UK Act of Parliament 1986 United Kingdom

Gas Act 1986

View on legislation.gov.uk (opens in a new tab) Ask Guv about this Act

At a glance

Enforced by

Ofgem

What's here

75 compliance obligations, 5 practical guides · 8 statutory instruments

Penalty landscape

6 of 75 obligations carry an unlimited fine. 4 carry different penalties and 65 have no criminal penalty — flagged in the list below.

Who this Act binds

Business-side actors with duties under this Act, ranked by how often they appear.

  • Any Person 29
  • Trader 7
  • Occupier 1
  • Licence Holder 1
  • Distributor 1
  • Director or Officer 1
  • Applicant 1
  • Landlord 1

Plus 33 non-business duties on Crown ministers, regulators, local authorities or tribunals — shown collapsed under each section below.

Relevant guidance

Practical guides for businesses affected by this Act, ordered by how closely they engage with it.

Direct — cites this Act

1 guides

Supporting — topic alignment

4 guides

Other Acts binding the same actors

For each actor bound by this Act, the other UK Acts that bind them most often. Useful for understanding the full compliance landscape facing each role.

Any Person also bound by 749 other Acts (top 5 shown)
Traders also bound by 219 other Acts (top 5 shown)
Occupiers also bound by 101 other Acts (top 5 shown)
Licence Holders also bound by 50 other Acts (top 5 shown)
Distributors also bound by 33 other Acts (top 5 shown)
Directors and Officers also bound by 224 other Acts (top 5 shown)
Applicants also bound by 146 other Acts (top 5 shown)
Landlords also bound by 70 other Acts (top 5 shown)

What this Act requires

Sections that create concrete duties on businesses or carry penalties. Procedural and definitional sections are folded into the “Browse other sections” expander at the bottom of each group. Click any section title to read the source text on legislation.gov.uk.

Part I — Gas Supply

s.004

Guidance on social and environmental matters.

Other duties (1) — Crown / regulator
  • Secretary of State must issue guidance on social and environmental matters Crown / Minister / Government department
s.004

Binding decisions of the Agency for the Cooperation of Energy Regulators and of the European Commission

Other duties (1) — Crown / regulator
  • Ofgem must comply with binding ACER and European Commission decisions Statutory regulator
s.004

Authority to consult and cooperate with other authorities

Other duties (1) — Crown / regulator
  • Ofgem must coordinate and cooperate with other regulators Statutory regulator
s.004

Duty to notify etc. the European Commission: agreements with third countries

Other duties (1) — Crown / regulator
  • Secretary of State must notify European Commission of third-country agreements Crown / Minister / Government department
s.006

Duties of distribution exemption holders

  • Distribution exemption holders must comply with Schedule 2AA duties Any Person
s.006

Duties of supply exemption holders

  • Comply with gas supply duties if you hold a supply exemption Any Person
s.007

Licences: general.

  • Apply for a gas licence and notify relevant parties Applicant
s.008

Standard conditions of licences.

Other duties (1) — Crown / regulator
  • Ofgem must give notice before modifying gas licence conditions Statutory regulator
s.008

Transfer of licences.

  • Obtain Ofgem consent before transferring a gas licence Licence Holder
s.008

Requirement for certain gas transporters and operators of gas interconnectors to be certified as independent

  • Ensure you are certified as an independent gas transporter or operator Any Person
s.008

Report where applicant connected with a country outside the United Kingdom

Other duties (1) — Crown / regulator
  • Secretary of State must report on UK energy security for foreign applicants Crown / Minister / Government department
s.008

Certification

Other duties (1) — Crown / regulator
  • Ofgem must decide on gas certification applications within four months Statutory regulator
s.008

The ownership unbundling requirement: supplementary

Other duties (1) — Crown / regulator
  • Ofgem must set time limits for temporary ownership unbundling certifications Statutory regulator
s.008

Designation for the purposes of the Gas Regulation

Other duties (1) — Crown / regulator
  • Ofgem must formally designate and notify gas transmission system operators Statutory regulator
s.008

Review of certification: requirement to provide information etc

  • Provide information to Ofgem during a certification review Any Person
s.008

Report as to any connection of certified person with a country outside the United Kingdom

Other duties (1) — Crown / regulator
  • Secretary of State must report on gas supply security risks Crown / Minister / Government department
s.008

Prohibition on the exercise of certain shareholder rights and rights of appointment

  • Do not exercise shareholder or appointment rights that cause discrimination Any Person
s.008

Independence of storage facilities and duty to allow others to use them: exemptions for minor facilities

  • Apply for a 'minor facility' exemption for gas storage Any Person
s.011

General duties of facility owners

  • Operate gas storage and LNG facilities safely, reliably and efficiently Any Person
s.011

Duty of current and prospective LNG import or export facility owners to provide information

  • Provide information to Ofgem regarding LNG facilities Landlord
s.011

Restrictions on disclosure of information by facility owners

  • Protect commercially sensitive data and prevent discriminatory disclosure Any Person
s.018

Safety regulations.

Fine up to £1,000
  • Obstruct an officer inspecting gas systems Any Person
s.019

Application of section 19B to storage facilities.

  • Apply for an exemption from third-party access rules for gas storage Any Person
s.019

Acquisition of rights to use storage facilities.

  • Publish commercial conditions for gas storage use Any Person
s.019

Application of section 19D to LNG facilities.

  • Apply for an exemption for new or modified LNG facilities Any Person
s.019

Acquisition of rights to use LNG facilities.

  • Publish and seek approval for LNG facility usage conditions and costs Any Person
s.019

Allocation of capacity in exempt new and modified facilities

  • Specify capacity allocation criteria in your infrastructure exemption application Any Person
s.019

Duty to allow others to use LNG import or export facilities: exemptions in relation to take-or-pay commitments

  • Apply for a 'take-or-pay' exemption to refuse LNG facility access Any Person
s.019

Sections 19A to 19D: supplemental.

  • Maintain and provide accounting records for gas storage and treatment Any Person
s.022

Effect of directions.

  • Comply with directions regarding pipeline capacity and construction Any Person
s.023

Determination by CMA of appeal

Other duties (1) — Crown / regulator
  • CMA must determine gas licence appeals and may only allow valid grounds Statutory regulator
s.023

CMA's powers on allowing appeal

Other duties (1) — Crown / regulator
  • CMA must decide on gas license appeals and may issue directions Tribunal / Court
s.023

Determination of appeal by CMA : supplementary

Other duties (1) — Crown / regulator
  • CMA must publish and notify appeal decisions Tribunal / Court
s.027

Determination of certain disputes.

Other duties (1) — Crown / regulator
  • Ofgem must determine gas supply and connection disputes Statutory regulator
s.027

Time limit for determinations

Other duties (1) — Crown / regulator
  • Ofgem must determine gas disputes within two months Statutory regulator
s.029

Procedural requirements.

Other duties (1) — Crown / regulator
  • Ofgem must follow specific notice procedures before issuing orders Statutory regulator
s.030

Penalties.

  • Fail to comply with gas licence conditions or performance standards Any Person
s.030

Consumer redress orders

Other duties (1) — Crown / regulator
  • Ofgem may issue consumer redress orders for rule breaches Statutory regulator
s.030

Remedial action under a consumer redress order

  • Comply with consumer redress orders issued by Ofgem Any Person
s.030

Other procedural requirements in relation to consumer redress orders

Other duties (1) — Crown / regulator
  • Ofgem must follow specific notice procedures for consumer redress orders Statutory regulator
s.030

Statement of policy with respect to consumer redress orders

Other duties (1) — Crown / regulator
  • Ofgem must publish and follow a policy on consumer redress orders Statutory regulator
s.030

Enforcement of consumer redress orders

Unlimited fine
Other duties (1) — Crown / regulator
  • Ofgem may take legal action to enforce consumer redress orders Statutory regulator
s.033

Overall standards of performance.

  • Operate your gas supply business to meet official performance standards Distributor
s.033

Overall standards of performance: gas transporters.

  • Gas transporters must meet overall performance standards Any Person
s.033

Procedures for prescribing or determining standards of performance.

Other duties (1) — Crown / regulator
  • Ofgem must follow specific procedures before setting performance standards Statutory regulator
s.033

Publication of statistical information about standards of performance.

Other duties (1) — Crown / regulator
  • Citizens Advice must publish performance and complaint data for gas companies Statutory regulator
s.033

Remuneration and service standards.

  • Disclose director pay linked to performance and service standards Trader
s.034

General functions.

Other duties (1) — Crown / regulator
  • Ofgem must monitor gas market activities and collect industry information Statutory regulator
s.034

Power to require information etc for the purpose of monitoring

Unlimited fine
  • Intentionally destroy or conceal documents required by a regulator Any Person
s.036

Keeping of register.

Other duties (1) — Crown / regulator
  • Ofgem must maintain a public register of gas licences and exemptions Statutory regulator
s.036

Functions with respect to competition.

Other duties (1) — Crown / regulator
  • Ofgem must perform competition and market investigation functions Statutory regulator
s.041

Reports on references.

Other duties (1) — Crown / regulator
  • CMA must report on whether non-licensed gas activities harm public interest Statutory regulator
s.041

Application by Authority for order excluding activities.

Other duties (1) — Crown / regulator
  • Ofgem must consult before removing an activity from gas licensing Statutory regulator
s.041

Consultation by Secretary of State about order excluding activities.

Other duties (1) — Crown / regulator
  • Secretary of State must consult before removing gas licensing requirements Crown / Minister / Government department
s.041

Service by Authority of certain notices on Citizens Advice and Consumer Scotland.

Other duties (1) — Crown / regulator
  • Ofgem must send copies of published notices to consumer bodies Statutory regulator
s.045

Offences by bodies corporate.

2 years imprisonment
  • Personal liability for directors and officers for corporate gas offences Director or Officer
Browse 100 other sections in this Part — procedural / definitional / commencement
s.004

Health and safety.

s.004

The principal objective and general duties of the Secretary of State and the Authority.

s.004

Exceptions from sections 4AA to 4A.

s.006

Exemptions from prohibition.

s.007

Licensing of gas suppliers and gas shippers.

s.007

Licensing of a person carrying out gas system planner functions

s.007

Licensing of a person providing a smart meter communication service

s.007

Licensing of a person performing code manager function

s.007

Licences for operation of gas interconnectors

s.008

Modification or removal of the 25,000 therm limits.

s.008

The gas code.

s.008

Application for certification

s.008

Grounds for certification

s.008

The ownership unbundling requirement

s.008

Monitoring and review of certification

s.008

Continuation or withdrawal of certification

s.008

Validity of acts infringing section 8O

s.008

Interpretation

s.008

Independence of storage facilities

s.010

Restriction on use of certain pipe-lines for providing a supply.

s.014

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..

s.015

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..

s.018

Gas escape regulations.

s.019

... Revocation of exemptions under section 19A

s.019

... Revocation of exemptions under section 19C

s.019

Provision of information

s.022

Construction of pipe-lines.

s.023

Modification of conditions under section 23: supplementary

s.023

Appeal to the CMA

s.023

Procedure on appeal to CMA

s.023

Time limits for CMA to determine an appeal

s.024

References under section 24: time limits

s.024

References under section 24: powers of investigation

s.026

Competition Commission’s power to veto modifications following report.

s.027

Meaning of “ section 27B dispute”

s.027

Determination of disputes

s.030

Statement of policy with respect to penalties.

s.030

Time limits on the imposition of penalties.

s.030

Interest and payment of instalments.

s.030

Appeals against penalties.

s.030

Recovery of penalties.

s.030

Time limits for making consumer redress orders

s.030

Appeals against consumer redress orders

s.030

Consumer redress orders: miscellaneous

s.030

Maximum amount of penalty or compensation

s.032

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..

s.033

Standards of performance in individual cases.

s.033

Standards of performance in individual cases: gas transporters.

s.033

Standards of performance in individual cases: disputes.

s.033

Standards for promoting efficient use of gas.

s.033

Promotion of reductions in carbon emissions: gas transporters and gas suppliers

s.033

Scottish Ministers' promotion of reductions in carbon emissions: gas suppliers

s.033

Promotion of reductions in home-heating costs: gas transporters and gas suppliers

s.033

Scottish Ministers' promotion of reductions in home-heating costs: gas suppliers

s.033

Information with respect to levels of performance.

s.033

Information to be given to customers about overall performance.

s.033

Information relating to complaints handling standards

s.033

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..

s.036

Functions with respect to gas measuring equipment etc.

s.036

Power to direct a modification of the UNC

s.038

Reasons for decisions.

s.041

Adjustment of charges to help disadvantaged groups of customers.

s.041

Orders: supplementary.

s.041

Power to alter activities requiring licence.

s.041

Application by Authority for order including new activities.

s.041

References to CMA.

s.041

References under section 41E: time limits

s.041

References under section 41E: application of Enterprise Act 2002

s.041

New licensable activities: smart meters

s.041

Section 41HA: supplemental

s.041

Competitive tenders for licences for new licensable activities

Part II — Transfer of Undertaking of Corporation

s.050

British Gas Stock.

  • British Gas Corporation must transfer unclaimed funds to the Bank of England Trader
s.060

Tax provisions.

  • Successor gas companies must follow specific tax continuity rules Trader
Browse 9 other sections in this Part — procedural / definitional / commencement

Part III — Miscellaneous and General

s.065

Financial provisions.

Other duties (1) — Crown / regulator
  • Secretary of State must fund administrative expenses of the Act Crown / Minister / Government department
Browse 7 other sections in this Part — procedural / definitional / commencement
s.064

Extraterritorial operation of Act

Schedules

s.sch002aa

Duties of distribution exemption holders

  • Facilitate third-party gas supply requests on your network Occupier
s.sch002ab

Duties of supply exemption holders

  • Notify current gas supplier of switch and start dates Trader
s.sch004a

Procedure for appeals under section 23B

  • Apply to the CMA for permission to appeal an Ofgem licence decision Any Person
Browse 8 other Schedules — structural / supplementary
s.sch002a

Exceptions to prohibition on unlicensed activities

s.sch002b

The gas code

s.sch004b

Provisions imposing obligations enforceable as relevant requirements

Other sections — not classified into a Part

These sections exist in the Act but the contents-of-Parts walker did not place them under a Part. Likely amendments or sections inserted out of the original Part structure.

Browse 1 other unclassified section
s.part i

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..

Read the full Act on legislation.gov.uk (opens in a new tab)

Official guidance

Authoritative sources published by regulators or government explaining this legislation.

Enforcement and responsible bodies

The regulators that administer or enforce this legislation.

Ofgem

Office of Gas and Electricity Markets

Regulates gas and electricity markets in Great Britain. Issues licences for generation, transmission, distribution, and supply. Protects consumers and promotes competition. Also …

Connected legislation

8 statutory instruments

These instruments amend, apply, or refer to this Act. They may not all create direct business obligations.

Explore more

Browse legislation

Find other UK business legislation with related guidance.

Regulators

Learn more about the bodies that enforce this legislation.