The Gas Act 1986

Overview

The Gas Act 1986 restructured the gas industry, transitioning from being publicly owned to a privatised competitive market. This involved abolishing the exclusive powers of the British Gas Corporation. The Act has been amended over time, but remains foundational for gas regulation in the UK. 

The Act is divided into several parts: 

• Part 1 - Gas Supply
• The objectives and duties of regulatory bodies. 
• Sets out the Licencing regime for activities relating to gas. 
• Introduces the Gas Code. 
• Sets out standards of performance.
• Establishes a framework for issuing compliance orders.

• Part 2 - Transfer of Assets and Privatisation
• Makes provision for the privatisation of the British Gas Corporation to a new private company.
• Makes provision for the dissolution of the British Gas Corporation's powers.

• Part 3 - Miscellaneous and Supplementary Provisions 
• Makes additional provisions relating to orders, finances and amendments.