Part 13: General Schedule 4: Utility activities Part 1: Activities that are utility activities Gas and heat
Paragraph 1 sets out when activities associated with gas and heat are utilities activities.
	Subparagraph (1) specifies that the provision or operation of fixed networks to provide a service to the public in connection with the production, transport or distribution of gas or heat and the supply of gas or heat to such networks are utility activities.
	Sub-paragraph (2) sets out circumstances where the supply of gas and heat to a network is not considered a utility activity, all of which must be met for the exemption to apply. These are: that the operator (i.e. the supplier of gas or heat) is a private utility or public undertaking; that the operator produces the gas or heat as an unavoidable by-product when carrying out an activity that is not a "specified activity"; and the amount of gas or heat supplied to the network represents not more than 20% of the operator’s turnover amount. The specified activities (which are referred to in this paragraph and paragraphs 2 and 3 of the Schedule) are set out in paragraph 7 of the Schedule.
	Sub-paragraphs (3) and (4) provide that an appropriate authority may make regulations setting out how to calculate the amount referred to in sub-paragraph (2)(c) and set out a non-exhaustive list of provisions that may be included in those regulations.