PART I
GENERAL

(1) In these standard conditions, except where the context 
otherwise requires -

"the Act" means the Gas Act 1986;

"amount" in relation to gas, means the energy content thereof 
expressed in therms or kilowatt hours

"appointed day" means the day appointed under section 18(2) of 
the Gas Act 1995;

"bill" includes an invoice, account, statement or other 
instrument of the like character;

"British Gas plc" means the company which had that name on the 
appointed day whether or not that name is subsequently changed;

"charges for the supply of gas" includes, in relation to the 
licensee and a particular customer, charges made by the licensee 
in respect of the provision to that customer of a gas meter and 
cognate expressions shall be construed accordingly subject, 
however, to standard condition 7(9);

"chronically sick person" means any person who, by reason of 
chronic sickness, has special needs in connection with gas 
supplied to him, its use or the use of gas appliances or other 
gas fittings;

Condition 1:  Interpretation and construction

(1) In these standard conditions, except where the context 
otherwise requires -

"the Act" means the Gas Act 1986;

''amount" in relation to gas, means the energy content thereof 
expressed in therms or kilowatt hours;

"appointed day" means the day appointed under section 18(2) of 
the Gas Act 1995;

"bill" includes an invoice, account, statement or other 
instrument of the like character;

"British Gas plc" means the company which had that name on the 
appointed day whether or not that name is subsequently changed;

"charges for the supply of gas" includes, in relation to the 
licensee and a particular customer, charges made by the licensee 
in respect of the provision to that customer of a gas meter and 
cognate expressions shall be construed accordingly subject, 
however, to standard condition 7(9);

"chronically sick person" means any person who, by reason of 
chronic sickness, has special needs in connection with gas 
supplied to him, its use or the use of gas appliances or other 
gas fittings;

"contract" does not include a deemed contract as hereinafter 
defined but includes a contract which by virtue of paragraph 
19(2) of Schedule 5 to the Gas Act 1995 is deemed to have been 
made, and "contractual" shall be construed accordingly;

"the court" means, in relation to England and Wales, the High 
Court; and in relation to Scotland, the Court of Session;

"deemed contract" means a contract which, by virtue of paragraph 
a of Schedule 2B to the Act is deemed to have been made:

"deposit by way of security for the payment of charges" includes 
any payment which serves the like purpose;

"the Director" means the Director General of Gas Supply;

"disabled person" means any person who, by reason of any 
disability, has special needs in connection with gas supplied to 
him, its use or the use of gas appliances or other gas fittings 
and includes any person who is in receipt of a social security 
benefit by reason of any disability;

"domestic customer" has the meaning given by section 15A(10) of 
the Act and "non-domestic customer means a customer who is not a 
domestic customer;

"domestic purposes", in relation to the use of gas, means 
purposes which are not predominantly the purposes of trade or 
business or of the activities of a public body (including a 
government department and a local authority) or a charitable or 
other non-profit making organisation which do not constitute 
trade or business and ''non-domestic purposes": shall be 
construed accordingly;

"information" has the meaning given by section 48(1) of the Act 
and, without prejudice as aforesaid, includes information by way 
of forecasts or estimates;

''network code", in relation to a public gas transporter, means 
the document prepared by that transporter for the purposes of 
condition 7(2) of the Standard Conditions of Public Gas 
Transporters' Licences as incorporated in its licence;

"owned" in relation to a gas meter or other property, includes 
leased and cognate expressions shall be construed accordingly;

"quantity" and "volume", in relation to gas are synonymous;

"related person" means-

(a) in relation to an undertaking within the meaning of section 
259 of the Companies Act 1985(c) the principal undertaking"), a 
parent or subsidiary undertaking of the principal undertaking or 
a subsidiary undertaking of a parent undertaking of the principal 
undertaking, in each case within the meaning of section 258 of 
that Act, and

(b) in relation to any person (including such an undertaking), a 
connected person of that person within the meaning of section 286 
of the Taxation of Chargeable Gains Act 1992;(d)

"relevant shipper" means a gas shipper which has made 
arrangements in pursuance of which gas is conveyed to premises to 
which the licensee supplies gas;

"relevant supplier", in relation to any premises, means a gas 
supplier which supplies gas to those premises;

"relevant transporter" means, in relation to any premises or to a 
customer supplied with gas at any premises, the public gas 
transporter which conveys gas through pipes to those premises;

"standard condition" means, subject to paragraph (8), this or one 
of the following conditions and, in relation to a gas supplier 
other than the licensee, it means that condition as incorporated 
in that supplier's licence, "incorporated" means incorporated 
with or without modification, and cognate expressions shall be 
construed accordingly;

"supply gas", in relation to any premises or any person, means 
the supply of gas which has been conveyed to those premises, or 
that person's premises, by a public gas transporter and includes 
the making available of a supply of such gas at the premises in 
question at a time when no gas is being taken, and cognate 
expressions shall be construed accordingly, and

"terms", in relation to a contract or deemed contract, includes 
conditions.

(2) Any reference in a standard condition to the purposes of 
that condition generally is a reference to the purposes of that 
condition as incorporated in this licence and as incorporated in 
each other licence under section 7A(1) of the Act (whenever 
granted) which incorporates it.

(3) Without prejudice to sections 11 and 23(1) of the 
Interpretation Act 1978(e)-

(a) these standard conditions shall be interpreted and construed 
in like manner as an Act of Parliament passed after the 
commencement of the said Act of 1978, and

(b) expressions used in these standard conditions which are also 
used in Part I of the Act shall, except where the context 
otherwise requires, have the same meaning as in that Part

(4) These standard conditions shall have effect as if, in 
relation to a licence holder who is a natural person, for the 
words "it", "its" and "which" there were substituted the words 
"he", "his" and "whom", and cognate expressions shall be 
construed accordingly.

(5) The provisions of section 46(1) of the Act (service of 
notices etc) shall have effect as if set out herein and as if for 
the words "this Part or regulations made under this Part" there 
were substituted the words "these standard conditions".

(6) Anything required by these standard conditions to be done in 
writing may be done by facsimile transmission of the instrument 
in question or by other electronic means and, in such case -

(a) the original instrument or other confirmation in writing 
shall be delivered or sent by pre-paid first-class post as soon 
as is reasonably practicable, and

(b) where the means of transmission had been agreed in advance 
between the parties concerned, in the absence of and pending such 
confirmation, there shall be a rebuttable presumption that what 
was received duly represented the original instrument.

(7) Where the licensee is required by these standard conditions 
to do anything within a specified period or by a specified time 
but fails to do so, that requirement shall continue to have 
effect after the expiry of that period or after that time without 
prejudice, however, to any consequence of its not having done 
that thing within the specified period or by the specified time.

(8) Any reference in these standard conditions to-

(a) a provision thereof;

(b) a provision of the Standard Conditions of Gas Shippers' 
Licences, or

(c) a provision of the Standard Conditions of Public Gas
Transporters' Licences,

shall, if these or the Standard Conditions in question come to be 
modified, be construed, so far as the context permits, as a 
reference to the corresponding provision of these or the other 
Standard Conditions in question as modified.

(9)	In relation to any time after 31st December 1999 -

(a) references in these standard conditions to 2,500 and 75,000 
therms shall be construed as references to 73,000 and 2,196.000 
kilowatt hours respectively; and

(b) other references in these standard conditions to therms, and 
references in these standard conditions to therms or kilowatt 
hours, shall be construed as references to kilowatt hours.

(10) Where the holder of this licence is also a gas shipper and 
it appears that, as a result, it is necessary or expedient, for 
the purpose of giving full effect to any provision of these 
standard conditions that it should have effect subject to 
modifications -

(a) during the period of 9 months beginning with the appointed 
day that provision shall have effect, unless subparagraph (b) 
applies, subject to such modifications as necessary or expedient 
for that purpose, and

(b) if, during that period, for the purposes of this condition 
generally, the Secretary of State designates modifications to 
that provision which appear to him to be necessary or expedient 
for that purpose, that provision shall thereafter (whether or not 
that period has expired) have effect subject to the designated 
modifications-

(11) Without prejudice to the provisions of paragraph (1) 
defining the expression "supply gas" and providing for the 
construction of cognate expressions, the provisions of the 
following standard conditions shall not apply in, or in 
connection with, a case in which the licensee supplies to any 
premises gas which

(a)  has been conveyed by it to those premises, by means of a 
pipe line system, in pursuance of the exception to section 
5(1)(a) of the Act contained in paragraph 3(1) of Schedule 2A 
thereto, and

(b)  has not be conveyed by a public gas transporter,

except that where the pipe-line system mentioned in sub paragraph 
(a) was used as there mentioned on the appointed day, Part III of 
these standard conditions shall apply.

(12)  In a case in which gas

(a)  has been conveyed to a person's premises by a public gas 
transporter, and

(b)  is conveyed by that person, in pursuance of an exemption 
from section 5(1)(a) of the Act granted under section 6A thereof, 
to other premises for supply by the licensee to some other 
person;

paragraph (13) shall apply and, without prejudice, to any 
modifications thereunder, these standard conditions shall have 
effect as if for the purposes of the definition of "supply gas" 
in paragraph (i), the person first mentioned in this paragraph 
were public gas transporter.

(13)  Where this paragraph applies and it appears necessary on 
expedient that any provision of these standard conditions, for 
the purpose of securing that they have, as nearly as may be, the 
like effect as they would have had if the gas conveyed to the 
other premises mentioned in sub-paragraph (b) of paragraph (12) 
had been conveyed thereto by the public gas transporter mentioned 
in sub-paragraph (a) of that paragraph should have effect subject 
to modifications

(a)  during the period of 9 months beginning with the appointed 
day that provision shall have effect unless sub-paragraph (b) 
applies, subject to such modifications as are necessary or 
expedient for that purpose, and

(b)  if, during that period, for the purposes of this condition 
generally, the Secretary of State designates modifications to 
that provision which appear to him to be necessary or expedient 
for that purpose that provision shall thereafter (whether or not 
that period has expired) have effect subject to the designated 
modifications;

and, any question arising under sub-paragraph (a) as to whether 
modifications are necessary or expedient shall be determined by 
the Secretary of State

(14)  Except where the context otherwise requires, a reference in 
a standard condition to a paragraph is a reference to a paragraph 
of that condition and a reference in a paragraph to a 
sub-paragraph is a reference to a sub-paragraph of that 
paragraph.

PART II

SUPPLY OBLIGATIONS

Condition 2: Obligation to supply domestic customers

(1) Subject to the following provisions of this condition and to 
standard conditions 7 and 8-

(a) the licensee shall supply gas, as soon as is reasonably 
practicable, to every potential domestic customer who requests 
such a supply at premises specified in the request of which he is 
the owner or occupier and which are connected, whether directly 
or by means of a service pipe, to such a relevant main as is 
mentioned in paragraph (6);

(b) where it is supplying gas to a particular domestic customer 
at particular premises, the licensee shall continue to supply gas 
to that customer at those premises so long as the customer 
requires the licensee to provide such a supply, and

(c) not later than 30 days, or such shorter period as may be 
reasonable in the circumstances of the case, before a contract 
for the supply of gas to a domestic customer at particular 
premises expires or otherwise terminates-

(i) unless the customer has informed the licensee, or indicated 
by his actions, that he does not want a new contract, it shall in 
writing both offer him a new contract for the supply of gas at 
those premises (being a contract which appears to it to be 
appropriate) and inform him that contracts on other terms may be 
available and as to how information as to their terms may be 
obtained so, however, that it shall be sufficient compliance with 
the requirement to offer an appropriate new contract if only the 
principal terms of the contract offered are set out, and

(ii) unless the customer has informed the licensee, or indicated 
by his actions, that he will not want to continue to be supplied 
with gas by the licensee, it shall notify the customer, in 
writing, of the principal terms of the deemed contract that would 
apply upon the expiry or termination of the contract if no new 
contract is agreed, 

and, for the purposes of this sub-paragraph, "principal terms" 
means terms as to the charges and such other terms as might 
affect the reasonable evaluation of the contract or deemed 
contract and, where the contract first referred to therein is a 
contract which, by virtue of paragraph 19(2) of Schedule 5 to the 
Gas Act 1995, is deemed to have been made, it shall be a 
sufficient compliance therewith if the offer of a new contract, 
the information and notification required to be made or given 
thereby is made or given to the person who reasonably appears to 
the licensee to be the customer concerned.

(2) Subject to the provisions of these standard conditions, the 
licensee shall on request by the person concerned -

(a) offer to supply gas to a potential domestic customer in 
pursuance of paragraph (1)(a), and

(b) offer to continue to supply gas to a domestic customer in 
pursuance of paragraph (1)(b)-

(i) as respects a period immediately following the expiry or 
termination of a contract for such supply;

(ii) where gas is being supplied in pursuance of directions given 
under standard condition 5, as respects a period immediately 
following the termination of the deemed contract under which it 
is so supplied, or

(iii) where gas is being supplied, otherwise than as aforesaid, 
under a deemed contract,

on any terms determined in accordance with standard condition 3 
which are applicable in the particular case.

(3) The licensee shall deal with all requests for a supply of 
gas without undue preference or undue discrimination in their 
processing.

(4) For the purposes of paragraphs (1) and (2), a person shall 
be, in relation to the licensee, a potential domestic customer at 
particular premises if he is a person who would be a domestic 
customer if supplied with gas at those premises, provided that -

(a) the licensee is licensed under section 7A(l)(a) of the Act to 
supply gas to those premises, and

(b) in relation to those premises, no person is bound by the 
provisions of a contract with any gas supplier (including the 
licensee) to take supplies from that supplier, or, if a person is 
so bound, those provisions will either expire or have been 
terminated by the person concerned before the date from which a 
supply of gas is sought from the licensee.

(5) For the said purposes, a person may be a potential domestic 
customer, notwithstanding that he already has a contract for the 
supply of gas, if his request and that contract relate to the 
supply of gas to different premises.

(6) The relevant main referred to in paragraph (1)(a) is one 
which forms part of, is directly or indirectly connected to, or 
conveys gas previously conveyed by, the main pipe-line system 
which is for the time being operated by -

(a) British Gas plc, or

(b) a public gas transporter which is operating a pipe-line 
system consisting of, or including, the whole or any part of what 
had been British Gas plc's main pipe-line system.

(7) Where the licensee has applied to the Director for the 
revocation of its licence or for a restriction of its licence 
under section 7A(6) of the Act specifying premises situated in a 
particular area or of a particular description ("excluded 
premises") and the Director has granted that request, or 
confirmed in writing his intention to do so, then, for such 
period not exceeding 3 months, or such longer period of not more 
than 6 months as the Director may accept, prior to the date on 
which the revocation or restriction takes effect, or is intended 
to take effect, as is notified to the Director by the licensee -

(a) nothing in paragraph (1)(a) shall require it to supply gas, 
in the case of revocation, at any premises or, in the case of a 
restriction, at excluded premises;

(b) notwithstanding paragraph (1)(c), the licensee shall not 
offer or enter into any new contract to supply gas to a domestic 
customer, in the case of revocation, at any premises or, in the 
case of a restriction, at excluded premises.

(8) Where, in preparation for a restriction or the revocation of 
its licence, the licensee is making arrangements for securing 
continuity of supply for its customers supplied with gas in 
pursuance of deemed contracts, it shall, except in so far as the 
Director otherwise consents-

(a) in making those arrangements, reasonably endeavour to select 
one or more new suppliers which offer or will offer comparable 
services at the lowest available cost, and

(b) use its reasonable endeavours to give its customers likely to 
be affected reasonable notice of those arrangements.

Condition 3:  Standard contractual terms of supply to domestic 
customers and return of deposits

(1) Subject to paragraphs (3), (4) and (5), the licensee -

(a) shall determine the terms on which it is prepared to enter 
into a contract for the supply of gas to a domestic customer and, 
for the purposes of this sub-paragraph

(i) different terms may be determined for different cases or 
classes of cases, or for different areas;

(ii) terms as to charges may be expressed as subject to 
transportation adjustments within the meaning of paragraph (2) 
but, in such case, the licensee shall, if so requested by a 
potential domestic customer (within the meaning of standard 
condition 2), give him particulars, so far as is reasonably 
practicable, of the transportation adjustments (if any) likely to 
be made to the charges in respect of the supply of gas to 
premises specified in the request;

(iii) the terms shall include ones which correspond, as nearly as 
may be (save in so far as they may provide for lower charges), to 
those of a deemed contract which would arise in relation to the 
supply of gas at any premises by the licensee to a domestic 
customer who is in occupation of the premises and, on or after 
entering into occupation, first takes gas otherwise than in 
pursuance of a contract in a case in which the licensee has 
ceased to supply gas to a domestic customer who was his immediate 
predecessor in occupation of the premises, and

(iv) so far as the terms provide for charges related to the 
amount of gas supplied, subject to paragraph (14), they shall 
provide that the number of therms or kilowatt hours supplied 
shall be calculated in the same manner as the number of therms or 
kilowatt hours conveyed to the premises falls to be calculated in 
pursuance of section 12(1) of the Act;

(b) shall give written notice of those terms and of any variation 
therein (and if the Director so requires, a revised notice of the 
terms) to the Director and shall furnish the Gas Consumers' 
Council, and any person who requests a copy, with a copy of any 
such notice, and

(c) shall publish, in such manner as in the reasonable opinion of 
the licensee will secure adequate publicity for them -

(i) the principal terms determined in accordance with sub-
paragraph (a) and any variation in the principal terms, and

(ii) particulars of any inducements offered to persons who enter 
into contracts for the supply of gas, or such contracts 
containing particular terms, to the extent to which they might 
reasonably be expected to materially affect a person's decision 
to enter into a contract for the supply of gas or a contract 
containing particular terms;

and, for the purposes of sub-paragraph (c), "principal terms" 
means terms as to charges (and as to whether or not they are 
expressed as subject to transportation adjustments within the 
meaning of paragraph (2)) and such other terms as might affect 
the reasonable evaluation of the terms determined in accordance 
with sub-paragraph (a).

(2) The reference in paragraph (1)(a)(ii) to transportation 
adjustments is a reference to -

(a) where the relevant shipper would be required by the relevant 
transporter to pay supplemental charges
(within the meaning of condition 6 of the Standard Conditions of 
Public Gas Transporters' Licences) in respect of particular 
premises in a designated area (within the meaning of that 
condition), an addition to the charges made in the case of those 
premises which equals those supplemental charges;

(b) where, in relation to particular premises, the relevant 
transporter is not (subject to paragraph (13)) British Gas plc 
and the aggregate of the charges made by the relevant transporter 
and the relevant charges made by British Gas plc in respect of 
the conveyance of the gas supplied to the premises exceeds the 
relevant charges made by British Gas plc in respect of the 
conveyance of gas to comparable premises, an addition to the 
charges made in the case of those premises which equals that 
excess, and

(c) where, in relation to particular premises, the relevant 
transporter is not (subject to paragraph (13)) British Gas plc 
and the relevant charges made by British Gas plc in respect of 
the conveyance of gas to comparable premises exceed the aggregate 
of the charges made by the relevant transporter and the relevant 
charges made by British Gas plc in respect of the conveyance of 
the gas supplied to the premises, a reduction in the charges made 
in the case of those premises which equals that excess:

and, for the purposes of sub-paragraphs (b) and (c), "relevant 
charges" means so much of the charges in respect of the 
conveyance of gas as depend upon where it is taken out of the 
transporter's pipe-line system and "comparable premises" means 
premises at which the reasonably expected consumption of gas is 
similar to that at the particular premises in question and which 
are situated in the same area of Great Britain as those premises.

(3) The terms as to charges and otherwise of a contract to 
supply gas to a domestic customer shall be such as are agreed 
between the licensee and the customer concerned so, however, 
that-

(a) subject to paragraphs (4) and (5), the terms agreed by the 
licensee shall be in conformity with those for the time being 
determined under paragraph (1)(a);

(b) where the contract for the supply of gas provides for gas to 
be supplied through a pre-payment meter, the licensee shall not 
require the customer to make a deposit by way of security for the 
payment of charges unless it is reasonable to do so as a result 
of the conduct of the customer;

(c) where that contract does not so provide, the licensee shall 
not require the customer to make such a deposit which either -

(i) exceeds what is reasonable in all the circumstances of the 
case, or

(ii) exceeds the charges payable in respect of the highest 
aggregate consumption of gas by the customer reasonably expected 
to occur in any period of 6 months during the period of 12 months 
following the date on which the deposit is requested.

(4) Where the licensee proposes, in pursuance of a single 
contract, to supply to a domestic customer both gas and other 
goods or services relating to the supply or use of gas -

(a) excluding -

(i) the provision of a meter, of any device or facilities 
designated by the Director for the purposes hereof as serving the 
like purposes as a pre-payment meter or of pre-payment 
facilities, and

(ii) any related services or services in respect of the reading 
of a meter, and

(b) including, in particular, the provision of a service pipe or 
the provision of goods or services designed or calculated to 
promote the efficient use of energy,

the contract agreed by the licensee shall identify, separately, 
the charges to be made for the supply of gas, for other goods 
sold, for other goods provided on hire and for services, and 
paragraph (5) shall have effect.

(5) In such a case -

(a) if the contract is (disregarding any provision for its 
renewal) for a specified period, whether or not followed by an 
indefinite period, and the aggregate annual rate of the 
hypothetical charges for the other goods and services mentioned 
in paragraph (4), if spread evenly over the specified period, 
would exceed 100 pounds, adjusted in accordance with standard condition 
36 by reference to the date on which the contract is executed 
where it is executed on or after the first anniversary of the 
appointed day, paragraphs (1)(a) and (3)(a) shall not apply in 
relation to the contract, or, where it is a contract for a 
specified period followed by an indefinite period, to the 
contract so far as it relates to the specified period, or

(b) if the contract is for an indefinite period and the aggregate 
annual rate of the hypothetical charges for the other goods and 
services mentioned in paragraph (4), if spread evenly over the 
period for which the actual charges therefor are made ("the 
initial period"), would exceed 100 pounds adjusted as aforesaid, 
paragraphs (1)(a) and (3) (a) shall not apply to the contract so 
far as it relates to the initial period,

and, for the purposes of this paragraph, any reference to the 
hypothetical charges for goods sold or provided on hire or for 
services is a reference to the charges which would reasonably be 
expected to be made therefor under a contract which did not also 
provide for the supply of gas, and any question arising under 
this paragraph as to the amount of any such hypothetical charges 
shall be determined by the Director.

(6) Subject as hereinafter provided, where, in pursuance of a 
contract for the supply of gas, the licensee requires a domestic 
customer to make a deposit by way of security for the payment of 
charges -

(a) unless, having regard to the conduct of the customer, it is 
reasonable that the deposit be retained, the licensee shall repay 
it if either -

(i) all demands made in writing in any period of 12 months for 
payments due in respect of the supply of gas have been complied 
with by the customer within 28 days after the making of the 
demand, or

(ii) no such demands have been made in any period of 12 months by 
reason of the customer's compliance with his contractual 
obligations relating to the making of payments for gas,

and shall make such repayment within 2 months of the expiry of 
the 12 month period in question;

(b) if the licensee ceases to supply gas to the customer and he 
has paid all charges in respect of gas supplied to him, it shall 
repay the deposit;

(c) if the licensee having held the deposit for more than a month 
repays it in pursuance of sub-paragraph (a) or (b), it shall pay 
the customer simple interest on the deposit at the rate which is 
from time to time 1% less than the base rate of Barclays Bank PLC 
or, if there is no such base rate, less than such base rate as 
the Director may designate for the purposes hereof.

(7) In paragraphs (3) to (6), "agree" and "require" mean agree 
and require by way of a term of the contract, and cognate 
expressions shall be construed accordingly.

(8) Paragraphs (9) and (10) shall apply where one gas supplier 
("the transferor"), with the agreement of another gas supplier 
("the transferee" ), assigns to that other supplier its rights 
and liabilities under contracts for the supply of gas to 
particular domestic customers whose contracts allow of such 
assignment ("an assignment" and "the transferred customers").

(9) Where this paragraph applies and the licensee is the 
transferor, if it so elects paragraph (6) (b) shall not have 
effect in relation to a deposit on the licensee ceasing to supply 
a transferred customer by reason of an assignment but it shall 
pass the deposit to the transferee, together with interest 
thereon calculated as provided in paragraph (6)(c). 

(10) Where this paragraph applies and the licensee is the 
transferee, paragraph (6) shall have effect, in relation to any 
deposit passed to it by the transferee, as if the transferee were 
the same person in law as the transferor.

(11) For the purposes of paragraphs (6) to (10), any reference 
to a deposit is, except where the context otherwise requires, a 
reference to so much of the deposit as, from time to time, has 
not been applied to meet charges in respect of the supply of gas.

(12) Notwithstanding the definition of the expression "deposit 
by way of security for the payment of charges'' in standard 
condition 1(1), the provisions contained in paragraphs (6) to 
(11) shall not apply in relation to a payment which is not a 
deposit; but, in relation to a payment of any class or 
description which serves the like purpose as a deposit by way of 
security for the payment of charges, paragraphs (6) to (11) shall 
have effect as if they contained such provisions, if any, as are 
designated by the Director, for the purposes of this condition 
generally, as having, in the case of payments of that class or 
description, as nearly as may be and having regard to their 
nature, an effect corresponding to that of the said paragraphs in 
their application in relation to deposits.

(13) If the whole or a significant part of the pipe-line system 
operated by British Gas plc on the appointed day comes to be 
operated by another public gas transporter ("the relevant 
system") and that transporter (not being the relevant 
transporter) conveys by means of the relevant system the gas that 
is subsequently conveyed to particular premises by the relevant 
transporter then, in relation to those premises, any reference in 
paragraph (2)(b) or (c) to British Gas plc shall have effect as 
if it were a reference to that other transporter; and any 
question arising under this paragraph as to whether a part of the 
pipe-line system operated by British Gas plc on the appointed day 
is a significant part thereof shall be determined by the 
Director.

(14) It shall be a sufficient compliance with paragraph (1) (a) 
(iv) if terms providing for such charges as are there mentioned 
provide that the number of therms or kilowatt hours is calculated 
as there mentioned except -

(a) in relation to gas supplied during the period of 10 months 
beginning with the appointed day or such longer period as the 
Director may accept in the case of this sub-paragraph, for the 
purpose of this condition generally that no adjustment is made in 
respect of a temperature and pressure conversion factor within 
the meaning of regulations from time to time in force under 
section 12 of the Act, or

(b) in relation to gas supplied during the period of 10 months 
beginning with the appointed day or such longer period as the 
Director may accept in the case of this sub-paragraph, for, the 
purposes of this condition generally, and without prejudice to 
the application also of sub-paragraph (a), that the calorific 
value of the gas is determined on a weekly basis from daily 
calorific values in a manner which does not unduly discriminate 
between customers and is not prejudicial to their interests, and 
any question arising under this sub-paragraph as to whether that 
manner satisfies those criteria shall be determined by the 
Director.

(15) Where, in pursuance of paragraph (14)(a), the number of 
therms or kilowatt hours of gas supplied is calculated without 
any such adjustment as is there mentioned, the terms determined 
under paragraph (1)(a) shall provide that, on such an adjustment 
coming to be made, there shall be a consequential reduction in 
the charges which would have been made for therms or kilowatt 
hours of gas supplied had the adjustment continued not to be 
made.

Condition 4: Deemed contracts

(1) Subject to paragraph (9) -

(a) when making or revising or considering whether or not to 
revise the scheme it is required to make under paragraph 8 of 
Schedule 2B to the Act ("the scheme"), or

(b) where the scheme provides that any terms in respect of the 
supply of gas shall be determined in accordance with the 
provisions thereof, when determining or re-determining those 
terms,

the licensee shall use its reasonable endeavours to ensure that 
the terms for the supply of gas in pursuance of a deemed contract 
are not unduly onerous within the meaning of paragraph (2).

(2) Subject to paragraphs (3) and (9), in the case of any class 
of domestic customers or of any class of non-domestic customers, 
terms shall be taken to be unduly onerous if the revenue derived 
from supplying gas to customers of the class in question on those 
terms -

(a) significantly exceeds the costs incurred in so supplying gas, 
and

(b) exceeds such costs by significantly more than the licensee's 
revenue exceeds costs in the case of the generality of its 
domestic customers or, as the case may be, in the case of the 
generality of its non-domestic customers supplied with gas at 
particular premises at a rate which is reasonably expected not to 
exceed 75,000 therms a year.

(3)  Paragraph (2) shall have effect as hereinafter provided, 
namely -

(a) where the licensee has not elected as mentioned in sub-
paragraph (5) of paragraph 8 of Schedule 2B to the Act or where 
it has withdrawn such an election and the modification of sub-
paragraph (4) by sub-paragraph (5) of the said paragraph 8 has, 
in pursuance of subparagraph (6) thereof, ceased to have any 
effect, paragraph (2) shall have effect as if both references to 
non-domestic customers were omitted;

(b) the reference in paragraph (2)(b) to the generality of the 
licensee's domestic or (subject as aforesaid) non-domestic 
customers does not include a reference to customers supplied with 
gas in pursuance of directions given under standard condition 5 
but otherwise is a reference to customers supplied with gas in 
pursuance of either a contract or a deemed contract, and

(c) in calculating for the purposes of sub-paragraph (a) or (b) 
of paragraph (2) the extent to which revenue exceeds costs (in 
either the case of a class of customers supplied with gas in 
pursuance of a deemed contract or the case mentioned in the said 
subparagraph (b)), no account shall be taken of any costs 
attributable to any promotional, marketing or advertising 
activities of the licensee.

(4) Where the scheme provides that any terms in respect of the 
supply of gas shall be determined in accordance with the 
provisions thereof and the licensee so determines or re-
determines (in whole or in part) such terms, it shall, as soon as 
is reasonably practicable, send the Director -

(a) a copy of the terms so determined, or

(b) in the case of a re- determination, a notice summarising the 
re-determination and, if he so requests, a copy of the terms as 
they have effect following their re-determination, 

and, at the request of any other person, it shall supply that 
person with a copy of anything sent to the Director in pursuance 
of sub-paragraph (a) or (b).

(5) The scheme and any determination or re-determination in 
accordance therewith shall be such that, in the scheme's 
application in a case in which gas is supplied in pursuance of 
directions given under standard condition 5(1), the amount of any 
charges for gas so supplied complies with the provisions of 
standard condition 5(7) and (8).

(6) Where the licensee supplies a customer with gas in pursuance 
of a deemed contract, it shall use its reasonable endeavours to 
furnish the customer with -

(a) details of the principal terms of that deemed contract 
together with written notice of his right under paragraph 8(11) 
(c) of Schedule 2B to the Act to request a copy of the scheme or 
of any revision thereof, and

(b) unless he is a non-domestic customer or is supplied with gas 
in pursuance of directions given under standard condition 5(1), 
written notice that contracts on terms other than those of his 
deemed contract may be available and as to how information can be 
obtained as to any such terms;

and, for the purposes of sub-paragraph (a), "principal terms" 
means terms as to charges and such other terms as might affect 
the reasonable evaluation of the deemed contract.

(7) Subject to any necessary modifications, standard condition 3 
(1)(a)(iv), (3)(b) and (c) and (7) shall apply in relation to a 
deemed contract for the supply of gas to a domestic customer as 
it applies to a contract for such supply.

(8) Where a deemed contract includes such terms and conditions as 
are mentioned in paragraph 8(9) of Schedule 2B to the Act, in 
determining thereunder the number of therms or kilowatt hours 
which are to be treated as supplied or taken, the licensee shall 
act on a reasonable basis, taking into account available 
consumption data for the premises in question and other relevant 
factors.

(9) Paragraphs (1) to (3) shall not apply in relation to the 
scheme in its application where gas is supplied in pursuance of 
directions given under standard condition 5(1) or (13).

Condition 5: Last resort supply

(1) Where the Director notifies the licensee that it appears to 
him that -

(a) circumstances have arisen which would entitle him to revoke 
or suspend the licence of a gas supplier other than the licensee 
("the other supplier") otherwise than with the agreement of the 
other supplier, and

(b) the licensee could comply with the direction without 
significantly prejudicing its ability -

(i) to continue to supply its customers, and

(ii) to fulfil its contractual obligations for the supply of gas,

and by notice in writing he directs the licensee to supply gas 
to domestic customers in accordance with this condition, the 
licensee shall, subject to paragraph (3) and standard condition 
7, comply with the direction.

(2) Any direction under paragraph (1) (''the direction") shall 
have effect only in the event of the revocation or suspension of 
the other supplier' s licence and as from the time at which such 
revocation or suspension takes effect and only for such period, 
not exceeding 6 months, as is specified in the direction; and the 
gas shall be supplied to domestic customers of the other supplier 
at such premises as are specified or described in the direction 
and which the licensee is authorised by its licence to supply.

(3) The licensee's obligations under the direction to supply gas 
to a particular customer at particular premises shall not apply, 
or shall cease to apply, if the licensee enters into a contract 
with that customer for the supply of gas at the premises or if a 
gas supplier other than the licensee supplies gas to that 
customer at the premises.

(4) The licensee shall use all reasonable endeavours to secure 
that a meter reading is taken within 14 days of the direction 
taking effect at each of the premises at which it is required 
thereby to supply gas so, however, that the licensee need not so 
take a meter reading -

(a) where the Director accepts that it would not be feasible or 
economic to do so, or

(b) where to do so would necessitate the entering of particular 
premises without the consent of the occupier or the seeking of 
entry on more than one occasion.

(5) Unless it has already done so, as soon as is reasonably 
practicable after the direction has taken effect, the licensee 
shall send a written notice to each of the premises specified or 
described in the direction -

(a) setting out the charges to be made for gas supplied in 
pursuance of the direction by virtue of the scheme made by the 
licensee under paragraph 8 of Schedule 2B to the Act ("the 
scheme"), and, if those charges are not set out in, but fall to 
be determined in accordance with provisions of, the scheme (and, 
accordingly, may vary from time to time), summarising those 
provisions, and

(b) advising the customer in question that, notwithstanding any 
contract he may have had with the other supplier, that supplier 
is no longer supplying him with gas and has not done so since the 
direction took effect or, where the notice has been sent before 
the direction has taken effect, will be no longer supplying him 
with gas if it takes effect.

(6) Unless, or except to the extent that, the Director consents 
otherwise -

(a) within the period of 6 days beginning with the day on which 
the direction takes effect or the period of 15 days beginning 
with the day on which the direction was given, whichever first 
expires, the licensee shall give the Director such a notice as is 
described in paragraph (5)(a) together with, where the charges 
fall to be determined in accordance with provisions of the 
scheme, an indication of any likely changes in those charges, and

(b) so far as is reasonably practicable, the licensee shall give 
the Director notice of any increase in charges to be made for gas 
supplied in pursuance of the direction which is reasonably 
expected or proposed and shall give such a notice at least 5 days 
before the expected or proposed increase takes effect.

(7) The charges to be made from time to time by the licensee for 
gas supplied to any premises in pursuance of the direction -

(a) before the licensee has taken a meter reading at those 
premises, or, if earlier, the expiry of the period of 14 days 
from the direction taking effect, shall be the same as those 
which would be made under the deemed contract which would arise 
in relation to the supply of gas at any premises by the licensee 
to a domestic customer -

(i) who is in occupation of the premises;

(ii) who, on or after entering into occupation of the premises, 
first takes gas otherwise than in pursuance of a contract, and

(iii) whose immediate predecessor in occupation of the premises 
was a domestic customer of the licensee, supplied with gas 
thereat, but has ceased to be so supplied,

where the relevant considerations were the same, in particular, 
those relating to the expected rate of supply, method of paying 
charges and the location of the premises, and

(b) after the licensee has taken such a meter reading or after 
the expiry of that period, as the case may be -

(i) subject as hereinafter provided, shall be such that it may 
reasonably be expected that the aggregate charges made for gas 
supplied in pursuance of the direction will approximately equal 
the licensee's reasonable costs in so supplying the gas 
(including such costs attributable to the acquisition of gas at 
short notice) together with a reasonable profit;

(ii) if, either at the time of the giving of the direction or 
within the period of 5 days following the receipt by him of a 
notice given in pursuance of paragraph (6)(a) or (b), the 
Director has given the licensee a notice informing it that he is 
of the opinion that charges specified or described in the notice 
would be likely to result in hardship being suffered by 
customers, shall not exceed those approved by him in the notice 
as charges which would avoid, or mitigate, such hardship,

so, however, that the licensee shall not be required by sub-
paragraph (b) to make charges which are less than those which 
would be made under such a deemed contract as is mentioned in 
sub-paragraph (a).

(8) The terms as to charges and otherwise on which the licensee 
supplies gas in pursuance of the direction shall not, save as may 
be necessary to comply with paragraph (7)(b)(ii), be such as to 
show any undue preference or any undue discrimination as between 
any persons or classes of persons to whom it is so supplying gas.

(9) The licensee shall not, in connection with the direction, 
make any claim in relation to the sum mentioned in standard 
condition 9(5) as incorporated in the other supplier's licence 
unless -

(a) the claim is made as soon as is reasonably practicable after 
the relevant amount mentioned in paragraph (12) has been 
determined. and

(b) the claim does not exceed the relevant amount so mentioned.

(10) For the purposes of this and the next following paragraph -

"A" means the total number of premises to which public gas 
transporters convey gas for supply to domestic customers:

"B" means the total number of premises to which public gas 
transporters so convey gas disregarding any premises to which gas 
is conveyed by a transporter which only so conveys gas to a 
number of premises which is less than O.25% of A, and

"C" means the number of premises to which the transporter in 
question so conveys gas.

(11) The licensee shall not, in connection with the direction, 
make any last resort payment claim for the purposes of condition 
10 of the Standard Conditions of Public Gas Transporters' 
Licences as incorporated in a public gas transporter's licence 
unless -

(a) the number of premises to which the transporter in question 
conveys gas for supply to domestic customers exceeds 0.25% of A;

(b) the claim is submitted to the transporter in question as soon 
as is reasonably practicable after the relevant amount mentioned 
in paragraph (12) and the sum mentioned in sub-paragraph (c) have 
been determined;

(c) the relevant amount so mentioned exceeds any sum payable to 
the licensee as mentioned in standard condition 9(5) as 
incorporated in the other supplier's licence and

(d) the amount of the claim does not exceed the public gas 
transporter's proportionate share of that excess, and, for the 
purposes hereof, a transporter's proportionate share shall be 
that represented by the fraction -

C
____
B

and any last resort payment claim shall specify whether payment 
is to be made by quarterly or monthly instalments and, 
immediately after submitting such a claim to one or more public 
gas transporters, the licensee shall send a copy of each claim to 
the Director.

(12) The relevant amount referred to in paragraphs (9) and (11) 
is the amount notified in writing by the licensee to the 
Director, within 6 months of the direction ceasing to have effect 
or such longer period as the Director may approve in a particular 
case, as being the amount (if any) by which -

(a) the aggregate costs (including interest on working capital) 
reasonably incurred by the licensee in supplying gas in pursuance 
of the direction, together with a reasonable profit, exceed

(b) the aggregate amounts recovered by the licensee by way of 
charges for gas supplied in pursuance of the direction (after 
taking all reasonable steps to recover such charges),

unless the Director, within three months after receiving such 
notification, and such supporting information as he may 
reasonably require for the purposes of this paragraph, has, after 
consulting the licensee, formed the opinion that different 
amounts more accurately reflect the amounts described in (a) or 
(b), in which case the licensee shall comply with any direction 
given by him that the relevant amount be recalculated 
accordingly.

(13) Where the Director notifies the licensee that it appears to 
him that the circumstances mentioned in paragraph (1)(a) have 
arisen in the case of a gas supplier other than the licensee and 
by notice in writing given to the licensee with its consent he 
directs it to supply gas at such premises supplied by the other 
supplier as may be specified or described in the direction, being 
premises within the description set out in section 7A(1)(b) of 
the Act (other than premises which could reasonably be expected 
to be supplied with gas at a rate exceeding 75, 000 therms a 
year) for such period not exceeding 6 months as may be specified 
in the direction, the licensee shall comply therewith.

(14) If the licensee enters into any new contract for the 
purchase of gas for the purpose of complying with any directions 
under this condition, it shall use its reasonable endeavours to 
purchase the gas economically, having regard to the time 
available to secure the supplies.

Condition 6:  Special customer payment claims

(1) This condition has effect in relation to a special customer 
payment claim, within the meaning of condition 10 of the Standard 
Conditions of Public Gas Transporters' Licences, which the 
licensee may wish to make and the amount which it may claim.

(2) The licensee shall not make a special customer payment claim 
in respect of any year before the year 1999 but on or before 1st 
March in any subsequent year the licensee may give notice (a 
"special customer notice") to the Director stating that, in its 
opinion -

(a) during the previous year the number of premises supplied by 
it (both alone and taken with its related persons ) in respect of 
which the customers are domestic customers -

(i) who, subject to paragraph (12), are of pensionable age, or 
disabled or chronically sick persons, or

(ii) who have defaulted or fallen into arrears in the payment of 
charges for gas supplied,

in each case expressed as a proportion of the total number of 
premises so supplied in respect of which the customers are 
domestic customers, is an undue proportion (within the meaning of 
paragraph (11));

(b) as is appropriate in the circumstances of the case -

(i) it has incurred costs in providing such services as are 
mentioned in standard conditions 17 and 18 to such domestic 
customers as are mentioned in sub-paragraph (a)(i), or

(ii) it is not both reasonable and practicable for it to recover 
from such domestic customers as are mentioned in sub-paragraph 
(a) (ii) all or part of the charges made for the supply of gas or 
of the costs associated with recovering such charges 
(disregarding any charges for the supply of gas by way of 
interest when payment has not been made within a specified period 
of written demand being made therefor), and

(c) the ability of the licensee to finance the carrying on of 
activities authorised or required by this licence has, in 
consequence, been materially affected,

and specifying the amount which the licensee considers is 
necessary to reimburse to it the relevant proportion (within the 
meaning of paragraph (13)) of such costs as are mentioned in sub-
paragraph (b) and of such charges as are so mentioned which it is 
not both reasonable and practicable for the licensee to recover 
from the customers in question, and which accordingly is the 
amount which it wishes to recover by virtue of a special customer 
payment claim.

(3) The licensee shall, as soon as is reasonably practicable 
within 30 days (or such longer period as the Director may accept) 
of each request, furnish the Director with all such documents and 
information as the Director may in writing reasonably request 
within 65 days of receiving a special customer notice to enable 
him to determine whether in his opinion -

(a) the criteria set out in each sub-paragraph of paragraph (2) 
are met;

(b) the amount specified in the special customer notice is not 
greater than the relevant proportion of the costs referred to in 
paragraph (2)(b) and of the charges so referred to which it is 
not both reasonable and practicable for the licensee to recover 
from the customers in question;

(c) that amount exceeds the relevant proportion of any such costs 
as would have been incurred by or charges which would not have 
been recovered by an efficient gas supplier in corresponding 
circumstances, and 

(d) that amount is not greater than the amount of the additional 
receipts which would have resulted in the ability of the licensee 
to finance the carrying on of activities authorised or required 
by its licence not being prejudiced,

but this paragraph shall not require the licensee to produce any 
documents or give any information which it could not be compelled 
to produce or give in evidence in civil proceedings before the 
court.

(4) The licensee shall, as soon as is reasonably practicable, 
provide the Secretary of State with a copy of the special 
customer notice and all documents and information with which the 
Director has been furnished under paragraph (3).

(5) Where the licensee has given a special customer notice to the 
Director -

(a) if the Director, after consulting the licensee and other 
interested persons whom he considers it appropriate to consult 
and after considering any representations made by them, is not 
satisfied on the basis of the information available to him that 
the criteria set out in each sub-paragraph of paragraph (2) are 
met and, accordingly, considers that any such special customer 
payment claim as is contemplated by the special customer notice 
should not be made, he may, for the purposes of paragraph (6), 
notify the licensee to that effect;

(b) if the Director, after such consultation and consideration, 
within the period mentioned in paragraph (6)(a)(i) or, as the 
case may be, (ii), notifies the licensee that the special 
customer notice should be amended by the substitution for the 
amount specified therein of such lesser amount as either -

(i) if the information available to the Director -

A. is sufficient for him to be satisfied as to the amount which 
would more accurately reflect the relevant proportion of the 
costs and charges referred to in paragraph (2), is the amount he 
is satisfied so reflects that proportion, or

B. is not so sufficient, is the amount which such information is 
sufficient to satisfy him is not greater than the amount which 
would accurately reflect the relevant proportion of the costs and 
charges referred to in paragraph (2), or

(ii) in his opinion, on the basis of the information available to 
him, is the amount which more accurately reflects the relevant 
proportion of such additional costs as would have been incurred 
by or charges which would not have been recovered by an efficient 
gas supplier in corresponding circumstances, or

(iii) in his opinion, on the basis of the information available 
to him, is the amount which more accurately reflects the amount 
of the additional receipts which would have resulted in the 
ability of the licensee to finance the carrying on of activities 
authorised or required by its licence not being prejudiced,

the special customer notice shall be amended accordingly, and

(c) if the Secretary of State after consulting the licensee and 
other interested persons whom he considers it appropriate to 
consult and after considering any representations made by them 
notifies the licensee that no such special customer payment claim 
as is contemplated by the special customer notice should be made 
by the licensee, he may, for the purposes of paragraph (6), 
notify the licensee to that effect.

(6) The licensee may, and may only, make such a special customer 
payment claim as is contemplated by the special customer notice 
if he is not notified that such a claim should not be made -

(a) by the Director under paragraph (5)(a) -

(i) where he has requested document or information under 
paragraph (3), within the period of 35 days following the day on 
which he was furnished with, or with the last of, the documents 
or information so requested, or

(ii) where he has not so requested documents or information, 
within the period of 130 days following the day on which he 
received the special customer notice, or

(b) by the Secretary of State under paragraph (5)(c) -

(i) where the Director has requested documents or information 
under paragraph (3), within the period of 50 days following the 
day mentioned in sub-paragraph (a)(i) above, or

(ii) where the Director has not so requested documents or 
information, within the period of 145 days following the day 
mentioned in sub-paragraph (a)(ii) above.

(7) For the purposes of this and the next following paragraph -

"A" means the total number of premises to which public gas 
transporters convey gas for supply to domestic customers;

"B" means the total number of premises to which public gas 
transporters so convey gas disregarding any premises to which gas 
is conveyed by a transporter which only so conveys gas to a 
number of premises which is less than 0.25% of A;

"C" means the number of premises to which a public gas 
transporter to which a special customer payment claim is 
addressed so conveys gas;

"proportionate share", in relation to such a public gas 
transporter, means the share represented by the fraction

C
	____
B

and

"notional interest", in relation to a specified amount, means the 
simple interest on that amount over a period of 21 months 
calculated at the rate which is the average base rate of Barclays 
Bank PLC over the year ending with 30th June in which the special 
customer notice was given or, if there is no such rate, such base 
rate as the Director may designate for the purposes hereof.

(8) A special customer payment claim authorised by paragraph (6) 
shall not be addressed to a public gas transporter unless -

(a) the number of premises to which that transporter conveys gas 
for supply to domestic customers exceeds 0.25% of A, and

(b) the amount of the claim does not exceed that transporter's 
proportionate share of the amount specified in the special 
customer notice, or, as the case may be, in that notice as 
amended in accordance with paragraph (5)(b), together with 
notional interest thereon.

(9) A special customer payment claim authorised by paragraph (6) 
shall specify whether payment is to be made by quarterly or 
monthly instalments.

(10) Immediately after submitting a special customer payment 
claim to a public gas transporter, the licensee shall send copies 
of the claim to the Secretary of State and to the Director.

(11) Except in paragraph (7), in this condition, any reference 
to a year is a reference to a calendar year and, in relation to 
such premises as are mentioned in paragraph (2)(a)(i) or (ii) - 

(a) any reference to the normal proportion is a reference to the 
proportion represented by the fraction:

D
____
E

and

(b) any reference to an undue proportion is a reference to a 
proportion in excess of the normal proportion,

where -

"D" means the total number of premises at which gas is supplied 
by the licensee or other gas suppliers to such domestic customers 
as are mentioned in paragraph (2)(a)(i) or, as the case may be, 
paragraph (2) (a) (ii), and

"E" means the total number of premises at which gas is so 
supplied to domestic customers (whether or not they are such 
customers as are mentioned in paragraph (2) (a) ) .

(12) In this condition any reference to domestic customers who 
are of pensionable age, or disabled or chronically sick persons 
is, in relation to the licensee or any other gas supplier, a 
reference to persons who are so identified in such a list as is 
mentioned in standard condition 17(2)(a) which is kept by the 
licensee or, as the case may be, another gas supplier.

(13) In this condition, "relevant proportion", in relation to 
such costs and charges as are mentioned in paragraph (2)(b) 
(which, in the case of paragraph (2) (b) (ii), it is not both 
reasonable and practicable for the licensee to recover from the 
customers in question), means -

(a) if the licensee has no related persons supplying gas to 
domestic customers, that proportion thereof which is attributable 
to the licensee supplying more than a normal proportion of such 
premises as are mentioned in paragraph (2) (a) (i) or, as the 
case may be, paragraph (2) (a) (ii), or

(b) if the licensee has related persons supplying gas to domestic 
customers, and one or more of these is not supplying an undue 
proportion of such premises as are mentioned in paragraph 
(2)(a)(i) or, as the case may be, paragraph (2) (a) (ii), the 
proportion determined in accordance with sub-paragraph (a) 
adjusted in a manner calculated to avoid over-recovery by the 
group as a whole (that is to say, the licensee and all such 
related persons) and approved for the purposes hereof by the 
Director.

Condition 7:  General provisions supplementary to standard 
conditions 2 and 5 and in respect of supplier transfers

(1) If and so long as the circumstances are such as are 
mentioned in paragraph (2), the licensee shall not be required -

(2) by standard condition 2, to supply gas, continue to supply 
gas, or to offer a customer a new contract for the supply of gas, 
or

(b) by standard condition 5, to supply gas at premises.

(2) The circumstances referred to in paragraph (1) are -

(a) that the premises in question have been disconnected by the 
relevant transporter, or the supply of gas thereto has been cut 
off by a gas supplier and, by reason of paragraph 19 of Schedule 
2B to the Act, the transporter or supplier is not under any 
obligation to re-connect the premises or, as the case may be, 
resume the supply of gas to the premises;

(b) ones beyond the licensee's control which prevent it from 
complying with the requirement in question but this shall not 
relieve the licensee from the obligation to take all requisite 
steps, so far as is reasonably practicable, to secure the 
necessary supplies of gas and their conveyance to the premises of 
domestic customers or persons who might reasonably be expected to 
become such customers;

(c) ones in which compliance with the requirement in question 
would, or might, involve danger to the public and the licensee 
has taken all such steps as it was reasonable to take both to 
prevent the circumstances from occurring and to prevent them from 
having that effect;

(d) subject to standard condition 3(3)(b) and (c), and except 
where the licensee is required to supply gas by standard 
condition 5, that the licensee has requested a deposit by way of 
security for the payment of charges and the customer concerned 
has not paid this, or

(e) in relation to the obligation set out in standard condition 
2(1)(a) the discharge of which would require the implementation 
of a proposed supplier transfer in relation to any premises, that 
the gas shipper which had made arrangements in pursuance of which 
gas was then conveyed to the premises has, without breach of the 
conditions of its licence, prevented the implementation of that 
transfer

(3) The licensee shall not be required by standard condition 2 to 
supply gas to a person at premises in respect of which it is not, 
at the time the request is made, a relevant supplier if and so 
long as to do so would significantly prejudice its ability to 
continue to supply gas to domestic customers at premises where it 
already does so, but the licensee shall -

(a) take all such steps as are reasonable to avoid such a 
situation arising, and to resolve any that does arise, and

(b) inform the Director in writing, as soon as is reasonably 
practicable, of any such situation that does arise, and of when 
it has been resolved.

(4) The licensee shall not procure or permit the relevant 
shipper, in pursuance of any contract with that shipper, or 
otherwise request it, to prevent a proposed supplier transfer in 
relation to any premises at which the licensee supplies gas to a 
customer except for so long as -

(a) the customer fails to pay charges for the supply of gas to 
those premises or any premises previously owned or 
occupied by him in respect of which such charges are payable 
which -

(i) are due to the licensee and have been demanded in writing, 
and

(ii) have remained unpaid for 28 days after the making of the 
demand, or

(b) the customer is bound by the provisions of a contract with 
the licensee for the supply of gas at those premises which will 
neither expire nor, to the knowledge of the licensee, be 
terminated on or before the date of the proposed transfer.

(5) Subject to paragraph (10), paragraph (6) shall apply where -

(a) the licensee has commenced the supply of gas to a domestic 
customer at any premises at which gas was previously last 
supplied to such a customer by another gas supplier ("the first 
supplier");

(b) any person has failed to pay, within 28 days of the making of 
a demand in writing therefor, charges due to the first supplier 
in respect of the previous supply of gas at those or any other 
premises, other than charges which, before the time when the 
first supplier became aware of the proposed supplier transfer or 
the time of the implementation of that proposed transfer, 
whichever is the earlier -

(i) had become due to the first supplier;

(ii) had been demanded in writing, and

(iii) had remained unpaid for not less than 28 days after the 
making of the demand,

("excepted charges") save that if at, or within 14 days of, that 
time it reasonably appeared to the first supplier that payment 
had been made of particular charges for the supply of gas but 
they had, in fact, not been paid (for example, where a cheque 
tendered in payment was subsequently dishonoured), those charges 
shall not be excepted charges for the purposes of this sub-
paragraph; and the charges first mentioned in this sub-paragraph, 
other than excepted charges, are hereinafter referred to as "the 
charges in question";

(c) that person has been notified by the first supplier, at least 
14 days before it gives to the licensee such a notice as is 
mentioned in paragraph (6), that it proposes to assign the debt 
to the licensee and that, if he has a contract or deemed contract 
with the licensee which so provides, the licensee may be entitled 
to recover from him costs in respect of the recovery of the debt, 
and

(d) that person either is supplied with gas by the licensee at 
the premises referred to in sub-paragraph (a) or is in occupation 
of those premises on the date on which the licensee receives such 
a notice as is mentioned in paragraph (6).

(6) Where this paragraph applies, if, within 90 days of the 
licensee commencing to supply gas to the premises, the licensee 
receives written notice from the first supplier stating -

(a) the amount of the charges in question which remains unpaid;

(b) that the first supplier had used its reasonable endeavours to 
recover the amount of the charges in question which still 
remained unpaid 40 days after the demand therefor was made, and

(c) that the first supplier intends to assign the debt 
attributable to the unpaid charges to the licensee,

the licensee shall, in consideration of such assignment and 
within 60 days thereof, pay to the first supplier the amount of 
such debt less (unless those costs are recoverable as mentioned 
in paragraph (5)(c)) the licensee's reasonable administrative 
costs likely to arise in recovering the debt from the consumer, 
except that this obligation shall be limited to an amount not 
greater than one third of that of the charges -

(i) in respect of the amount of gas supplied to the premises in 
question (by the first supplier or some other gas supplier) in 
the year ending with the day on which the first supplier ceased 
to supply gas at those premises, or

(ii) if that amount is not known, in respect of the amount of gas 
reasonably expected to be supplied to the premises in question in 
the year beginning with the day on which the licensee commenced 
to supply gas thereat,

calculated, in either case, on the basis on which the first 
supplier calculated charges in the customer's case immediately 
before it ceased to supply gas to the premises.

(7) For the purposes of paragraph (6), a consumer shall not be 
regarded as having failed to pay any charges for the supply of 
gas as at a particular date to the extent that any amount 
demanded by the first supplier is genuinely in dispute and the 
dispute does not relate to the amount of gas which was shown on 
the register of the gas meter through which the supply was taken 
when the first supplier ceased to supply gas to the premises.

(8) In this condition, "proposed supplier transfer" in relation 
to any premises means the proposed implementation of arrangements 
whereunder gas would no longer fall to be supplied to premises by 
one supplier but would fall to be supplied to those premises by 
another supplier (whether or not the supplier other than the 
licensee is licensed under section 7A(1) of the Act).

(9) In paragraphs (5) and (6), references to charges for the 
supply of gas, however expressed, do not include references to 
charges made in respect of the provision of a gas meter.

(10) Where, having regard to any representations made to him, it 
appears to the Director that, in relation to any particular class 
or description of cases -

(a) the application of paragraph (6), or the possibility of its 
coming to apply, does not significantly reduce the number of 
unrecovered debts which might otherwise be expected, or

(b) the application of paragraph (6) and the recovery, or 
attempted recovery, of assigned debts involves expenditure by the 
gas suppliers concerned which is disproportionate to the 
reduction in the aggregate amount of unrecovered debts which 
might otherwise be expected,

he may provide that paragraph (6) shall, subject to paragraph 
(11), cease to have effect in relation to that class or 
description of cases: and any such provision shall be made by a 
notice which -

(i) is given and published for the purposes of this condition 
generally, and

(ii) specifies the date on which the provision is to take effect.

(11) Notwithstanding that the Director has, in pursuance of 
paragraph (10), provided that paragraph (6) should cease to have 
effect in relation to a particular class or description of cases, 
he may, having regard to any representations made to him, provide 
that paragraph (6) shall again have effect in relation thereto if 
it appears to him that the view he took as respects the matters 
mentioned in sub-paragraphs (a) and (b) of paragraph (10) is no 
longer justified; and any such provision shall be made by a 
notice which -

(a) is given and published for the purposes of this condition 
generally at least 3 months before the date specified for the 
purposes of sub-paragraph (b), and

(b) specifies the date on which the provision is to take effect 
and, accordingly, on which paragraph (6) is again to have effect 
in relation to the class or description of cases in question.

Condition 8:  Acceptance of meters and metering arrangements and 
inspection of meters

(1) Subject to paragraph (2), the licensee shall not be required 
by standard condition 2 to supply or continue to supply gas to a 
person, or to offer a new contract except on terms that, if the 
person takes his supply through a meter which belongs to him or 
is lent or hired to him otherwise than by the licensee or by the 
relevant transporter or if the meter is ordinarily to be read in 
accordance with arrangements made otherwise than by the licensee, 
the meter or the arrangements in question are acceptable to the 
licensee.

(2) From such date no earlier than 1 April 1999, as may be 
designated in writing for the purposes of this condition 
generally by the Director following such trials and consultation 
as he considers appropriate ("the metering liberalisation date" 
), the licensee shall not, in the case of a domestic customer -

(a) refuse to accept a meter the use of which does not contravene 
section 17 of the Act and which is appropriate for registering 
the quantity of gas supplied, except on the ground that -

(i) the licensee requires the supply to be taken through a 
prepayment meter and the meter is not one of that type or, if it 
is, its calibration or the arrangements for dealing with pre-
payments are not acceptable to the licensee, or

(ii) the meter does not offer the facilities requisite for the 
purposes of the contract or having regard to its terms. or

(b) refuse to accept arrangements made by the customer for the 
ordinary reading of the meter which comply with such 
requirements, designed to secure the accurate reading of the 
meter and prompt transmission of data in an appropriate form, as 
may be set out in such document or variation thereof ( "the 
metering code" ) as may be designated in writing, for the 
purposes of this  condition generally, by the Director following 
consultation with gas suppliers, gas shippers, public gas 
transporters and such other persons as the Director considers 
appropriate.

(3) This and the following paragraphs shall apply when the 
licensee receives a written request ("the request") made by a 
customer (whether a domestic or non-domestic customer) that it 
should agree that such an inspection as is referred to in 
standard condition 23(2) ("an inspection") be carried out by a 
named person chosen by the customer ("the agent") and, in such a 
case, the licensee shall -

(a) as soon as is reasonably practicable, give the relevant 
shipper a copy of the request together with any relevant 
information relating to the agent which is in the licensee's 
possession for transmission to the relevant transporter, and 

(b) refrain from agreeing to the request during the period of 15 
days beginning with the day on which it complied with 
sub-paragraph (a).

(4) The licensee shall not agree to the request -

(a) unless there are reasonable grounds for believing that

(i) the agent possesses the appropriate expertise, and

(ii) he would accurately and efficiently carry out the tasks 
specified in standard condition 23(2), or

(b) subject to paragraph (5), if the licensee has been notified 
by the relevant shipper, within the period of 8 days beginning 
with the day on which the shipper received a copy of the request, 
that the relevant transporter is of the opinion that there are 
not reasonable grounds for so believing

(5) If the licensee is notified as mentioned in paragraph (4) but 
disagrees with the relevant transporter's opinion, it shall refer 
the question whether there are reasonable grounds for believing 
that the criteria in sub-paragraph (a) of that paragraph are met 
to the Director for determination and -

(a) if, within 14 days of the question being referred to him, the 
Director notifies the licensee that he does not accept the 
transporter's opinion, that opinion shall be disregarded for the 
purposes of paragraph (4), or

(b) in any other case, the transporter's opinion shall be 
conclusive for the purposes of paragraph (4).

(6) After the metering liberalisation date, the licensee shall, 
subject to paragraphs (4) and (5), agree to the request if it has 
reasonable cause to be satisfied that the agent would comply with 
the metering code.

(7) Notwithstanding that the licensee has agreed to the request 
it may withdraw its agreement if, in relation to an inspection, 
the circumstances are such as are mentioned in standard condition 
23 (5) (a), (b) or (c).

Condition 9:  Security for payments where last resort directions 
are given

(1) The licensee shall, if licensed to supply domestic customers  
-

(a) take out and maintain a bond or other instrument approved by 
the Director as providing adequate security of payment, or

(b) make and maintain arrangements so approved, 

under which, in the event of the Director giving directions to 
one or more other gas suppliers under standard condition 5(1) as 
incorporated in those suppliers' licences to supply the 
licensee's domestic customers, there shall be payable, to such 
person as the Director may appoint ("the trustee"), such sums, or 
instalments of sums, as the trustee may (after consulting the 
Director) request, at such times as the trustee may so request, 
not exceeding, in the aggregate, a maximum sum determined in 
accordance with paragraph (7), without prejudice, however to 
paragraphs (3) and (4), and any such bond, other instrument or 
arrangements (in this condition referred to as "a security") 
shall be one which is not subject to termination or variation 
(otherwise than by way of an extension of the period for which it 
is in force or an increase in the maximum sum payable thereunder) 
without the consent of the Director; and any reference in this 
condition to the taking out of a security includes a reference to 
the making of arrangements.

(2) If the Director notifies the licensee in writing that he 
considers that a security previously approved by him for the 
purposes of paragraph (1) no longer provides adequate security of 
payment, then, with effect from the day on which the notice is 
given, or such later date as is specified in the notice, that 
security shall be treated as failing to satisfy the requirements 
of paragraph (1) and, accordingly, the licensee shall be under a 
renewed obligation thereunder to take out a security.

(3) Except in so far as the Director otherwise accepts, a 
security for the purposes of paragraph (1) shall be so expressed 
that if -

(a) in accordance with the terms thereof it would otherwise cease 
to have effect (whether at the end of a calendar year or 
otherwise), or

(b) at a time at which it is in force, it ceases, or is treated 
by paragraph (2) as ceasing, to satisfy the requirements of 
paragraph (1),

the security will subsist until the licensee takes out a new 
security which satisfies the requirements of paragraph (1) or, if 
earlier, the expiry of a period of not less than 6 months 
specified in the security beginning with the date on which it 
would otherwise have ceased to have effect or, as the case may 
be, on which it ceased, or was treated as having ceased, to 
satisfy those requirements.

(4) Where a security subsists as mentioned in paragraph (3) -

(a) its subsistence shall be disregarded for the purposes of 
paragraph (1) and, accordingly, the licensee shall be under an 
obligation thereunder to take out a security, and

(b) the sum payable under the security shall be in accordance 
with the terms thereof notwithstanding that that sum may be less 
than the maximum sum determined in accordance with paragraph (7).

(5) The trustee shall hold any sum paid to him under a security, 
together with any income derived therefrom (net of any tax he is 
required to pay on such income), upon trust (after deduction and 
retention by the trustee of his reasonable remuneration and 
expenses as determined by or under his instrument of appointment) 
-

(a) to apply the same in meeting any claim made by a gas supplier 
to which such directions as are mentioned in paragraph (1) were 
given and which satisfies the criteria in standard condition 5(9) 
and (12) as incorporated in that supplier's licence, and

(b) subject as aforesaid, for the person by whom the sum was 
paid;

and any question arising under sub-paragraph (a) as to whether 
the criteria there mentioned are satisfied shall be determined by 
the Director.

(6) If the directions were given to more than one gas supplier 
and the sum available is insufficient to meet all the claims, 
each payment shall be reduced proportionately.

(7) The maximum sum referred to in paragraph (1) shall be 
determined for each calendar year and shall be the aggregate of -

(a) the product of the number, in that year, of premises expected 
to be supplied and such sum, in respect of each premises, not 
exceeding, subject to paragraph (8), 4 pounds, as may have been 
approved by the Director -

(i) for that year, and

(ii) for the Purposes of this condition generally,

and have been so approved, for the year 1996, not later than 28 
days after the appointed day or, for any subsequent year, not 
later than 30th September in the previous year, and

(b) the product of the amount of gas expected to be supplied, 
expressed in therms or kilowatt hours, and such sum per therm or 
per kilowatt hour, as the case may be, not exceeding, subject to 
paragraph (8), 1.5p per therm or 0.0511821p per kilowatt hour, as 
may have been approved by the Director as aforesaid,

so, however, that if the Director fails to approve, for the 
purposes of sub-paragraph (a) or (b) and as therein mentioned, an 
amount for any year subsequent to 1996, this paragraph shall have 
effect as if he had approved, for that year, the amount last so 
approved by him for a previous year.

(8) In the application of paragraph (7) to the determination of 
the maximum sum for the year 1998 or any subsequent year, each of 
the maximum amounts specified in sub-paragraphs (a) and (b) 
thereof shall be adjusted in accordance with standard condition 
36 by reference to the anniversary of the appointed day in the 
previous year.

(9) The licensee shall notify the Director of its estimates of 
the number of premises expected to be supplied and of the amount 
of gas expected to be supplied in any calendar year and furnish 
him with such information as provides a reasonable justification 
of the estimates and shall do so -

(a) not later than 31st October in the previous year, or

(b) where it was not licensed to supply gas to domestic customers 
on that date and has not done so before being so licensed, as 
soon as may be after it first became so licensed after that date.

(10) In paragraphs (7) and (9) -

"premises expected to be supplied" means the average number of 
premises at which domestic customers are reasonably expected by 
the licensee to be supplied by it with gas in the year in 
question other than such excepted premises as are mentioned 
below;

"amount of gas expected to be supplied" means the amount of gas 
reasonably expected by the licensee to be supplied by it to 
domestic customers in the year in question otherwise than at such 
excepted premises as are mentioned below;

and the excepted premises referred to above are premises in 
relation to which subsection (2) of section 6 of the Gas Act 1995 
does not for the time being apply by reason only of provisions 
contained in subsections (3), (4) and (5) thereof

(11) Standard condition 1(9) shall not apply in relation to 
paragraph (7)(b) but, in relation to any time after 31st December 
1999, paragraph (7) (b) shall have effect with the omission of 
the words "in therms or", "per therm or", "as the case may be" 
and "1. 5p per therm or".

Section 10:  Methods of payment for charges for gas

(1) Except where the licensee requires that the supply of gas be 
taken through a pre-payment meter, it shall afford to a domestic 
customer using gas for domestic purposes the opportunity to pay 
charges in respect of the supply of gas in a variety of ways 
including, in particular -

(a) by cash at such places or to such persons as the licensee may 
reasonably determine;

(b) by cheque, and

(c) by postal order,

and if the licensee requests a deposit by way of security for the 
payment of charges as a condition of making a supply of gas 
available to the customer, but the customer is unwilling or 
unable to pay it, the licensee shall agree to his taking his 
supply of gas through a pre-payment meter if that is safe and 
practical.

(2) In the case of the supply of gas under a contract, otherwise 
than through a pre-payment meter, the licensee shall afford to a 
domestic customer using gas for domestic purposes a reasonable 
choice of terms as to the frequency of payments in respect of the 
supply of gas including, in particular -

(a) the making (in a reasonable manner specified by the licensee) 
of monthly payments of a predetermined amount to be applied in 
meeting charges for gas supplied as and when they become due, and

(b) one of the following, namely -

(i) the settling quarterly of a quarterly bill for gas supplied;

(ii) the settling monthly of a monthly bill for gas supplied, and

(iii) the settling quarterly of such monthly bills,

unless, having regard to the special circumstances of a 
particular case, the Director permits otherwise.

(3) The terms determined by the licensee under standard 
condition 3(1) shall include terms in respect of all the ways of 
making payments mentioned in paragraph (1), in respect of the 
frequency mentioned in paragraph (2)(a) and in respect of one of 
the frequencies mentioned in paragraph (2)(b).

(4) The terms contained in the licensee's scheme under paragraph 
8 of Schedule 2B to the Act, in its application where gas is not 
supplied in pursuance of directions given under standard 
condition 5, shall include terms in respect of all the ways of 
making payments mentioned in paragraph (1) and in respect of one 
of the frequencies mentioned in paragraph (2)(b).

Condition 11:  Termination of contracts and deemed contracts

(1) The licensee shall not enter into a contract for the supply 
of gas to any domestic customer at any premises unless -

(a) if it is a contract for a specified period, whether or not 
followed by an indefinite period, it provides that the customer 
may terminate it at any time during the specified period if -

(i) he gives 28 days' notice of termination or such lesser period 
of notice as the licensee may accept in the circumstances, and

(ii) unless the specified period exceeds 12 months and he gives 
such notice within 7 days of the date on which the contract was 
executed, he pays the licensee such termination fee, if any, as, 
subject to paragraph (6), it may reasonably require in the 
particular circumstances,

so, however, that no such notice as is mentioned in sub-paragraph 
(i) shall be considered to have been effectively given unless and 
until any such payment as is mentioned in sub-paragraph (ii) is 
made;

(b) if it is a contract for an indefinite period or for a 
specified period followed by an indefinite period, it provides 
that the customer may terminate it at any time during the 
indefinite period with effect from -

(i) the time when a new contract for the supply of gas to the 
premises, between the customer or any other person and the 
licensee or any other gas supplier, comes into effect, or

(ii) the time when the customer's premises are disconnected or 
the supply of gas thereto is cut off in consequence of the 
customer ceasing to require such a supply,

if he gives 28 days' notice, or such lesser period as the 
licensee may accept in the circumstances, of termination or 
(where that is at the time mentioned in sub-paragraph (ii)) of 
his ceasing to require a supply of gas at the premises;

(c) whether or not the contract is for a specified period, it 
provides, where the customer intends to cease, or ceases, to own 
or occupy the premises -

(i) that the customer may terminate it with effect from his 
ceasing to either own or occupy the premises, subject to his 
giving 48 hours notice of termination or such lesser period of 
notice as the licensee may accept in the circumstances, and

(ii) if the customer does not give such notice, and if it is not 
agreed between the licensee, the customer and some other person 
that the contract should continue to have effect with the 
substitution of that other person for the customer as a party 
thereto, that the contract should terminate and he should cease 
to be liable to pay for any supply of gas to the premises after 
whichever of the following first occurs, namely -

A.  the 28th day after he gives notice to the 	licensee that he 
has ceased to either own or occupy the premises,

B.  the time at which the register of the meter 	is next read 
after he has ceased to either own or occupy the premises either 
by the licensee or by a gas supplier who is, or is about to 
become, a relevant supplier, and

C.  the time from which gas is supplied to the 	premises, by 
the licensee or another gas 
supplier, in pursuance of a request made by a person other than 
the customer,

and, without prejudice as aforesaid, that the customer shall not 
be liable to pay any charges for gas supplied which are paid by 
his successor, or another person, owning or in occupation of the 
premises;

(d) whether or not the contract is for a specified period, but 
except in such cases or classes of cases as may be approved by 
the Director, if the contract provides that the charges or other 
terms are capable of variation at the discretion of the licensee, 
it provides that where the charges are raised, or other terms 
varied to the significant disadvantage of the customer -

(i) the licensee shall take reasonable steps to give, no later 
than 10 days after the variation coming into effect in his case, 
that customer a notice giving details of the variation in 
question and of the customer's right to terminate the contract:

(ii) the customer may, within 14 days of receiving the notice, 
give 21 days' notice terminating the contract, and

(iii) if the customer does so, the change shall not be effective 
for the interim period, and

(e)  whether or not the contract is for a specified period, it 
provides that it shall terminate upon a direction given to a gas 
supplier other than the licensee, in pursuance of standard 
condition 5 of that supplier's licence, coming into effect in 
relation to the premises in question.

(2) Nothing in this condition shall be construed as preventing 
the licensee from entering into a contract which contains 
provisions for its termination which are additional to, and do 
not derogate from, those required by paragraph (1).

(3) In relation to a contract which is not only in respect of the 
supply of gas but also in respect of the provision of other goods 
or services relating to the supply or use of gas -

(a) excluding the provision of a meter, of any device or 
facilities designated by the Director for the purposes hereof as 
serving the like purposes as a pre-payment meter or of pre-
payment facilities and excluding any related services or services 
in respect of the reading of a meter, and

(b) including, in particular, the provision of a service pipe or 
the provision of goods or services designed or calculated to 
promote the efficient use of energy,

paragraph (1) shall apply as if any reference therein to a right 
to terminate the contract were a reference to a right -

(i) to terminate the contract only to the extent to which it is 
not in respect of the sale of such other goods, and

(ii) which is only exercisable if the customer satisfies the 
licensee, by giving such security as the licensee may reasonably 
require or otherwise, that he will comply with the terms of the 
contract to the extent to which it is in respect of the sale of 
such other goods

and as if sub-paragraphs (c)(ii) and (e) thereof related to the 
contract only to the extent to which the contract is not in 
respect of the sale of such other goods.

(4) The terms contained in the licensee's scheme under paragraph 
8 of Schedule 2B to the Act, so far as they relate to the 
termination of a deemed contract -

(a) shall make the like provision as is required in the case of a 
contract by paragraphs (i)(c) and (e) (subject to the omission 
from sub-paragraph (1) (c) (ii) of the words "and if it is not 
agreed between the licensee, the customer and some other person 
that the contract should continue to have effect with the 
substitution of that other person for the customer as a party 
thereto"), and

(b) shall provide that where the customer intends to be supplied 
with gas at the premises in pursuance of a contract with the 
licensee, or in pursuance of a request made of another gas 
supplier, the deemed contract does not (except in the 
circumstances mentioned in paragraph (1)(e)) terminate but 
continues to have effect until the time when the licensee or, as 
the case may be, the other gas supplier begins to supply gas as 
aforesaid, at which time the deemed contract ceases to have 
effect,

but nothing in this paragraph shall be construed as preventing 
the inclusion of terms providing for the termination of a deemed 
contract which are additional to, and do not derogate from, those 
required hereby, without prejudice, however, to paragraph (5) 
where that paragraph applies.

(5) Notwithstanding anything in this condition, the terms 
contained in the licensee's scheme under paragraph 8 of Schedule 
2B to the Act, in its application where gas is supplied in 
pursuance of directions given under standard condition 5, may 
provide that, so long as those directions have effect, the 
customer may not terminate his deemed contract except -

(a) with the agreement of the licensee;

(b) on taking a supply of gas at the premises in question from 
another gas supplier, or

(c) on ceasing to take a supply of gas at the premises.

(6) The licensee may not require a termination fee as mentioned 
in paragraph (1)(a) if the specified period exceeds 12 months but 
the contract does not include, or was not accompanied by, a 
notice prominently displayed, designed to draw the customer's 
attention to the right to give notice of termination within 7 
days of the contract being executed, without payment of such a 
termination fee.

(7) Paragraph (8) shall apply where, having regard to any 
representations made to him, it appears to the Director that the 
requirements of paragraph (1) (a) are -

(a) unduly onerous for gas suppliers, or

(b) unduly restrictive as respects the choice of termination 
provisions which may be offered to potential customers, 

in relation to any particular class or description of cases 
where the specified period, whether or not followed by an 
indefinite period, does not exceed 12 months.

(8) Where this paragraph applies and after consulting the Gas 
Consumers' Council and such other persons as he considers 
appropriate, the Director may, but not before 1st January 1998, 
by such a notice as is mentioned in paragraph (9), modify 
paragraph (1)(a) so as to secure that, in relation to that class 
or description of cases, it provides that the licensee shall not 
enter into a contract for the supply of gas to any domestic 
customer at any premises unless it provides either that the 
customer may terminate it as there mentioned or that the customer 
may terminate it (without paying any termination fee) on giving, 
within 7 days of the date on which the contract was executed, 28 
days notice of termination, or such lesser period of notice as 
the licensee may accept.

(9) The notice referred to in paragraph (8) is one which -

(a) is given and published by the Director for the purposes of 
this condition generally, and

(b) specifies the modifications and the date on which they are to 
take effect.

Condition 12:  Adjustment of charges where meter has registered 
erroneously

(1) Where paragraph 4 of Schedule 2B to the Act applies (that is 
to say, where a consumer is supplied with gas through a meter at 
a rate not exceeding, subject to section 8A of the Act, 75,000 
therms a year), this condition shall apply if the meter is 
examined and found to register erroneously as mentioned in 
sub-paragraph (3) of that paragraph.

(2) Where the error found is one of over registration, the 
charges made by the licensee in respect of gas supplied through 
the meter before it was found to register erroneously shall be 
adjusted by reference to the extent to which the meter is deemed 
by the said sub-paragraph (3) to have registered erroneously; 
and, accordingly, allowance shall be made to the customer by the 
licensee.

(3) Where the error found is one of under registration, the 
licensee shall not surcharge the customer in respect of gas 
supplied through the meter before it was found to register 
erroneously otherwise than by reference to the extent to which 
the meter is deemed by the said sub-paragraph (3) to have 
registered erroneously.

Condition 13:  Undue discrimination and undue preference


( 1 ) Subject to paragraphs ( 2 ), (3), ( 7 ) and (9) to ( 14 ), 
if the licensee, taken with its related persons operating in the 
same market, is in a dominant position in a market for the supply 
of gas to customers at premises, then the licensee, in the terms 
on which it supplies or offers to supply gas to customers in that 
market -

(a) shall not show undue preference to any person or class of 
persons, and

(b) shall not exercise any undue discrimination against any 
person or class of persons,

and shall not set charges for the supply of gas to customers at 
premises -

(c) in any market or markets in which it has a dominant position, 
which are unduly onerous, or

(d) in any market or markets, which are predatory.

(2) Paragraph (1) shall not prevent the licensee from supplying 
or offering to supply gas to all of, or any class of, the 
customers in an area on terms which are reasonably necessary to 
meet established competition in relation to such customers, 
provided that the licensee -

(a) does not set terms in respect of the customers in question 
which:

(i) are predatory, or

(ii) show undue preference or unduly discriminate as between any 
such customers, and

(b) does not set terms in respect of the supply of gas at 
premises to consumers of any other class, or in any other area, 
in relation to whom the licensee has a dominant position, which 
are unduly onerous.

(3) For the purposes of paragraphs (1) and (2) -

(a) terms shall be taken to be predatory if, but only if -

(i) charges in accordance with those terms would not cover such 
avoidable costs as they ought reasonably to cover, and

(ii) the terms are made available for the purposes of, or are 
likely to have the effect of, unfairly excluding or limiting 
competition between the licensee and one or more other gas 
suppliers;

(b) terms in respect of consumers shall be taken to be unduly 
onerous if the revenue from the supply of those consumers on 
those terms -

(i) significantly exceeds costs in respect of that supply, and

(ii) exceeds such costs by significantly more than in the case of 
the supply of the generality of customers supplied with gas at 
premises by the licensee save for those in any market which is by 
virtue of paragraph (8) considered to be a separate market,

but, unless the converse is manifestly the case, terms shall not 
be taken to be unduly onerous if other gas suppliers licensed to 
supply gas to customers at the premises in question are only 
willing to do so on more onerous terms, having regard to the 
costs of market entry they have incurred or would thereby incur.

(4) In determining which customers constitute a class for the 
purposes of paragraph (2), due regard shall be had to all the 
circumstances of supply (including, in particular, volumes, load 
factors, conditions of interruptibility, location of premises 
being supplied, date, duration and terms of agreement).

(5) Any question arising -

(a) under paragraph (1), as to whether the licensee, taken with 
its related persons operating in the same market, is in a 
dominant position in a market;

(b) under paragraph (2)(b) as to whether the licensee is in a 
dominant position in relation to consumers of any class other 
than that first mentioned in paragraph (2) or in any area other 
than that so mentioned, or

(c) under paragraph (3)(a)(i), as to which avoidable costs ought 
reasonably to be covered by charges,

shall be determined by the Director, after considering any 
representations made to him.

(6) In the preceding paragraphs -

"area" means the whole of Great Britain or, in relation to the 
application of this condition to the supply of gas to domestic 
customers, either the whole of Great Britain or an area forming a 
part of Great Britain and containing no less than 100,000 
premises at which gas is supplied to such customers;

"avoidable costs" means those costs which would not be incurred 
by the licensee if it did not supply the customers in question, 
including such costs arising in the future calculated having due 
regard to the timing thereof;

"terms" means all the terms on which a supply of gas is provided 
or offered, whether as respects charges, methods of payment or 
otherwise.

(7) Nothing in this condition shall apply to the supply of gas 
under a deemed contract.

(8) For the purpose of this condition, any market for the supply 
of gas to domestic customers shall be considered to be a separate 
market from any market for the supply of gas to non-domestic 
customers.

(9) This condition shall not apply to a pricing policy of the 
licensee if such policy is treated by paragraph (10) as being in 
the public interest.

(10) A pricing policy shall be treated as being in the public 
interest if -

(a) the licensee delivers to the Director a written request 
("public interest request") made in accordance with paragraph 
(11) in relation thereto and the Director agrees in writing to 
that request; or

(b) the application of this condition to the pricing policy has 
been terminated by paragraph (12) or (13) by virtue of a notice 
given for the purposes thereof by the licensee.

(11) Any public interest request shall be in writing and be 
addressed to the Director and it shall contain a statement of the 
licensee's pricing policy and state the date ("disapplication 
date") from which the licensee wishes the Director to agree that 
this condition shall cease to have effect in relation to the 
pricing policy, but the disapplication date therein stated shall 
not be before whichever is the later of 1st April 1999 and any 
date which is less than 9 months after the date upon which the 
public interest request is delivered to the Director.

(12) If the Director has not made a reference to the Monopolies 
Commission under section 24(1) of the Act relating to the pricing 
policy specified in the public interest request before the 
beginning of the period of 6 months which will end with the 
disapplication date, the licensee may by written notice given to 
the Director claim that the application of this condition to the 
pricing policy should terminate with effect from the 
disapplication date or such later date as is specified in the 
notice, not being more than 3 months after the date thereof; and 
where such a notice is given this condition shall cease to apply 
as claimed in the notice.

(13) If the Monopolies Commission makes a report, on a reference 
made by the Director relating to the pricing policy specified in 
the public interest request, after the request and such report 
does not include a conclusion that the licensee's pricing policy 
operates, or may be expected to operate, against the public 
interest the licensee may within 30 days after the receipt of the 
report by the Director give him written notice claiming that the 
application of this condition to the pricing policy should 
terminate with effect from the disapplication date or such later 
date as is specified in the notice, not being more than 3 months 
after the date thereof; and where such a notice is given this 
condition shall cease to apply as claimed in the notice.

(14) In this condition, "pricing policy" means the principles 
governing the licensee's terms of supply to all domestic 
customers in such an area, within the meaning of paragraph (6), 
as may be specified by the licensee in its public interest 
request.

Condition 14:  Terms for supply of gas incompatible with standard 
conditions

(1) The licensee shall not enter into any arrangements for the 
supply of gas to premises on terms which are incompatible with 
its obligations under any of these standard conditions.

(2) The licensee shall not enforce or take advantage of any term 
of a contract or deemed contract for the supply of gas if -

(a) the inclusion of that term was incompatible with its 
obligations under any of these standard conditions, or

(b) the enforcement or the taking advantage of that term would be 
so incompatible.

(3) The licensee shall not take advantage of the omission of any 
term from a contract or deemed contract for the supply of gas if 
that term was required to be included in the contract or deemed 
contract in question by reason of these standard conditions.

PART III

SOCIAL OBLIGATIONS

Condition 15:  Arrangements in respect of social obligations

(1)  The licensee shall, if licensed to supply domestic customers 
-

(a) unless it has done so before being so licensed, on first 
being so licensed, submit to the Director a statement of its 
proposed arrangements for the purposes of satisfying standard 
conditions 16 to 19;

(b) where before the expiry of 30 days after submitting such a 
statement or, if later, of the licensee first being so licensed, 
the Director notifies the licensee that, in his opinion, the 
proposed arrangements are not sufficient for the purposes of 
satisfying the said standard conditions, forthwith make such 
changes in the arrangements as are requisite for those purposes 
and are specified in directions given by the Director, and

(c) on the expiry of the said period of 30 days or, if earlier, 
on being notified by the Director that he does not intend to give 
directions under sub-paragraph (b), make such arrangements in the 
terms originally proposed or, as the case may be, in those terms 
as changed in pursuance of directions given by the Director.

(2) In the case of an extension of this licence, the licensee 
shall ensure that the arrangements remain sufficient for the 
purposes of satisfying standard conditions 16 to 19 and shall 
make, subject to paragraph (3), any necessary changes.

(3) Except in the case of changes reasonably consequential upon 
an extension or a restriction of this licence which are made with 
effect from the effective date of the extension or restriction, 
the licensee shall not make any material change in the 
arrangements except with the approval of the Director.

(4) The arrangements made in pursuance of paragraph (1) (in the 
standard conditions there mentioned referred to as ''the 
arrangements") shall be set out in one or more documents 
(together with any other arrangements which the licensee 
considers it appropriate to set out therein) and the licensee 
shall, in respect of each such document or revision thereof -

(a) take such steps as reasonably appear to it appropriate to 
draw its existence and the matters which it covers to the 
attention of persons who appear to it to have a reasonable 
interest therein;

(b) on the request of any person, make a copy available to him 
free of charge, and

(c) send a copy to the Gas Consumers' Council.

(5) The licensee shall use its best endeavours to ensure, so far 
as is reasonably practicable, that it conducts itself towards its 
domestic customers (whether supplied with gas in pursuance of a 
contract or a deemed contract) in conformity with the said 
arrangements.

Condition 16: Advice on efficient use of gas

The arrangements shall provide for the provision, at the request 
of any of the licensee's domestic customers, of advice on the 
efficient use of gas given or prepared by a suitably qualified 
person and, in particular, advice as respects -

(a) the restriction of heat losses from existing buildings;

(b) the selection of gas heating systems or controls for such 
systems for use in either existing or new buildings;

(c) the operation of gas heating systems in either existing or 
new buildings which is best calculated to make an efficient use 
of gas;

(d) the efficient use of gas supplied to a domestic customer but 
used for the purposes of trade or business;

(e) organisations which may provide further advice, training or 
other services in connection with the efficient use of gas, and

(f) sources of possible financial assistance in meeting the cost 
of works calculated to improve the efficient use of gas in 
existing dwellings.

Condition 17:  Services for pensioners or disabled or chronically 
sick persons

(1) The arrangements shall provide, in relation to any domestic 
customer of the licensee who is of pensionable age ("a 
pensioner"), or is a disabled or chronically sick person, on 
request and without charge -

(a) except in the case of a customer living with another person 
who is neither a pensioner nor a disabled or chronically sick 
person nor under 18 years of age, for the examination by a person 
possessing appropriate expertise at intervals of not less than 12 
months of the safety of gas appliances and other gas fittings on 
the customer's side of the meter at his premises, other than a 
fitting for the annual inspection of which a landlord of the 
customer is responsible in pursuance of regulations made under 
the Health and Safety at Work etc. Act 1974;

(b) so far as is reasonably practicable and appropriate -

(i) for the provision of special controls or adaptors, from a 
range of such controls or adaptors, for prepayment meters owned 
by the licensee or the relevant transporter and for gas 
appliances,

(ii) for the repositioning, to meet the needs of the customer, 
occasioned by his physical condition arising from his age, 
disability or chronic sickness, of any gas meter owned by the 
licensee, and

(iii) for the transmission through the relevant shipper to the 
relevant transporter of any request by the customer for the 
relevant transporter to reposition any gas meter it owns to meet 
such needs (and for the relevant shipper being reimbursed by the 
licensee any payments made by it in respect of any reasonable 
expenses incurred by the relevant transporter in complying with 
the request);

(c) for affording to the customer special means by which he may 
confirm the identity or authority of one of the licensee's 
officers (within the meaning of section 48(1) of the Act) 
authorised for the purposes of any provision of Schedule 2B to 
the Act;

(d) for the provision of advice, given or prepared by a person 
possessing appropriate expertise, relating to the use of gas, gas 
appliances and other gas fittings;

(e) for bills in respect of the supply of gas to the customer to 
be sent to a person who, for the time being, is nominated by him 
and is willing to be sent such bills, without prejudice, however, 
to the right of the licensee to send them to the customer as well 
where that appears appropriate to the licensee, and

(f) where neither the customer nor any person living with him is 
able to read the gas meter and it is ordinarily read in 
accordance with arrangements made by the licensee, for the meter 
to be read once in each quarter and, without prejudice to 
standard condition 26(2), for the customer to be told what those 
readings are.

(2) The arrangements shall provide -

(a) for the keeping by the licensee of a list of its domestic 
customers who are pensioners or disabled or chronically sick 
persons and who request to be included in the list:

(b) for the list to contain appropriate information provided by 
the customer which facilitates the identification of his special 
needs;

(c) for notifying its domestic customers once each year that that 
list is kept and how those who are pensioners or disabled or 
chronically sick persons may apply for inclusion therein, and

(d)  for the licensee to secure that the relevant transporter is 
provided with the information in the list in an appropriate form 
and at appropriate intervals.

Condition 18: Facilities for blind and deaf persons

The arrangements shall provide for the provision, on request and 
free of charge, in relation to the licensee's domestic customers 
who, to the knowledge or reasonable belief of the licensee -

(a) are blind or partially sighted, by telephone or other 
appropriate means -

(i) of the meter readings and charges in respect of the supply of 
gas as set out in any bill, and

(ii) of the arrangements for making enquiries or complaints about 
bills or the services provided by the licensee,

(b) are deaf or partially hearing, of facilities to assist them 
(if they have the equipment enabling them to take advantage 
thereof) when making enquiries or complaints about bills or the 
services provided by the licensee.

Condition 19:  Steps to be taken where charges for gas are unpaid

(1) The arrangements shall, in relation to any of the licensee's 
domestic customers who, through misfortune or inability to budget 
to meet bills for gas supplied on credit terms, incurs 
obligations to pay for gas so supplied for use for domestic 
purposes which he finds difficulty in discharging, provide for -

(a) distinguishing, so far as is reasonably practicable, such a 
customer from others in default;

(b) providing general information as to how such a customer might 
reduce his charges in the future by the more efficient use of 
gas;

(c) in relation to a domestic customer in whose case facilities 
have been made available for sums to be deducted from any social 
security benefit payable to him (on account of his liability to 
pay charges for gas supplied to him by the licensee), for the 
acceptance of such sums in discharge of any such liability;

(d) offering an arrangement for the customer to discharge his 
debt by instalments, and making such instalment arrangements 
taking into account information available to the licensee as to 
the customer's ability to pay (including any such information 
made available by other persons or organisations ), and

(e) offering a prepayment meter where such a meter is safe and 
practical, including a prepayment meter calibrated so as to 
recover any debts in addition to the charges for gas as it is 
used, taking into account information available to the licensee 
as to the customer's ability to pay (including any such 
information made available by other persons or organisations).

(2) In the case of a domestic customer to whom paragraph (1) 
applies, the licensee shall not cut off the supply of gas at such 
a customer's premises for non-payment of charges otherwise than 
following compliance by the licensee with the arrangements 
mentioned in that paragraph.

(3) Paragraph (1)(e) shall have effect as if the references 
therein to a prepayment meter included references to any device 
or facilities, serving the like purposes as a prepayment meter, 
which are designated for the purposes hereof by the Director and 
shall have effect as respects such a device or facilities with 
such modifications (if any) as, having regard to their nature, 
are necessary and are so designated.

Condition 20:  Pensioners not to have supply of gas cut off in 
winter

(1) This condition shall apply in the case of any of the 
licensee's domestic customers who, to the knowledge or reasonable 
belief of the licensee -

(a) is of pensionable age and lives alone or with other persons 
all of whom are also of pensionable age or under 18 years of age;

(b) is supplied with gas which is used for domestic purposes, and

(c) is in default of his obligation to pay for gas so supplied 
through misfortune or inability to budget to meet bills for gas 
supplied on credit terms.

(2) Notwithstanding that sub-paragraph (3) of paragraph 7 of 
Schedule 2B to the Act (including that sub-paragraph as extended 
by sub-paragraph (4) thereof) applies by virtue of sub-paragraph 
(1) of the said paragraph 7, the licensee shall not thereunder 
cut off the supply of gas to such a customer's premises during 
any winter period, that is to say, a period beginning with 1st 
October in any year and ending with 31st March in the next 
following year.

Condition 21:  Record of and report on performance

(1) The licensee shall keep a record of its general operation of 
the arrangements mentioned in standard conditions 16 to 19 and 
compliance with standard conditions 19(2) and 20 and, if the 
Director so directs in writing, of its operation of standard 
conditions 19(2) and 20 in particular cases specified, or of a 
description specified, by him. The licensee shall also keep a 
statistical record of its performance in relation to the 
provision of gas supply services to domestic customers and 
potential domestic customers, including services related to -

(a) the giving of, and the continuation of the giving of, 
supplies of gas;

(b) the ascertainment of amounts of gas supplied and the recovery 
of gas charges, and

(c) the making of visits to customers' premises and the response 
made to enquiries.

(2) As soon as is reasonably practicable after the end of each 
calendar year, the licensee shall submit to the Director and to 
the Gas consumers' Council a report dealing with the matters 
mentioned in paragraph (1) in relation to that year and shall -

(a) publish the report so submitted in such manner as will in the 
reasonable opinion of the licensee secure adequate publicity for 
it, and

(b) send a copy of it free of charge to any person requesting 
one,

except that, in performing its obligations under sub-paragraphs 
(a) and (b), the licensee shall exclude from the report such 
information as appears to it to be necessary or expedient to 
ensure that, save where they consent, individual customers 
referred to therein cannot readily be identified.

(3) The report shall be presented, so far as is reasonably 
practicable, in a standard format designated by the Director for 
the purposes of this standard condition generally.

PART IV

MISCELLANEOUS

Condition 22:  Supply and connection of gas meters

(1) The licensee shall, if so requested by one of its domestic 
customers or a person who has agreed to become such a customer, 
arrange for the provision to that customer of a meter owned by it 
or the relevant transporter which is of an appropriate type for 
registering the quantity of gas supplied to him by -

(a) arranging with the relevant transporter for the meter owned 
by it and installed in the premises to remain in place;.

(b) arranging with the owner of the meter installed in the 
premises to purchase or otherwise acquire that meter and for it 
to remain in place;

(c) arranging for the installation of a meter where there is no 
meter in place, or the meter in place is inappropriate or cannot 
be purchased or acquired on reasonable terms, or

(d) making such other arrangements for the provision of a meter 
as may be agreed between the licensee and the customer.

(2) Where the licensee is obliged under paragraph (1) to arrange 
for the provision of a meter to a customer, it shall not require, 
as a condition of making such an arrangement as is mentioned in 
subparagraph (1)(a), (b) or (c), that the customer takes the 
meter otherwise than on hire or loan.

(3) Where a customer of the licensee hands over to it a meter 
which is owned by the relevant transporter, the licensee shall so 
inform that transporter, through the relevant shipper, and hold 
the meter to the transporter's order for a period of one month in 
the condition in which it was received and with the index 
unaltered.

(4) Where a domestic customer terminates a contract or deemed 
contract with the licensee for the supply of gas, the licensee 
shall not -

(a) exercise any right to recover any meter owned by the licensee 
at, or by reason of, the termination of such contract, or

(b) authorise any of its officers to enter the customer's 
premises for the purpose of removing any such meter (whether 
under paragraph 26 of Schedule 2B to the Act or otherwise),

if another supplier undertakes prior to the date of such 
termination to make an arrangement with the licensee of the type 
contemplated in paragraph (1)(b) on terms that the licensee 
receives such compensation (if any) as may be appropriate having 
regard to the value of the meter.

(5) Where -

(a) in pursuance of arrangements made by the licensee, any meter 
is connected with a service pipe through which gas is conveyed to 
premises in relation to which the licensee is, or is about to 
become, a relevant supplier and the person making the connection 
is not an approved person, or

(b) the licensee receives -

(i) such a notice of a proposed connection as is mentioned in 
sub-paragraph (1) of paragraph 12 of Schedule 2B to the Act, 
whether or not it is followed by such information as is mentioned 
in sub-paragraph (3) of that paragraph, or

(ii) a copy of such a notice or of any such information which has 
been received by the relevant transporter, and it is not stated 
in the notice or information that the connection will be, or has 
been, made by an approved person.

the licensee shall use its reasonable endeavours to secure that, 
within the required period mentioned in paragraph (6)(b), an 
approved person inspects the connection and, if he finds it 
unsatisfactory, carries out any appropriate remedial work.

(6) For the purposes of paragraph ( 5 ) -

(a) "approved person" means -

(i) a person approved by the Director as possessing expertise 
satisfactorily to connect a meter and so ensure that the gas 
supplied through it is duly registered ("the requisite 
expertise") or a person of a class or description of persons so 
approved;

(ii) an undertaking approved by the Director as having staff 
possessing the requisite expertise, or

(iii) without prejudice as aforesaid, until the expiry of the 
period of 9 months beginning with the appointed day, an officer 
of the relevant transporter possessing the requisite expertise or 
the relevant transporter,

and, for the purposes of this definition, "approved by the 
Director" means approved by him for the purposes of this 
condition generally and "staff" includes officers, servants and 
agents, and

(b) the reference to the required period is a reference -

(i) in relation to premises of a domestic customer, the period of 
90 days, and

(ii) in relation to premises of a non-domestic customer, the 
period of 30 days,

beginning with the day following that on which the connection was 
made as mentioned in paragraph (5)(a) or, as the case  may be, 
with the day following that specified in the notice or 
information (or copy thereof) mentioned in paragraph (5)(b) as 
that on which the connection would be, or was, made.

Condition 23:  Inspection and testing of meters

(1) The licensee shall use all reasonable endeavours (including, 
in particular, the seeking of a warrant under the Rights of Entry 
(Gas and Electricity Boards) Act 1954(f)  where it is necessary to 
do so) to ensure that at intervals of not more than 2 years 
(which shall be deemed to expire on a date specified in a notice 
given by the relevant transporter which has been transmitted to 
the licensee by the relevant shipper, no less than 4 months in 
advance, in any case where a gas supplier has supplied premises 
for less than 2 years) an inspection of the meter and associated 
installation shall take place in accordance with paragraph (2).

(2) An inspection under paragraph (1) shall be carried out by a 
person possessing appropriate expertise and shall include the 
following tasks -

(a) reading the meter;

(b) inspecting the meter and associated installation for evidence 
of tampering;

(c) inspecting the meter and that installation for any evidence 
that the meter has not continuously been in position for the 
purpose of registering the quantity of gas supplied;

(d) arranging for information in respect of any gas leakage 
identified in the vicinity of the meter to be passed on in 
accordance with paragraph 20(5) of Schedule 2B to the Act as if 
the licensee had been informed thereof:

(e) inspecting the meter for any evidence of deterioration which 
might affect its due functioning or safety, and

(f) where necessary and subject to the consent of the owner of 
the meter, changing any batteries in the meter.

(3) Nothing in paragraph (2)(a) to (e) shall require the 
disassembling of any part of the meter.

(4) Where, in compliance with paragraphs (3) to (6) of standard 
condition 8, the licensee has agreed (and has not withdrawn its 
agreement in pursuance of paragraph (7) of that condition) that a 
named person chosen by the customer (" the agent") should carry 
out such an inspection as is referred to in paragraph (2), has 
been informed that the agent has carried out the inspection, and 
has received a report from the agent in respect of the casks 
mentioned in paragraph (2), both in respect of what was done and 
what was found, then, subject to paragraph (5), that shall be a 
sufficient compliance with paragraph (1). 

(5) Where the licensee has so agreed, (and has not so withdrawn 
its agreement) that, of itself, shall not constitute a sufficient 
compliance with paragraph (1) if -

(a) the licensee has not been informed that the inspection has 
been carried out by the time by which it fell to be carried out 
or, where the licensee has expressly requested the agent to carry 
it out, within 28 days of that request;

(b) the licensee has not received from the agent such a report as 
is mentioned in paragraph (4) within a reasonable time after the 
inspection was carried out or, where the licensee has made such 
an express request as is mentioned in sub-paragraph (a), within 
35 days of that request, or

(c) the licensee has reason to doubt the accuracy either of any 
information it has received that the inspection has been carried 
out or of any such report as is mentioned in paragraph (4),

but in any such circumstances paragraph (1) shall have effect as 
if the interval there mentioned expired 2 months later than the 
date on which it in fact expired (or was deemed thereby to have 
expired) and, accordingly, it shall be a sufficient compliance 
with paragraph (1) if, before the expiry of the extended 
interval, either the relevant circumstances are remedied or the 
licensee ensures that the requisite inspection takes place in 
accordance with paragraph (2).

(6) The licensee shall comply with a request made by any of its 
customers for the removal of the meter by which the quantity of 
gas supplied to that customer is registered for the purpose of 
its being examined by a meter examiner in accordance with section 
17 of the Act.

(7) Where, for a continuous period beginning with the appointed 
day, the relevant transporter does not record separately -

(a) inspections of meters and associated installations in 
accordance with paragraph (2), and

(b) meter readings made by authorised officers of the licensee,

then, without prejudice to its duty under paragraph (1), if that 
transporter has secured that the licensee be so informed, it 
shall, for that period, ensure that such an inspection of a meter 
and associated installation takes place on each occasion on which 
the meter is read by one of its authorised officers.

Condition 24:  Arrangements in respect of powers of entry

(1) The licensee shall, if licensed to supply domestic customers 
-

(a) unless it has done so before being so licensed, on first 
being so licensed, submit to the Director a statement of its 
proposed arrangements in respect of the steps mentioned in 
standard condition 25(1);

(b) where before the expiry of 30 days after submitting such a 
statement or if later, of the licensee first being so licensed, 
the Director notifies the licensee that, in his opinion, the 
proposed arrangements are not sufficient for the purposes of 
satisfying that standard condition, forthwith make such changes 
in the arrangements as are requisite for those purposes and are 
specified in directions given by the Director, and

(c) on the expiry of the said period of 30 days or, if earlier on 
being notified by the Director that he does not intend to give 
directions under sub-paragraph (b), make such arrangements in the 
term originally proposed or, as the case may be, in those terms 
as changed in pursuance of directions given by the Director.

(2) In the case of an extension of this licence, the licensee 
shall ensure that the arrangements remain sufficient for the 
purposes of satisfying standard condition 25, and shall make, 
subject to paragraph (3), any necessary changes.

(3) Except in the case of changes reasonably consequential upon 
an extension or a restriction of this licence which are made with 
effect from the effective date of the extension or restriction, 
the licensee shall not make any material change in the 
arrangements except with the approval of the Director.

(4) The licensee shall use its best endeavours to ensure, so far 
as is reasonably practicable, that it conducts itself in 
conformity with the arrangements towards its customers who are 
either -

(a)  domestic customers, or

(b) non-domestic customers who, to its knowledge or reasonable 
belief, use the gas supplied to them for domestic purposes.

(5) Where the licensee has not made arrangements in pursuance of 
paragraph (1), it shall, as respects such of its non-domestic 
customers as are mentioned in paragraph (4)(b), take all such 
steps as are mentioned in standard condition 25(1) as are 
applicable.

Condition 25:  Authorisation of officers

(1) The arrangements referred to in standard condition 24 shall 
provide for the taking of all reasonable steps -

(a) for the purpose of securing compliance with paragraph 28(1) 
of Schedule 2B to the Act;

(b) for the purpose of securing that any officer authorised for 
the purpose of any provision or Schedule 2B to the Act possesses 
appropriate expertise to perform the particular tasks that he 
will be required to undertake under the provision in question;

(c) for securing that a member of the public may readily confirm 
the identity or authority of an officer so authorised;

(d) for securing that identity cards, uniforms, liveried vehicle 
and other things carried, worn or used by an officer 80 
authorised which confirm or suggest that he may be such an 
officer are not misused, and

(e) for accusing that all officers authorised by the licensee 
comply with the provisions of the Right of Entry (Gas and 
Electricity Boards) Act 1954.

(2) If, in respect of any premises any officer authorised for 
the purpose of any provision of Schedule 28 to the Act is an 
officer or servant of an agent of the licensee, or if the 
licensee is notified by the relevant transporters or shipper that 
any officer so authorised by that transporter or shipper is an 
officer or servant of an agent thereof, the licensee shall take 
reasonable steps to inform and keep informed each of its 
customers in respect of those premises, naming the agent in 
question, and shall give that information in a verifiable and 
authoritative manner.

(3) It shall be a sufficient compliance with paragraph (2) for 
the information to be given on or with a bill in respect of the 
supply of gas to the premises in question which is rendered 
within 4 months of the appointment of an agent being made or 
varied by the licensee or, as the case may be, within 4 months of 
the licensee being notified of such as: appointment or variation 
by the relevant transporter or shipper.

Condition 26:  Information to be given to customers etc.

(1) The licensee shall keep each of its customers informed -

(a) that an escape, or suspected escape, of gas should be 
reported immediately, and

(b)  of a telephone number which should be used for that purpose.

(2)  The licensee shall keep each of its customers informed as to 
the quantity or amount of gas shown in its records -

(a)  as having been registered by the meter through which the 
customer is supplied with gas, or

(b)  as having been estimated to have been supplied to the 
customer where a bill based on such an estimate has been rendered 
to him.

(3) The licensee shall keep each of its customers informed of 
the name and address of the relevant transporter and, if that 
transporter has assigned reference numbers or codes for 
identifying particular points at which gas conveyed to premises 
is metered and the relevant shipper has informed the licensee of 
the number or code in relation to a point where the licensee is 
(or is about to be) a relevant supplier in relation to the 
premises, the licensee shall inform the customer concerned of the 
number or code.

(4) The licensee shall keep each of its domestic customers 
informed -

(a) that the Gas Consumers' Council can provide assistance in 
resolving complaints which the licensee has not resolved to the 
customer's satisfaction, and

(b) how the relevant office of the Gas Consumers' Council can be 
contacted,

by giving that information on, or with, each bill rendered in 
respect of the supply of gas to such customers.

(5) It shall be a sufficient compliance with paragraph (1), (2) 
or (3) if the information required by the paragraph in question 
is given on or with each bill which is rendered in respect of the 
supply of gas to a customer.

(6) The licensee shall inform the customer of the most recent 
meter reading or of the telephone number referred to in paragraph 
(1)(b) if so requested.

(7) Where a bill rendered in respect of the supply of gas to a 
customer is expressed in terms of the amount of gas supplied, the 
licensee shall inform the customer in writing -

(a) of the basis on which that amount is calculated from the 
quantity of gas supplied, and

(b)  if in making that calculation adjustments are made in 
respect of a temperature and pressure conversion factor within 
the meaning of regulations from time to time in force under 
section 12 of the Act, particulars of any such adjustments,

by giving such information on or with each such bill.

(8) Where a domestic customer takes a supply of gas at any 
premises through a pre-payment meter, the licensee shall keep the 
occupier of those premises informed that, if there is a loss of 
supply of gas which he believes may result from difficulties in 
operating, the malfunctioning of, or a defect in, the meter and 
there is no escape, or suspected escape, of gas -

(a)  he should notify a person whose name and address is given, 
and

(b)  he may, for that purpose, use a telephone number which is 
given.

(9)  Paragraph (10) shall have effect if, and only if, for the 
purposes of this condition generally, the Director 

(a) has designated a code of good practice for undertakings 
(including gas suppliers, gas shippers and public gas 
transporters) the business of which includes the reading of gas 
meters and for persons engaged in reading gas meters ("the 
code"), and

(b) has directed that the said paragraph should have
effect.

(10) The licensee shall, at the request of any person inform him 
-

(a) whether it has notified the Director that it intends to 
comply with the code and to require any undertaking which acts as 
its agent in connection with the reading of gas meters ("a 
relevant undertaking") so to comply;

(b) if it has so notified the Director and he has made any 
comments in respect of the licensee's, or a relevant 
undertaking's, compliance with the code, of the nature of those 
comments;

(c)  whether all its officers engaged in the reading of gas 
meters at its customers' premises (other than those who are 
officers or servants of a relevant undertaking) are instructed to 
comply with the code, and

(d)  whether it has required any relevant undertaking to so 
instruct all the officers and servants of the undertaking so 
engaged.

Condition 27:  Exercise of powers of entry

(1)  As respects the powers of entry conferred on its authorised 
officers by Schedule 2B to the Act, the licensee shall use its 
reasonable endeavours to avoid undue disturbance to owners or 
occupiers of premises as a result of visits being made to their 
premises by authorised officer of different licence holders 
exercising powers of entry for like purposes.

(2) Subject to paragraph (3), in relation to the premises of a 
domestic customer, the licensee shall not, in connection with the 
supply of gas to the premises, by contract acquire for any of its 
officers powers of entry enjoyed by the authorised officers under 
Schedule 2B to the Act or act in any manner calculated to suggest 
that any of its officers have such powers.

(3)  Paragraph (2) shall not apply -

(a)  in the case of a contract which relates exclusively, or to 
the extent to which it relates, to the provision of a gas meter 
or other gas fitting of which the licensee remains the owner, or

(b)  so far as the Director so consents in cases, or 
descriptions of cases, specified by him.

(4)  Any question arising under paragraph (2) as to whether a 
power of entry is in connection with the supply of gas shall be 
determined by the Director.

Condition 28:  Exchange of information between licenses and 
relevant transporter or shipper

(1) Subject to paragraphs (3) to (5), the licensee shall provide 
information reasonably requested by a relevant transporter either 
-

(a)  for the purpose of enabling the transporter to fulfil its 
licence obligations to draw up plans for the safe operation, 
development or maintenance of its pipe-line system, or

(b)  for the purpose of preventing or detecting the taking of a 
supply of gas where -

(i) paragraph ( 1 ) of condition 24 of the Standard Conditions of 
Public Gas Transporters' Licences (gas illegally taken), as 
incorporated in the transporter's licence, would apply or 
applies, or

(ii) paragraph (4) of that condition would apply or applies by 
virtue of paragraph (3) thereof.

(2) 	Subject to paragraphs (3) and (4), the licenses shall also 
notify the relevant transporter, in such form and manner as it 
may reasonably require, of the particulars (including, so far as 
is reasonably practicable, a reasonable estimate of the volume 
or, failing that, of the amount of gas taken) of any case of 
which the licensee has become aware of the actual or suspected 
taking of a supply of gas as mentioned in paragraph (1) (b) where 
the gas had been conveyed to premises to which the licensee 
supplies gas or was in the course of being so conveyed through a 
service pipe by which any such premises are connected to a 
relevant main.

(3)  The licensee shall be entitled to refuse to provide an item 
of information on the grounds that its disclosure would seriously 
and prejudicially affect the commercial interests of the licensee 
unless and until the Director, by notice in writing given to the 
licensee, directs it to provide that item of information on the 
ground that the provision thereof is necessary for any of the 
purposes mentioned in paragraph (1).

(4) This condition shall not require the licensee to produce any 
documents or give any information which it could not be compelled 
to produce or to give in evidence in civil proceeding before the 
court.

(5) Paragraph (1) (a) shall not apply in respect of any public 
gas transporter which has not established, whether in pursuance 
of a licence condition or otherwise, effective arrangements 
designed to secure that information provided in pursuance thereof 
is not communicated, directly or indirectly, to another gas 
supplier or any gas shipper.

(6) Where the licensee receives, in connection with a proposed 
connection or disconnection of a meter, such a notice as is 
mentioned in sub-paragraph (1) of paragraph 12 of Schedule 2B to 
the Act or receives information in pursuance of sub-paragraph (3) 
of that paragraph, it shall promptly give the relevant shipper a 
copy thereof and furnish it with any further information relating 
to the meter which is requested by that shipper and which the 
licensee either has or may readily obtain.

(7) Where the licensee intends to connect, or has connected any 
meter with a service pipe through which gas is conveyed to any 
premises by a public gas transporter or intends to disconnect, or 
has disconnected any meter from any such pipe, it shall give to 
the relevant shipper the like notice and information as would, by 
paragraph 12 of Schedule 2B to the Act, have been required to be 
given to the licensee or the relevant transporter had the 
connection or disconnection been by a person other than the 
licensee, and the licensee shall give such notice and information 
at the like times.

(8) The licensee shall promptly furnish the relevant shipper 
with such information as it may from time to time obtain as to 
the quantities or amounts of gas conveyed to premises to which it 
supplies gas.

(9) The licensee shall promptly furnish the relevant shipper, 
for transmission to the relevant transporter, with particulars of 
each inspection of a gas meter in pursuance of standard condition 
23, including the date on which the inspection was carried out, 
the reading of the register of the meter and what, if anything, 
was found.

(10) Where, in pursuance of a request for the purposes of 
paragraph (3) of condition 17 of the standard Conditions of 
Public Gas Transporters' Licences, as incorporated in a public 
gas transporter's licence, that transporter has, by virtue of 
sub-paragraph (b) or (c) of that paragraph, furnished the 
licensee with a copy of a part of, or information contained in, 
the record of meter point numbers kept by the transporter in 
pursuance of the said condition 17, the licensee shall restrict 
the use or disclosure it makes of the copy or information 
furnished in such manner, and to such extent, as may be 
designated for the purposes of this condition generally by the 
Director so, however, that such designation may make different 
provision in relation to copies of part of the record or 
information furnished by different public gas transporters.

Condition 29:  Provision of information to Gas Consumers' Council

(1) The licensee shall, within 3 months after becoming 
authorised by its licence to supply gas to domestic customers, 
give to the Gas Consumers' Council details of its arrangement for 
liaising with the Council in relation to the handling of cases in 
which the Council is exercising the functions assigned to it by 
section 32 of the Act and shall give the Council details of any 
significant change in any such arrangements, not later than the 
time of the implementation of the change.

(2) The licensee shall furnish to the Gas Consumers' Council, at 
such times as the Council may reasonably require, such 
information on matters which are the subject of a representation 
to it or are referred to it by the Director under section 32(3) 
of the Act as the Council may reasonably request for the purposes 
of exercising the functions assigned to it by section 32 of the 
Act.

(3) This condition shall not require the licensee to produce any 
documents or give any information which it could not be compelled 
to produce or give in evidence in civil proceedings before the 
court.

Condition 30:  Provision of information to the Director

(1) Subject to paragraphs (2) and (3), the licensee shall 
furnish to the Director, in such manner and at such manner as the 
Director may reasonably require, such information as he may 
reasonably require or as may be necessary for the purpose of 
performing the functions assigned to him by or under the Act.

(2) This condition shall not apply in respect of any function of 
the Director under section 23 (1) (a), 34 or 35 of the Act, but 
the licensee shall, if requested by the Director, give reasoned 
comments on the accuracy (so far as it relates to its activities 
as a gas supplier) of any information or advice which the 
Director proposes to publish in pursuance of section 35 of the 
Act.

(3) This condition shall not require the licensee to produce any 
documents or give any information which it could not be compelled 
to produce or give in evidence in civil proceedings before the 
court.

(4) Where, under any other condition of this licence, the 
licensee is or can be required to provide information to the 
Director, there shall be a presumption that the provision of that 
information in accordance with that condition is sufficient for 
the relevant purposes of that condition, but that presumption 
shall be rebutted, and shall not limit the right of the Director 
to call for further information under paragraph (1), if he states 
in writing that in his opinion such information is, or is likely 
to be, necessary to enable him to exercise functions under the 
condition in question.

Condition 31:  Obligations as respects emergencies etc. and 
security of supply

(1) Paragraph (2) of this condition shall apply -

(a) in the case of an escape, or suspected escape, of gas, or

(b) in the case of a pipe-line system emergency, that is to say, 
where the circumstances are such that, in the opinion of the 
relevant transporter -

(i) the safety of its pipe-line system is significantly at risk;

(ii) the safe conveyance of gas by that system is significantly 
at risk, or

(iii) gas conveyed by that system is at such a pressure, or of 
such a quality, as to constitute, when supplied to premises, a 
danger to life or property, 

and that opinion is not manifestly unreasonable.

(2) Where this paragraph applies, the licensee shall use its best 
endeavours to comply with all requests made by the relevant 
transporter (save any which are manifestly unreasonable) for the 
purpose of, as may be appropriate -

(a) averting or reducing danger to life or property or

(b) securing the safety of the pipe-line system or the safe 
conveyance of gas thereby or reducing the risk thereto.

(3) The licensee shall include in its contracts for the supply of 
gas to non-domestic customers, a term to the effect that, for the 
duration of a pipe-line system emergency, within the meaning of 
paragraph (1) (b) -

(a) the licensee is entitled at the request of the relevant 
transporter or shipper to discontinue the supply of gas to the 
premises, and

(b) the customer shall use his best endeavours to refrain from 
using gas immediately upon being told by the licensee or relevant 
transporter that he should do so.

(4) The licensee shall include in its contracts for the supply 
of gas to customers, whether or not domestic customers, a term to 
the effect that, if it is given a direction under section 2(1)(b) 
of the Energy Act 1976(g) prohibiting or restricting the supply of 
gas to specified persons, then, for so long as the direction is 
in force and so far as is necessary or expedient for the purposes 
of, or in connection with, the direction -

(a) the licensee is entitled to discontinue or restrict the 
supply of gas to the customer, and

(b) the customer shall refrain from using, or restrict his use, 
of gas, on being told by the licensee that he should do so.

(5) The terms contained in the licensee's scheme under paragraph 
3 of Schedule 2B to the Act -

(a) in its application in relation to the supply of gas to 
non-domestic customers, shall include such a term as is mentioned 
in paragraph (3), and

(b) in its application in relation to the supply of gas to any 
customer, whether or not a domestic customer, shall include such 
a term as is mentioned in paragraph (4).

(6) Where the licensee has a contract with the relevant shipper 
which wan executed before 2nd March 1995 and it is empowered 
thereby to book capacity for the conveyance of gas by the 
relevant transporter's pipe-line system, it shall exercise that 
power, except in so far as the Director consents otherwise, in 
conformity with security standards.

(7) In paragraph (6), "security standards", in relation to the 
booking of capacity for the conveyance of gas by the relevant 
transporter, means, subject to paragraph (11), booking of 
capacity at a level appropriate to enable there to be met a rate 
of off-takes by the relevant shipper at premises supplied with 
gas by the licensee from that transporter's pipe-line system 
which would equal the peak aggregate daily demand for gas by the 
licensee's. current
customers -

(a) which might reasonably be expected if the licensee 
interrupted, or reduced, the supply of gas to each customer to 
the extent that (otherwise than in the circumstances mentioned in 
paragraph (3) or (4)) it was entitled so to do under its contract 
or deemed contract with that customer, and

(b) which, having regard to historical weather data derived from 
at least the previous 50 years and other relevant factors, is 
likely to be exceeded (whether on one or more days) only in 1 
year out of 20 years.

(8) Where the relevant shipper pays over to the licensee a sum 
received by it from the relevant transporter by reason of the 
failure of the transporter to convey gas to a domestic customer's 
premises, the licensee shall -

(a) set-off that sum against any charges in respect of the supply 
of gas to those premises which are or may become due to be paid 
by the customer, or

(b) use its reasonable endeavours to pay that sum (go far as not 
set off against charges) to the customer.

(9) Unless, by means of its contracts with gas shippers or 
otherwise, the licensee secures that all gas conveyed by public 
gas transporters for supply to its domestic customers is conveyed 
in conformity with those transporters' network codes, it shall 
take such steps as are necessary or expedient to secure that the 
domestic supply security standards are satisfied as respects the 
availability of gas to its domestic customers.

(10) In paragraph (9), "the domestic supply security standards" 
means, subject to paragraph (11) -

(a) the availability of a supply of gas which would equal the 
peak aggregate daily demand for gas by the licensee's current 
domestic customers which, having regard to historical weather 
data derived from at least the previous 50 years and other 
relevant factors, is likely to be exceeded (whether on one or 
more days) only in 1 year out of 20 years, and

(b) the availability of supplies of gas -

(i) over a year which would equal the aggregate annual demand for 
gas by those customers, and

(ii) over the first 6 months of a year which would equal the 
aggregate demand for gas by those customers during such a 6 month 
period,

which, in each case, having regard to such data as aforesaid and 
other relevant factors, is likely to be exceeded only in 1 year 
out of 50 years.

(11) For the purposes of paragraphs (7) and (10), "daily" means 
over a period beginning at 6 a.m. on one day and ending 
immediately before 6 a.m. on the following day and "year" means a 
period of 12 months beginning with 1st October; and if, after 
consultation with all gas suppliers, gas shippers and public gas 
transporters, with the Health and Safety Executive and with the 
Gas Consumers' Council, the Director is satisfied that the 
relevant security standard would be adequate if paragraph (7) or 
(11) were modified -

(a)  by the substitution, in paragraph (7)(b) or paragraph 
(10)(a) or (b), of a reference to data derived from a period of 
less than the 50 previous years;

(b) by the substitution, in paragraph (7)(b) or paragraph (10) 
(a) of some higher probability for the probability of 1 year in 
20 years, or

(c) by the substitution, in paragraph (10) (b), of some higher 
probability of the probability of 1 year in 50
years,

the Director may, subject to paragraph (12). make such 
modifications by a notice which -

(i) is given and published by the Director for the purposes of 
this condition generally, and

(ii) specifies the modifications and the date on which they are 
to take effect.

(12) Paragraphs (7)(b) and (10) (a) shall only be modified if, at 
the same time, the Director makes similar modifications to -

(a) paragraph (2) (b) of condition 13 of the Standard Conditions 
of Public Gas Transporters' Licences, and

(b)  sub-paragraph (b) of the definition of "security standards" 
in condition 1(1) of the Standard Conditions of Gas Shippers' 
Licences.

Condition 23:  Payments by licensee to Director

(1) Where the Director has given the licensee notice of the 
amount in respect of a particular relevant year, determined in 
accordance with paragraph (2), the licensee shall, within 30 days 
of being given that notice and in respect of that relevant year, 
pay that amount to the Director.

(2) The amount payable under paragraph (1) in respect of a 
relevant year shall be the minimum fee or, if the licensee was 
supplying gas to more than 10,000 premises on the accounting day, 
the aggregate of -

(a) the minimum fee;

(b) an additional amount calculated by -

(i) taking the relevant percentage of the total recoverable 
costs;

(ii) adding to that amount any amount determined by the Director 
(in consultation with the Monopolies Commission), for the 
purposes of this condition generally, as having been incurred by 
the Commission in the preceding relevant year in connection with 
references made to it under section 24 of the Act relating to a 
licence or licences granted under section 7A(1) of the Act;

(iii) subtracting from the amount calculated as aforesaid an 
amount equal to the minimum fee multiplied by the number of 
persons who, on the accounting day, held relevant supply 
licences;

(iv) multiplying the amount calculated as aforesaid by the factor 
-

A
____
B,

where -

"A" means the number of premises in excess of 10,000 to which the 
licensee supplied gas on the accounting day;

"B" means the aggregate number of premises supplied with gas on 
the accounting day by persons who held relevant supply licences 
on that day disregarding, in the case of each such person, the 
first 10,000 premises so supplied.

(3) The licensee shall as soon as is practicable after an 
accounting day furnish the Director with such information as to 
the number of premises to which the licensee was supplying gas on 
that day as the Director may from time to time require.

(4) In this condition -

"the accounting day", in relation to a relevant year, means 1st 
April in that year;

"minimum fee", in relation to a relevant year, means, in the case 
of the relevant year beginning with 1st April 1996, 800 pounds 
sterling or, in the case of any subsequent relevant year, that 
sum adjusted in accordance with standard condition 36 except that 
any fraction of 1 pounds sterling in the sum as so adjusted shall 
be disregarded;

"relevant percentage" means 50% or, if the Director is of the 
opinion that that percentage does not fairly represent the 
proportion of the total recoverable costs which such costs 
incurred in connection with the supply or use of gas or related 
matters constitute, such other percentage as he may from time to 
time designate, for the purposes of this condition generally, as 
more fairly representing that proportion;

"relevant supply licence" means a licence granted under section 
7A(1) of the Act which incorporates this standard condition, and 
any reference to a person who holds a relevant supply licence 
includes a reference to the licensee;

"relevant year" means a year beginning with 1st April in 1996 or 
any subsequent year at the beginning of which the licensee holds 
a licence under section 7A(1) of the Act;

"total recoverable costs" means the lesser of -

(a) the aggregate of -

(i) the amount estimated by the Director, for the purposes of 
this condition generally, as likely to be the costs incurred by 
him during the relevant year in the exercise of the functions 
assigned to him by or under the Act otherwise than by paragraph 6 
of Schedule 2 to the Act;

(ii) the amount so estimated by the Director after consulting the 
Secretary of State as likely to be the costs incurred by the Gas 
Consumers' Council during the relevant year in the exercise of 
its functions under the Act, and

(iii) except in the case of the relevant year beginning with 1st 
April 1996, the amount of the difference, if any, between the 
costs mentioned in sub-paragraph (i) or (ii) which the Director 
considers were actually incurred during the previous relevant 
year and the estimate of the costs in question made by him for 
the purposes of this condition, where the latter exceeds the 
former the amount of the difference being treated as a negative 
amount, and

(b) in the case of the relevant year beginning with 1st April 
1996, 14 million pounds sterling or, in the case of any 
subsequent relevant year, that sum adjusted in accordance with 
standard condition 36 except that any fraction of 1,000 pounds 
sterling in the sum as so adjusted shall be disregarded.

Condition 33:  Assignment of licence

For the purposes of section 8AA of the Act (assignment of 
licences) the licensee is hereby authorised to assign its licence 
either generally or so far as relating to any specified premises 
as defined in subsection (1) of that section.

Condition 34:  Transfer of business

(1) Subject to paragraph (2), the licensee shall not transfer to 
another person ("the transferee") all or part of its business 
comprising the supply of gas to domestic customers at any 
premises ("the transferred business" and "relevant premises") 
unless -

(a) the Director is satisfied that the transferee -

(i) is or will be licensed to supply gas to the relevant premises 
from the proposed date of the transfer, and

(ii) will have the technical and financial capability to comply 
with the conditions of its licence (subject to any such 
modifications as are contemplated by sub-paragraph (b)) in 
respect of the supply of gas to the relevant premises, and

(b) if the licensee's licence contains additional conditions 
which affect the transferred business and, in the opinion of the 
Director, are for the purpose of protecting the interests of 
consumers -

(i) the transferee has given the Director its consent to the 
modification of the conditions of its licence by way of the 
insertion of like conditions or ones having the like effect, 
taking account of the purposes of those additional conditions, 
and

(ii) the licensee has given the Director its consent to the 
modification of those additional conditions so far as is 
necessary or expedient to give continued effect to the purposes 
of those conditions,

in each case, unless the Director otherwise accepts, by such date 
before the day of the proposed transfer as allows the Director a 
reasonable period within which to make the modifications in 
question with effect from that day.

(2)  Nothing in this condition shall prevent the licensee from 
transferring all or part of its business where it assigns to the 
transferee its licence either generally or so far as relating to 
the relevant premises.

(3)  In this condition, references to "additional conditions" 
are references to conditions of the licensee's licence which are 
additional to, or other than, these standard conditions.

Condition 35:  Supply to chains of business premises

(1) This condition applies where the licensee has entered into 
an agreement to supply any premises within the description set 
out in section 7A(1) (b) of the Act and other premises not 
falling within that description where -

(a) such other premises are used for non-domestic purposes, and

(b) all such premises are owned or occupied by a single person or 
body of persons whether corporate or unincorporate or by a group 
of persons, in relation to one of which the others are related 
persons.

(2) Standard conditions 2, 3, 7(5) and (6), 8 to 11, 15 to 21 
and 34 (where otherwise applicable) shall not apply in relation 
to any agreement of the kind referred to in paragraph (1) or, 
subject to paragraph (3), in relation to any domestic customer 
supplied with gas in pursuance of such an agreement.

(3) Where a provision of a standard condition mentioned in 
paragraph (2) applies in relation to both domestic and 
non-domestic customers, that paragraph shall not affect its 
application to domestic customers.

Condition 36:  Adjustment of amounts by reference to the retail 
price index

(1) Where it is provided in these standard conditions that an 
amount ("the specified amount") shall be adjusted in accordance 
with this condition, the adjusted amount shall be the specified 
amount multiplied by the appropriate factor mentioned in 
paragraph (2) (3).

(2) Except for the purposes of standard condition 32, the 
appropriate factor referred to in paragraph (1) shall be obtained 
by dividing the retail price index for the first month of the 
year beginning with an anniversary of the appointed day which 
includes the date by reference to which the adjustment falls to 
be made by the retail price index for the month beginning with 
the appointed day.

(3) For the purposes of standard condition 32, the appropriate 
factor referred to in paragraph (1) shall be obtained by dividing 
the retail price index for the month beginning with 1st December 
in the year previous to the relevant year in question (within the 
meaning of that condition) by the retail price index for the 
month beginning with 1st December 1995.

(4) Any reference in this condition to the retail price index is 
a reference to the general index of retail prices (for all items) 
published by the Central Statistical Office of the Chancellor of 
the Exchequer; and if that index is not published for any month 
that reference shall be read a. a reference to any substituted 
index or index figures published by that office for that month.

Condition 37:  Undertaking to be given by licensee to a relevant 
transporter in respect of shipping charges etc.

(1) Where the licensee supplies gas to any premises in relation 
to which a particular gas transporter is the relevant transporter 
("the premises concerned" and "the transporter concerned"), it 
shall (unless it has previously done so) give the transporter a 
binding undertaking in the specified terms and, where it has 
given such an undertaking but there is a change in the specified 
terms which is such that the undertaking previously given is not 
in conformity with the changed terms, the licensee shall' give 
the transporter a further binding undertaking in the changed 
specified terms which is expressed to supersede the undertaking 
previously given.

(2) An undertaking for the purposes of paragraph ( 1 ) shall be 
given -

(a) as soon as is reasonably practicable within a month of the 
transporter concerned becoming the relevant transporter or, if 
later, of the specified terms in relation to the transporter 
concerned being designated by the Director in pursuance of 
paragraph (3) or specified by the transporter in pursuance of 
paragraph (4), or

(b) in the case of a further undertaking, as soon as is 
reasonably practicable within a month of the change in the 
specified terms.

(3) Subject to paragraph ( 4 ), in this condition "specified 
terms" means terms from time to time designated, in relation to 
the transporter concerned, by the Director for the purpose. of 
this condition generally, being terms which appear to him (after 
consultation with that transporter) to be calculated to secure 
the following objectives, namely that if and only if -

(a)  the arrangements between the transporter concerned and a gas 
shipper for the conveyance of gas to the premises concerned ("the 
shipper concerned"), are terminated and no other arrangements 
between the transporter and that or another gas shipper for such 
conveyance have come into force, and

(b) the licensee has been given notice thereof by the transporter 
concerned,

the licensee will, in respect of any period before there is a 
relevant shipper in relation to the premises, be required to make 
such payments to the transporter concerned in respect of gas 
taken out of its pipe-line system for supply to the premises 
concerned as, as nearly as may be, are the came as the payments 
which would have been attributable thereto and due under the 
arrangements mentioned in sub-paragraph (a), if they had not 
terminated and had the shipper concerned not, thereafter, 
introduced any gas into the transporter's pipe-line system nor 
made arrangements to do so.

(4) After the expiry of six months from the coming into force of 
the licence of the transporter concerned under section 7 of the 
Act and if and so long as the Director has not designated terms 
in relation to that transporter, "the specified terms" means 
terms from time to time specified by the transporter concerned 
which are calculated to secure the objectives mentioned in 
paragraph (3).

(5) Changed specified terms shall only be designated by the 
Director or, as the case may be, specified by the transporter 
concerned, if by reason of changes in the arrangements between 
the transporter and gas shippers, the terms previously specified 
have ceased to be calculated to secure the objectives mentioned 
in paragraph (3).

(6) Different specified terms may be designated by the Director 
or, as the case may be, specified by the transporter concerned 
for the purposes of this condition which differ according to the 
shipper concerned, so far as is necessary or expedient to take 
account of differences in the terms of arrangements for the 
conveyance of gas made by different gas shippers.

(7)  The designated by the Director of specified terms in 
relation to a public gas transporter shall be by notice in 
writing given to that transporter.

(8)  Any reference in this condition to the termination of 
arrangements shall be construed as including a reference to the 
expiry of arrangements by effluxion of time and cognate 
expressions shall be construed accordingly.

(9) Notwithstanding anything in the foregoing paragraphs, the 
licensee shall not be required to comply therewith save in so far 
as such compliance would not, from time to time, be unlawful by 
reason of section 5(1) of the Act.

(10) In the circumstances mentioned in sub-paragraph, paragraph 
(3),  the licensee shall use its best endeavours to secure that a 
gas shipper makes arrangements with the transporter concerned for 
the conveyance of gas to the premises concerned which come into 
force, at the latest, within 35 days of