Part 6Governance of gas and electricity industry codes

Licensing and selection of code manager

I1185Licence under Gas Act 1986 for performance of code management function

1

Part 1 of the Gas Act 1986 is amended as follows.

2

Section 5 (prohibition on unlicensed activities) is amended as follows.

3

After subsection (1)(d) insert

; or

e

performs the function of code manager in relation to a designated gas licence document (see further subsections (11A) and (11B)),

4

After subsection (11) insert—

11A

A reference in this Part to a person (“P”) performing the function of code manager in relation to a designated gas licence document is a reference to making arrangements, with the persons to whom subsection (11B) applies, under which P is responsible for the governance of the document.

11B

This subsection applies to the holder of a licence for the purposes of section 5 where a condition of the licence—

a

requires the holder to comply with, or to enter into arrangements that conform with, the designated gas licence document in question, or

b

imposes obligations on the holder that do not apply to the holder where the holder complies with that document.

5

In subsection (12)—

a

omit the “and” after the definition of “relevant information”;

b

at the appropriate place insert—

  • designated gas licence document” means a document that is—

    1. a

      maintained in accordance with the conditions of a licence for the purposes of section 5, and

    2. b

      designated under section 182 of the Energy Act 2023;

6

After section 7AB insert—

7ACLicensing of a person performing code manager function

1

The Authority may grant a licence (“a code manager licence”) authorising a person to perform the function of code manager in respect of a designated gas licence document.

2

Where a designated gas licence document is also a designated electricity licence document, a person may not be granted a code manager licence in respect of the document unless the same person is at the same time granted a licence under section 6(1)(g) of the Electricity Act 1989.

3

In this section—

  • designated electricity licence document” has the same meaning as in section 4 of the Electricity Act 1989;

  • designated gas licence document” has the same meaning as in section 5.

7

Section 7B (licences: general) is amended as follows.

8

In subsection (5A)—

a

after “smart meter communication licence” (in the first place it occurs) insert “or in a code manager licence”;

b

for “smart meter communication licence” (in the second place it occurs) substitute “a licence of the same type”.

9

In subsection (5B)—

a

for “Secretary of State or the Authority” substitute “relevant authority”;

b

in paragraph (b)(ii), after “licence” insert “or (in the case of an application for a code manager licence) apply for a licence otherwise than as part of a competition”.

10

In subsection (5C), after “smart meter communication licence” insert “or in a code manager licence”.

11

In subsection (5D), for “the Secretary of State or the Authority” substitute “the relevant authority”.

12

In subsection (5E)—

a

in paragraph (a), for “Secretary of State or the Authority (as appropriate)” substitute “relevant authority”;

b

in paragraph (b), for “Secretary of State or the Authority (as appropriate)” substitute “relevant authority”.

13

After subsection (5F) insert—

5FA

In subsections (5B) to (5E), “the relevant authority” means—

a

in relation to a smart meter communication licence, the Secretary of State or the Authority;

b

in relation to a code manager licence, the Authority.

14

In section 8AA (transfer of licences), after subsection (11A) insert—

11B

Where the holder of a code manager licence is also the holder of a licence under section 6(1)(g) of the Electricity Act 1989, the code manager licence may not be transferred to a person unless the licence under section 6(1)(g) of that Act is transferred to the same person at the same time.