The Gas and Electricity Act 1968 (c. 39) 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. ...

, the

area gas board 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 century ...

s and the

Electricity Council The Electricity Council was a governmental body set up in 1958 to oversee the electricity supply industry in England and Wales. The council was established on 1 January 1958 to assume the coordinating and policy-making functions of the Central El ...

to borrow money, including foreign currency, to meet their obligations; it permitted statutory gas and electricity bodies to render technical aid overseas; and allowed further member appointments to the Electricity Council. The Act was principally in response to a rapid growth of the gas industry following the discovery of

North Sea gas North Sea oil is a mixture of hydrocarbons, comprising liquid petroleum and natural gas, produced from petroleum reservoirs beneath the North Sea. In the petroleum industry, the term "North Sea" often includes areas such as the Norwegian Sea and ...

on the

UK Continental Shelf The UK Continental Shelf (UKCS) is the region of waters surrounding the United Kingdom, in which the country has mineral rights. The UK continental shelf includes parts of the North Sea, the North Atlantic, the Irish Sea and the English Channel; th ...

in 1965.

Background

The government recognised that there had been significant technological development in the gas industry since the first natural gas was discovered in the UK sector of the North Sea in 1965. This included major capital investments in onshore terminals and cross-country pipelines. It was envisaged that sales of gas would double by 1970/71 and double again by 1973.Hansard, House of Commons 2 May 1968 Both the gas and electricity industries had expressed an interest in borrowing capital in foreign currency markets. The expanded functions of the Gas Council had made it desirable for the council membership to be increased. The Gas and Electricity Act 1968 addressed these issues and provided the necessary legal powers.

Gas and Electricity Act 1968

The Gas and Electricity Act 1968 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 3 July 1968. Its long title is: ‘An Act to increase the statutory limits on the amounts outstanding in respect to borrowings by the Gas Council and Area Gas Boards; to provide for the borrowing by the Electricity Council, the Scottish Electricity Boards and the Gas Council of money in foreign currency; to enable the said Councils and Boards and other electricity authorities to furnish overseas aid; to increase the number of members of the Gas Council; and for connected purposes.’

Provisions

The provisions of the act comprise eight sections * Section 1 extended the borrowing powers of Gas Council and area gas boards to £1,600 million or a greater sum not exceeding £2,400, as sanctioned by the minister. The

Gas (Borrowing Powers) Act 1965 The Gas Act 1965 (1965 chapter 36) is an Act of the Parliament of the United Kingdom which extended the powers of the Gas Council to buy, make or supply gas; it authorised and controlled the underground storage of gas; and permitted the sale of ...

ceased to have effect. * Section 2 Empowered the Electricity Council to borrow foreign currency by the issue of securities * Section 3 Empowered the Scottish Electricity Boards to borrow foreign currency by the issue of securities * Section 4 Empowered the Gas Council to borrow foreign currency by the issue of securities * Section 5 Permitted the furnishing of foreign aid by the Electricity Council, the Central Electricity Board, an area electricity board, the Gas Council, or an area gas board. * Section 6 Empowered the minister to appoint two further members to the Gas Council * Section 7 Interpretation * Section 8 Short title

Consequences and later enactments

As a consequence of Section 1(3)(a) of the 1968 act the

ceased to have effect. In 1969 the Electricity Council and the South of Scotland Electricity Board floated loans on the German market. Sections 1, 4 and 6 of the 1968 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 act was repealed by the

Electricity Act 1989 The Electricity Act 1989 (c. 29) provided for the privatisation of the electricity supply industry in Great Britain, by replacing the Central Electricity Generating Board in England and Wales and by restructuring the South of Scotland Electricity ...

(schedule 18).

References

{{reflist United Kingdom Acts of Parliament 1968 Natural gas industry in the United Kingdom Electric power in the United Kingdom

Background

Gas and Electricity Act 1968

Provisions

Consequences and later enactments

See also

References