Energy Act 2023

Grant etc of gas transporter licenceE+W+S

134Grant, extension or restriction of gas transporter licence by Secretary of StateE+W+S

(1)The Secretary of State may exercise the power under section 7(2) of the Gas Act 1986 (grant of gas transporter licences) so as to grant a gas transporter licence to a designated person, subject to subsection (2).

(2)The Secretary of State may only grant a gas transporter licence which authorises the conveyance of hydrogen through pipes for the purposes of the person’s designated project.

(3)The Secretary of State may exercise the power under section 7(4) of the Gas Act 1986 (direction to extend licence) so as to extend a gas transporter licence where—

(a)the licence is held by a designated person, and

(b)the extension authorises the conveyance of hydrogen through pipes for the purposes of the person’s designated project.

(4)The Secretary of State may exercise the power under section 7(4A) of the Gas Act 1986 (direction to restrict licence) so as to restrict a gas transporter licence where—

(a)the licence is or was held by a designated person, and

(b)the restriction is in connection with the revocation of the person’s designation in relation to a hydrogen pipeline project.

(5)In its application for the purposes of subsections (1), (3) and (4), the Gas Act 1986 has effect as if—

(a)in the following provisions, references to the GEMA were to the Secretary of State—

(i)section 7(5) and (6)(a);

(ii)section 7B(9);

(iii)section 8(3), (4) and (5)(a);

(b)in sections 7(6)(b) and 8(5)(b), references to the Secretary of State were to the GEMA;

(c)in section 7B(4)(c), the reference to the GEMA included a reference to the Secretary of State, but only for the purpose of enabling the inclusion of conditions requiring the rendering of a payment on the grant of a licence;

(d)section 7B(9) also required a copy of the licence to be sent to the GEMA.

(6)When granting or extending a gas transporter licence by virtue of this section, the Secretary of State must have regard to—

(a)costs, expenditure or liabilities of any description that the designated person may reasonably be expected to incur in carrying out its activities;

(b)the need to secure that the designated person is able to finance its activities;

(c)the need to secure that the designated person has appropriate incentives in relation to the carrying on of its activities;

(d)such other matters as the Secretary of State considers appropriate.

(7)References in subsection (6) to a designated person’s activities are to the person’s activities for the purposes of—

(a)the designated project to which the grant or extension relates, and

(b)in the case of an extension, any other designated project already authorised by the person’s gas transporter licence.

(8)A gas transporter licence granted, extended or restricted by the Secretary of State by virtue of this section has effect for all purposes as if it had been granted, extended or restricted by the GEMA.

Commencement Information

I1S. 134 in force at 26.12.2023, see s. 334(3)(c)

135Applications for grant etc of gas transporter licenceE+W+S

(1)The Secretary of State may by regulations make provision about the making, consideration and determination of relevant applications, including provision—

(a)about the person to whom a relevant application must be made;

(b)about the form and manner in which a relevant application must be made;

(c)imposing timing requirements in relation to the making of a relevant application;

(d)requiring a relevant application to be accompanied by such information and documents as may be specified in the regulations;

(e)requiring a relevant application to be accompanied by such fee (if any) as may be—

(i)specified in the regulations, or

(ii)determined, by the person to whom the application is made, in accordance with the regulations;

(f)about the matters to be taken into account in determining a relevant application;

(g)requiring a determination to be accompanied by reasons;

(h)requiring determinations to be published;

(i)conferring functions on the Secretary of State or the GEMA (including functions involving the exercise of a discretion);

(j)for anything falling to be determined under the regulations to be determined—

(i)by the Secretary of State, the GEMA or another person specified in the regulations, and

(ii)in accordance with such procedure and by reference to such matters and to the opinion of such persons as may be so specified.

(2)Relevant application” means an application within any of the following paragraphs (whether made to the Secretary of State or the GEMA)—

(a)an application by a designated person for the grant of a gas transporter licence that authorises the conveyance of hydrogen through pipes for the purposes of the person’s designated project;

(b)an application by a designated person for the extension of a gas transporter licence held by the person so that it authorises the conveyance of hydrogen through pipes for the purposes of the person’s designated project;

(c)an application by a person who is or has been designated for the restriction of a gas transporter licence held by the person, in connection with the person’s designation in relation to a hydrogen pipeline project ceasing to have effect.

(3)Provision made by virtue of subsection (1)(j)(ii) may in particular be made by reference to a document as amended from time to time.

(4)Regulations under this section—

(a)may provide for cases in which an application is not required;

(b)may provide for a relevant application that has been rejected by one person to be dealt with afresh by another person.

(5)Before making regulations under this section, the Secretary of State must consult the GEMA.

(6)Section 7B(1) to (2A) of the Gas Act 1986 does not apply to an application for the grant, extension or restriction of a gas transporter licence so far as the application is one to which regulations under this section apply.

(7)Any sums received by the Secretary of State or the GEMA by virtue of this section are to be paid into the Consolidated Fund.

(8)Regulations under this section are subject to the negative procedure.

(9)For the purposes of section 5A(1) to (10) of the Utilities Act 2000 (duty of the GEMA to carry out impact assessment), a function exercisable by the GEMA by virtue of regulations under this section is to be treated as if it were a function exercisable by it under or by virtue of Part 1 of the Gas Act 1986.

Commencement Information

I2S. 135 in force at 26.12.2023, see s. 334(3)(c)