SIC 35.22 30 enterprises in the UK
Distribution of gaseous fuels through mains
What this covers (7 activity descriptions)
- Distribution and supply of gaseous fuels of all kinds through a system of mains
- Natural gas booster/compression station
- Natural gas distribution
- Natural gas storage
- Repair and maintenance of gas meters
- Repair and maintenance of gas meters (non-electronic)
- Town gas distribution
What you must comply with
Unique to distribution of gaseous fuels through mains
Ofgem gas transporter licence
Required for any business operating a gas distribution network (conveying gas through pipes to premises). The four main Gas Distribution Networks (GDNs) — Cadent, Northern Gas Networks, SGN, Wales & West Utilities — hold Ofgem gas transporter licences and operate as regulated monopolies under RIIO-GD price controls. Independent Gas Transporters (iGTs) may also hold licences for privately-built networks. Gas Act 1986 does not apply to Northern Ireland, which has separate legislation.
Gas transporter safety case — HSE acceptance
All gas transporters must prepare a safety case (per Schedule 1 of GSMR) and obtain formal HSE acceptance before commencing gas conveyance. The safety case must address: safe management of gas flow; supply emergency arrangements; response to gas escapes and incidents; gas composition specifications. HSE acceptance must be explicit — no tacit consent. Safety cases must be reviewed and re-accepted when network or operations change materially.
Pipelines Safety Regulations 1996 — distribution network
Gas distribution operators must notify HSE of major accident hazard pipelines and maintain a Major Accident Prevention Document. Pipelines above 7 barg pressure require a safety report under COMAH-style assessment. Operators must ensure the pipeline is designed, constructed, operated, and maintained in compliance with the regulations.
RIIO-GD price control compliance
Gas distribution licence holders are subject to the RIIO-GD price control framework. Current period: RIIO-GD2 (2021–2026). Annual regulatory accounts and performance data must be submitted to Ofgem. Incentive mechanisms apply based on service quality and network performance.
Network Emergency Co-ordinator (NEC) safety case compliance
Where two or more gas transporters operate on a network, there must be a sole Network Emergency Co-ordinator (NEC) with an HSE-accepted safety case. The NEC monitors network pressure and can direct gas flows during a Network Gas Supply Emergency. Gas transporters have a legal duty to cooperate with NEC directions.
Applies to all manufacture of gas; distribution of gaseous fuels through mains
Health and Safety at Work etc. Act 1974
General duties to employees and others. Particularly significant in the energy sector given major hazard risks. HSENI enforces in Northern Ireland.
Employers' Liability Insurance
Required for all employers. Sole traders with no employees exempt.
Environmental Permitting (England and Wales) Regulations 2016
Required for activities with emissions to air, water, or land. Equivalent regime in Scotland (SEPA under Pollution Prevention and Control (Scotland) Regulations 2012), Wales (NRW), and Northern Ireland (NIEA). Large combustion plant operators require specific IED permits.
Control of Major Accident Hazards (COMAH) Regulations 2015
Applies to energy sites holding dangerous substances (liquefied natural gas, hydrogen, flammable gases) above threshold quantities. Lower-tier sites must notify the competent authority and produce a major accident prevention policy; upper-tier sites must also produce a safety report and emergency plan.
Guidance for this activity
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