Commentary on provisions of Act Reduction of domestic energy bills in England, Wales and Scotland Section 3: GB gas scheme: supplementary provision
Section 3 provides equivalent provision in relation to a domestic gas price reduction scheme in Great Britain to Section 2 in relation to an electricity scheme. It enables the Secretary of State to make regulations designating a domestic gas price reduction scheme for Great Britain. The effect of designation is that the additional provisions set out in section 3 apply in relation to the designated scheme.
	Subsection (1) provides the designation power. Section 3 applies to the designated scheme as it has effect from time to time.
	Subsection (2) imposes duties on gas suppliers in relation to applying to join the designated scheme, and once joined to remain in and comply with the scheme (unless they leave in accordance with the scheme). Government expects all current suppliers to have joined the scheme by the time this section comes into force. This provision ensures that any new suppliers who enter the market are required to apply to join the scheme.
	Subsections (3) and (4) make similar provision for gas shippers. Not all shippers are required to enter the designated scheme in order for it to operate effectively, only those shippers who have contracts with gas suppliers who are party to the scheme and have relevant information to provide in order for the scheme to operate effectively. Therefore, subsection (3) requires a gas shipper to apply to join the designated scheme if it receives a written request to do so from another party to the scheme, and the scheme would not operate effectively if that gas shipper was not a party. The gas shipper must make the application as soon as reasonably practicable after receiving the request.
	Subsection (4) requires a gas shipper, once joined, to remain in and comply with the designated scheme (unless it leaves in accordance with the scheme).
	Subsection (5) requires the Secretary of State to publish the designated scheme as it has effect from time to time, so far as the Secretary of State considers it appropriate to do so.
	Subsection (6) refers to paragraph 4(f) of Schedule 4B to the Gas Act 1986 (which is inserted by paragraph 1 of Schedule 7 to the Act). Paragraph 4(f) of Schedule 4B to the Gas Act 1986 provides that the duties set out in subsections (2), (3) and (4) for gas suppliers and gas shippers to apply to, remain in and comply with the designated scheme are "relevant requirements" and so enforceable by Ofgem (using its powers in Part 1 of the Gas Act 1986). The exception to this is where non-compliance with the terms of the scheme involves the amounts payable by or to the Secretary of State under the scheme (which is to be enforced under the terms of the Scheme Documents). Subsection (6) makes clear that such statutory enforcement does not prevent other remedies for non-compliance being pursued, for instance in the law of contract.
	Subsection (7) provides that the Secretary of State is not liable in the law of contract for things done or omitted in the performance of the designated scheme, unless the liability relates to payment of an amount under the scheme.
	Subsection (8) provides that a domestic gas price reduction scheme for Great Britain that was established before the power to establish such schemes under section 1(3) came into force may be designated under Section 3. As noted above, a gas scheme was established and operational from 1 October 2022. This subsection makes clear that this scheme may be designated.
	Subsection (9) makes it clear that no statutory enforcement is permitted in relation to non-compliance occurring before the scheme was designated.
	Subsection (10) states that regulations under section 3 are subject to the negative procedure.