 1986 Act shall cease to have effect.
 
Gas transporters.     64. - (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, in section 7(1), for "public gas transporter" (the expression defined by that subsection) there is substituted "gas transporter".
 
      (2) In section 5(1)(a) of the 1986 Act (conveyance of gas through pipes to premises or to a pipeline system operated by a public gas transporter an offence unless authorised by a licence), for "public gas transporter" there is substituted "gas transporter".
 
      (3) In section 7, in subsection (2)(a), the words from "as is" to the end (which explain the expression "authorised area of his") and subsection (7) (which restricts the areas which may be specified in a licence or extension granted under section 7) shall cease to have effect.
 
      (4) 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.
 
Transfer of gas licences.     65. For section 8AA of the 1986 Act (assignment of gas licences) there is substituted-
 
 
"Transfer of licences.     8AA. - (1) A licence-
 
    (a) shall be capable of being transferred by the licence holder, with the consent of the Authority, in accordance with this section and subject to any term of the licence relating to its transfer;
 
    (b) may include conditions which must be complied with before the licence can be transferred.
      (2) A transfer may relate to the whole or, except in the case of a generation licence, any part of the licence.
 
      (3) The reference in subsection (2) to part of a licence is a reference to a part of the activities authorised by the licence (whether described by reference to activities being carried on by the licence holder or to activities which he is authorised to carry on).
 
      (4) Such consent may be given subject to compliance with such modification or other conditions as the Authority considers necessary or expedient.
 
      (5) In the case of a partial transfer, conditions imposed under subsection (4) may make as respects so much of the licence as is proposed to be retained by the transferor provision different from that made as respects so much of the licence as is proposed to be transferred.
 
      (6) In deciding whether to give his consent to a proposed transfer, the Authority shall apply the same criteria as it would apply if the authority were deciding whether-
 
 
    (a) in the case of a general transfer, to grant a corresponding licence to the transferee; or
 
    (b) in the case of a partial transfer-
 
      (i) to grant to the transferee a licence corresponding to so much of the licence as is proposed to be transferred; and
 
      (ii) to grant to the transferor a licence corresponding to so much of the licence as is proposed to be retained.
      (7) The Authority shall-
 
 
    (a) give the Health and Safety Executive not less than 28 days' notice of any proposal of his to consent to any proposed transfer; and
 
    (b) give that Executive and the Secretary of State not less than 28 days' notice of any proposal of his to impose a modification condition.
      (8) If, before the expiry of the time specified in a notice given to the Secretary of State under subsection (7)(b), the Secretary of State directs the Authority not to impose the condition, the Authority shall comply with the direction.
 
      (9) Before giving consent to the transfer of a licence, the Authority shall give notice-
 
 
    (a) stating that it proposes to grant consent to the transfer;
 
    (b) stating the reasons why it proposes to give consent; and
 
    (c) specifying the time from the date of publication of the notice (not being less than two months) within which representations or objections with respect to the transfer may be made,
  and shall consider any representations or objections that are duly made and not withdrawn.
 
      (10) A notice under subsection (9) shall be given by publishing the notice in such manner as the Authority considers appropriate for bringing it to the attention of persons likely to be affected by the transfer.
 
      (11) A purported transfer of a licence shall be void-
 
 
    (a) if the licence is not capable of transfer or the Authority has not given its consent;
 
    (b) if the purported transfer is in breach of a condition of the licence; or
 
    (c) if there has, before the purported transfer, been a contravention of a condition subject to compliance with which the Authority's consent is given.
      (12) In this section-
 
 
    "transfer" includes any form of transfer or assignment or, in Scotland, assignation;
 
    "modification condition" means a condition requiring or otherwise providing for the making of modifications to the conditions of a licence."
Exemptions from gas licensing.     66. - (1) For subsections (2) and (3) of section 6A of the 1986 Act (exemptions from prohibition) there is substituted-
 
 
    "(2) Notice of an exemption granted to a person shall be given-
 
 
    (a) by serving a copy of the exemption on him; and
 
    (b) by publishing the exemption in such manner as the Secretary of State considers appropriate for bringing it to the attention of other persons who may affected by it.
      (2A) Notice of an exemption granted to persons of a class shall be given by publishing the exemption in such manner as the Secretary of State considers appropriate for bringing it to the attention of-
 
 
    (a) persons of that class; and
 
    (b) other persons who may affected by it.
      (3) An exemption may be granted-
 
 
    (a) indefinitely; or
 
    (b) for a period specified in, or determined by or under, the order by which it is granted."
      (2) For subsection (5) of that section there is substituted-
 
 
    "(5) The Secretary of State may by order revoke an order by which an exemption was granted to a person or vary an order by which more than one exemption was so granted so as to terminate any of the exemptions-
 
 
    (a) at the person's request;
 
    (b) in accordance with any provision of the order by which the exemption was granted; or
 
    (c) if it appears to the Secretary of State inappropriate that the exemption should continue to have effect.
      (6) The Secretary of State may by order revoke an order by which an exemption was granted to persons of a class or vary an order by which more than one exemption was so granted so as to terminate any of the exemptions-
 
 
    (a) in accordance with any provision of the order by which the exemption was granted; or
 
    (b) if it appears to the Secretary of State inappropriate that the exemption should continue to have effect.
      (7) The Secretary of State may by direction withdraw an exemption granted to persons of a class from any person of that class-
 
 
    (a) at the person's request;
 
    (b) in accordance with any provision of the order by which the exemption was granted; or
 
    (c) if it appears to the Secretary of State inappropriate that the exemption should continue to have effect in the case of the person.
      (8) Before-
 
 
    (a) making an order under subsection (5)(b) or (c) or (6); or
 
    (b) giving a direction under subsection (7)(b) or (c),
  the Secretary of State shall consult the Authority and give notice of his proposal to do so (with reasons) and of a period within which representations may be made to him.
 
      (9) The notice under subsection (8) shall be given-
 
 
    (a) where the Secretary of State is proposing to make an order under subsection (5)(b) or (c), by serving a copy of it on the person to whom the exemption was granted;
 
    (b) where he is proposing to make an order under subsection (6), by publishing it in such manner as the Secretary of State considers appropriate for bringing it to the attention of persons of the class of persons to whom the exemption was granted; and
 
    (c) where he is proposing to give a direction under subsection (7)(b) or (c), by serving a copy of it on the person from whom he proposes to withdraw the exemption."
Reasons for decisions under the 1986 Act.     67. For section 38A of the 1986 Act (duty to consider representations and give reasons) there is substituted-
 
 
"Reasons for decisions.     38A. - (1) This section applies to the following decisions of the Authority or the Secretary of State, namely-
 
    (a) the granting of an exemption;
 
    (b) the revocation of a licence;
 
    (c) the modification of the conditions of a licence;
 
    (d) the giving of any directions or consent in pursuance of a condition included in a licence by virtue of section 7B(5)(a)(i) or (ii);
 
    (e) the determination of a question referred in pursuance of a condition included in a licence by virtue of section 7B(5)(iii);
 
    (f) the determination of a dispute referred under section 27A(1);
 
    (g) the making of a final order, the making or confirmation of a provisional order or the revocation of a final order or of a provisional order which has been confirmed.
      (2) As soon as reasonably practicable after making such a decision the Authority or the Secretary of State shall give notice of the reasons for the decision.
 
      (3) Notice under subsection (2) shall be given by-
 
 
    (a) publishing it in such manner as the person publishing it considers appropriate for the purpose of bringing the matters to which the notice relates to the attention of persons likely to be affected by them; and
 
    (b) in the case of a notice containing reasons for a decision relating to a licence granted to a particular person, by serving a copy of the notice on that person.
      (4) In giving notice under this section the Authority and the Secretary of State shall have regard to the need for excluding, so far as that is practicable, any matter the publication of which it or he considers would or might seriously and prejudicially affect the interests of a particular individual or body of persons (corporate or unincorporate).
 
      (5) This section does not apply in relation to a decision of the Authority resulting in any provision which the Secretary of State has under section 36(3) directed the Authority not to enter in the register required to be kept under that section.".
 
 
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