The regulatory framework for gas consists of a raft of legislation designed to ensure that the GB market provides safe and secure gas supplies for consumers. A few of the key pieces of legislation are outlined below.
DECC works with other Government Departments and Ofgem, the industry regulator, to ensure the regulations provide a robust and fit for purpose framework to enable the effective operation of the gas market.
- The Gas Act 1986 is the centre piece of onshore gas market regulation. It includes the licensing regime for gas transporter, shippers and suppliers, as well as the framework for the exemption regime. It requires that efficient systems are developed for the operation of gas transmission and distribution networks, and requires that reasonable requests for connection to the network are met within set times. The Act also sets out the rules for third party access.
- The Petroleum Act 1998 provides a licensing regime for onshore and offshore gas producing development. It also provides a consent regime for offshore pipelines.
- The Planning Act 2008 was introduced to create a more efficient planning system for nationally significant infrastructure, including gas supply infrastructure, that is located mostly in England.
- The Energy Act 2008 establishes a clear regulatory framework for offshore gas storage developments and Gas Unloading platforms and the extension of the Crown’s ability to grant leases for offshore gas storage and unloading to a maximum of 188 nautical miles within the UK’s continental shelf, known as the gas importation and storage zone. Offshore Gas storage in naturally occurring hydrocarbon reservoirs require both a Petroleum Act 1998 and an Energy Act 2008 licence. Offshore Gas storage in non hydrocarbon features (such as a salt dome) require only an Energy Act 2008 licence.
The Government keeps gas market regulation under review in order to ensure it continues to provide safe and secure gas supplies for consumers. To this end the Energy Act 2011 contains a number of measures to improve security of supply and to strengthen the third party access regime for upstream oil and gas infrastructure.
Safety regulations
Many pieces of legislation relate to safety. These are overseen by the Health and Safety Executive (HSE) and include:
More information can be found on the Health and Safety Executive (HSE): Gas health and safety law and enforcement web page.
European legislation
European legislation also has a considerable influence on our gas market. Most notably of late is the Third Energy Package (links to EU website) which consists of a group of measures designed to promote liberalisation across Europe’s energy markets. It aims to give consumers greater choice, fairer prices, cleaner energy and better security of supply. The requirements are currently being implemented into GB law.