Section 148: Grant of Gas Distribution Licence.

1 Subject to sections 111 and 125 of this Act or regulations made under this Act, the Authority may upon approval of an application and payment of prescribed fees, grant and issue a qualified person gas distribution licence with rights to establish, construct, and operate a gas distribution system and to distribute and sell its natural gas without discrimination to consumers in a local distribution zone.

2 Notwithstanding the rights of a gas retailer under this Act, the holder of a gas distribution licence shall be entitled to sell natural gas to customers that are not wholesale customers.

3 The Authority shall, in considering an application for a gas distribution licence, take into account the economic case for the licence, including the potential demand for its use.

4 The geographical limit of a local distribution zone shall be defined in the relevant gas distribution licence.

5 The rights and duties under a gas distribution licence shall be exclusive to the gas distributor for the validity period of the distribution licence.

6 A gas distribution licence may—
a include provisions for providing third party access to the gas distribution network to a gas retailer or gas distributor on its own initiative; and
b permit access to a gas retailer to the gas distribution network under terms and conditions agreed to by the parties.

7 Subject to subsection (6), the gas distributor shall own the marketable natural gas in the gas distribution network.