The Gas Act 1965 (1965 chapter 36) is an Act of the

Parliament of the United Kingdom The Parliament of the United Kingdom is the supreme legislative body of the United Kingdom, the Crown Dependencies and the British Overseas Territories. It meets at the Palace of Westminster, London. It alone possesses legislative suprema ...

which extended the powers of the

Gas Council The Gas Council was a UK government body that provided strategic oversight of the gas industry in England, Wales and Scotland between 1949 and 1972. The British gas industry was nationalised under the provisions of the Gas Act 1948 (11 & 12 Geo. ...

to buy, make or supply gas; it authorised and controlled the underground storage of gas; and permitted the sale of industrial gas for non-fuel purposes. The Act was in response to changing technologies that had developed since the gas industry was nationalised in 1949. To finance the increased scope of the Gas Council the Gas (Borrowing Powers) Act 1965 (1965 chapter 60) was enacted which increased the Council’s borrowing powers to up to £1,200 million.

Background

The government recognised that there had been significant technological progress and changes in the gas industry since nationalisation in 1949. There were new possibilities of undertaking large-scale supply schemes associated with the import of

liquefied natural gas Liquefied natural gas (LNG) is natural gas (predominantly methane, CH4, with some mixture of ethane, C2H6) that has been cooled down to liquid form for ease and safety of non-pressurized storage or transport. It takes up about 1/600th the volu ...

from Algeria and the discovery of natural gas on the UK Continental Shelf.Hansard, House of Lords, Gas Bill, 20 May 1965 There were also opportunities for underground gas storage. Such storage enabled the industry to build up a reserve of gas in summer, when demand was low, which was drawn down to meet the higher demand in winter. The Gas Act 1965 had two main purposes: to make changes in the structure of the gas industry; and to allow the industry to develop underground storage of gas in natural strata. A subsidiary purpose was to amend Section 52 of the 1948 Act dealing with the industry's monopoly of piped gas supplies for use as fuel. The Gas Council was given powers to manufacture gas and supply it to the

Area Gas Boards The area gas boards were created under the provisions of the Gas Act 1948 enacted by Clement Attlee's post-war Labour government. The Act nationalised the British gas industry and also created the Gas Council. History From the early 19th centur ...

. The increased scope of work of the Gas Council was financed by increased borrowing. The limit had been £650 million, the Gas (Borrowing Powers) Act 1965 was enacted which increased the Council’s borrowing to up to £1,200 million.

Gas Act 1965

The Gas Act 1965 (1965 c. 36) received

Royal Assent Royal assent is the method by which a monarch formally approves an act of the legislature, either directly or through an official acting on the monarch's behalf. In some jurisdictions, royal assent is equivalent to promulgation, while in other ...

on 5 August 1965. Its long title is: ‘An Act to confer additional functions on the Gas Council and to make further provision as to the rating of the Gas Council and Area Gas Boards; to increase the number of members of the Gas Council; to regulate and facilitate the storage of gas by the Council and those Boards in underground strata, and to modify section 52 of the Gas Act 1948; and for connected purposes.’

Provisions

The provisions of the Act comprise 37 Sections in 3 Parts and 6 Schedules * Part I – The Gas Council ** Section 1. Empowered the Gas Council to manufacture and supply gas and solid fuels ** Section 2. Empowered the Minister to appoint additional members of the Gas Council ** Section 3. Rating of the Gas Council and other gas authorities * Part II – Underground storage of gas by gas authorities ** Sections 4 to 28 concerning the authorisation, control, compensation, rights, responsibilities liabilities, safety conditions for the underground storage of gas * Part III – General ** Section 29. Modification of section 52 of principal Act, allowed sale of gas for industrial purposes which do not consist of or include the use as a fuel ** Section 30. General powers of gas authorities ** Section 31. Financial provisions ** Section 32. Short title, interpretation, extent and commencement * Schedules ** Schedule 1. Amendments as respects functions of Gas Council ** Schedule 2. Storage Authorisation Orders ** Schedule 3. Certificates and Statutory Licences ** Schedule 4. Acquisition of land ** Schedule 5. Inquiries into accidents ** Schedule 6. Power to enter land and to prospect and survey Land

Consequences of the Act

The effect of the Act was to put the Gas Council on a par with the Area Gas Boards. It was enabled ‘to manufacture gas, to get or acquire gas in or from Great Britain or elsewhere and to supply gas in bulk to any area board. It was also enabled to manufacture, treat, supply or sell solid fuels, products or by-products, in the same way as the area boards. The Gas Council played an increasing role in the direction of the British gas industry. It acted as the central purchaser of Natural gas from Algeria and the North Sea, the distribution of which was national enterprise. The Act allowed the Minister to appoint three extra members to the Gas Council Board, this was increased to five in 1968.

Gas (Borrowing Powers) Act 1965

The increased remit of the Gas Council was reflected in the Gas (Borrowing Powers) Act 1965 which was enacted to increase the Council's financial limit from £650 million to £900 million, although the Minister of Power was empowered to increase this to £1,200 million. The Gas Council expected that £1,000 million would cover its requirements to 1970. As a consequence of the Section 1(3)(a) of the

Gas and Electricity Act 1968 The Gas and Electricity Act 1968 (c. 39) is an act of the Parliament of the United Kingdom which extended the powers of the Gas Council, the area gas boards and the Electricity Council to borrow money, including foreign currency, to meet their ...

the Gas (Borrowing Powers) Act 1968 ceased to have effect.

Later enactments

Sections 1–3, 29 and 30 of the 1965 Act were repealed by the

Gas Act 1972 The Gas Act 1972 (1972 c. 60) was an Act of the Parliament of the United Kingdom which restructured the British gas industry. It established the British Gas Corporation to exercise full responsibility for the oversight, control and operation of ...

The

Gas Act 1986 The Gas Act 1986 (Chapter 44) created the framework for privatisation of the gas supply industry in Great Britain. This legislation would be replacing the British Gas Corporation (government or state ownership) with British Gas plc (private owne ...

amended parts of the Gas Act 1965

References

{{reflist United Kingdom Acts of Parliament 1965 Natural gas industry in the United Kingdom