Commentary on Sections Costs of policing at gas facilities Section 88 – Costs of policing at gas facilities: recovery of costs
240.This section makes provision for the designated gas transporter to be able to recoup the costs that it has had to pay for the extra policing from its customers. Subsection (1) of this section empowers the Secretary of State to determine the amount of the costs to be paid by the designated gas transporter under section 85 or 86, the manner and time when the costs are to be paid and the persons to whom the costs are to be paid.
241.Subsection (2) provides that where a designated gas transporter is required to pay costs under section 86, the occupier of the gas facility can recover the costs directly from the designated gas transporter.
242.Subsection (3) provides that, despite any licence condition to the contrary, a designated gas transporter can, in determining its charges for conveying gas, take into account: (a) any payments it has made under sections 85 or 86; and (b) reasonable costs that it has incurred as a party to an agreement under section 13 of the Police (Scotland) Act 1967 for the guarding, patrolling and watching of the gas facility entered into at the Secretary of State’s request.
243.Subsection (4) makes provision for the Secretary of State to direct the Gas and Electricity Markets Authority (GEMA) to allow the designated gas transporter to take into account in determining its charges: (a) any payments it has made under sections 85 or 86; or (b) any payments made or costs incurred in or in relation to a specified period.
244.Subsection (5) imposes a consultation requirement upon the Secretary of State to consult GEMA and the designated gas transporter prior to making a direction under subsection (4).