Gas Supply (Gas Quality Specifications) Act 2009

This section applies in respect of the compensation scheme as the scheme applies to gas consumers.

The relevant gas quality specification for a gas consumer in relation to the delivery of gas to the consumer under a particular downstream agreement is the gas quality specification with which the gas to be delivered under the agreement must have complied, immediately before 1 January 2009.

The costs referred to in section 16(1)(a), of a gas consumer, are, under the regulations, to be limited to —

the costs necessary to restore any reduction in the capacity of the consumer’s operations resulting from being delivered the gas, to the extent to which the reduction in capacity is attributable to the gas not complying with the relevant gas quality specification for the consumer; and

the plant and equipment costs of the gas consumer, to the extent to which those costs are attributable to the gas not complying with the relevant gas quality specification for the consumer; and

increases in operating and maintenance costs of the gas consumer resulting from being delivered the gas, to the extent to which those increases are attributable to the gas not complying with the relevant gas quality specification for the consumer.

A gas consumer is not to be entitled to compensation under the regulations in relation to the delivery of gas unless the consumer is entitled to the delivery of the gas under a downstream agreement that —

was in force immediately before 1 January 2009; and

is not an extension (by renegotiation, or exercise of an option to extend, on or after 1 January 2009) of such an agreement.

A gas consumer is not to be entitled to compensation under the regulations in relation to gas delivered to the consumer after 1 January 2029.