What this covers
Why you need it
Parliament created it. The power to require it comes from Gas Act 1986.
What the Act carries
What our graph holds for Gas Act 1986 as a whole — the Act behind this licence, not the licence conditions themselves.
- Duties on businesses
- 72
- Penalties
- 17
- Exemptions
- 14
Duties on businesses under the Act
- Operating in the gas market without a licence s.5
- Comply with gas supply duties if you hold a supply exemption s.6C
- Distribution exemption holders must comply with Schedule 2AA duties s.6B
- Apply for a gas licence and notify relevant parties s.7B
- Obtain and comply with a gas transport licence s.7
- Apply for a 'minor facility' exemption for gas storage s.8S
… and 66 more business duties in the same Act.
What happens if you get it wrong
- Personal liability for directors and officers for corporate gas offences 2 years imprisonment
- Non-payment of Ofgem penalties and interest Unlimited fine
- Breach of gas sector regulations Unlimited fine
- Fail to deliver statutory return or comply with Ofgem requirement Unlimited fine
- Fail to provide information or records to Ofgem Unlimited fine
… and 12 more penalties in the same Act.
Exemptions that may take you outside it
- Closed distribution systems exempt from use of system charge rules — Your distribution system is a closed distribution system as defined in the Gas Act 1986
- Compressed air and extraneous gas users may avoid installing a backflow device if no request — The gas transporter has not served a written notice requiring you to install an anti-backflow device, OR the compressor or …
- Confidential commercial details exempt from Ofgem decision notices — Publication of the matter would or might seriously and prejudicially affect the interests of the individual or body, or the …
- Exemption from compulsory purchase procedures for purchases under Gas Act 1965 — Compulsory purchase made under sections 12 or 13 of the Gas Act 1965, to which Part I of Schedule 4 …
- Exemption from gas licensing for landlords, groups, and large consumers — Landlord conveying gas in their building; companies supplying subsidiaries; propane/butane suppliers; or supply to consumers exceeding specific annual therm thresholds.
… and 9 more exemptions in the same Act.
Read our full dossier on Gas Act 1986
Who issues it
This one does not go to your council. It is issued by Department for Energy Security and Net Zero.
Where to apply
Duty, penalty and exemption labels are Guvnor’s analysis of the enabling instrument, not the instrument itself. Fees, forms and conditions are set by the issuing authority — always check the linked source.