87Power to take over gas activities

87 Power to take over gas activities

(1)  If the Minister receives a report from the Regulator under section 86 , the Minister may recommend that the Governor make an order under this section, if –

(a) a licensee has contravened this Act and the contravention is, in the opinion of the Governor, of a sufficiently serious nature; or

(b) a licensee's licence has ceased, or is to cease, to be in force; or

(c) it is necessary, in the Minister's opinion, to take over the licensee's gas activities (or some of them) to ensure that the supply of gas is sufficient for the reasonable requirements of all customers; or

(d) if the report was recommended under section 39(5) , it is necessary, in the Minister's opinion, to take over the licensee's gas activities (or some of them) to ensure public safety or to prevent damage to gas infrastructure.

(2)  Before the Minister makes a recommendation under subsection (1) , the Minister must give the licensee a reasonable opportunity to make written representations giving reasons why the order should not be made.

(3)  The Governor, on receipt of a recommendation from the Minister, may make an order under this section.

(4)  An order under this section –

(a) authorises the Regulator to take over the licensee's gas activities, or a specified part of the licensee's gas activities, or appoint an operator under section 88 ; and

(b) may contain ancillary directions including, without limitation, directions about how the costs of carrying out the gas activities, and revenue generated from the gas activities, are to be dealt with.

(5)  A direction under subsection (4)(b) operates to the exclusion of rights that are inconsistent with it.