Malaysia legislation

Section 14

of Distribution Of Gas Ordinance, 2016

Section 14

―(1) A licensee shall import, distribute, transport, retail or supply gas and carry out any other licensed activity in accordance with the terms and conditions of his licence.

(2)

(a)

Without prejudice to the generality of subsection (1), a licensee who has been licensed to retail gas at an area of supply

(referred to in this section as “retail licensee”), shall upon request of a consumer, supply gas to the consumer’s premises in

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accordance with the provisions of this section and shall ensure continuity of such supply.

(b)

Any consumer requiring supply of gas shall submit a written request to a retail licensee whose area of supply covers that consumer’s premises specifying―

(i)

the address of the consumer’s premises to which gas is to be supplied and delivered;

(ii)

the proposed date on which the supply of gas is to commence and the period of supply;

(iii)

the quantity of gas required; and

(iv)

the facility established in the consumer’s premises to receive the gas.

(c)

Upon receipt of the notice from the consumer, the retail licensee shall notify that consumer―

(i)

the extent to which the request made by the consumer could be met and specify any counter proposal of the retail licensee;

(ii)

the tariffs which had been approved in accordance with section 12(1);

(iii)

the amount and nature of security to be furnished by the consumer for payment of the tariffs; and

(iv)

any modification or adaptation of the facility at the consumer’s premises needed to receive the gas supplied and if such modification or adaptation is to be carried out by the retail licensee, the estimated costs thereof.

(d)

In the event of any dispute between the retail licensee and the consumer following receipt by the consumer of the notification from the retail licensee under paragraph (c), such dispute shall be referred to the Director for resolution, and any decision by the Director thereon shall be binding on both the retail licensee and the consumer.

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(3)

The retail licensee and the consumer may enter into agreement, containing any special terms or arrangements not inconsistent with the terms and conditions of the licence of the retail licensee, for the delivery and supply of gas to the consumer’s premises; and a copy of such agreement shall be furnished to the

Director by the retail licensee.

Entry onto land by licensee 15.―(1) Subject to as hereafter provided and to the terms and conditions in his licence, a licensee may enter upon land, whether alienated or State land for the purpose of―

(a)

laying or constructing under or above such land, pipelines;

(b)

building any installation for the distribution of gas;

(c)

inspecting and surveying the land, including carrying out soil and site investigation, for the purposes specified in paragraphs (a) and (b); or

(d)

maintaining, repairing, upgrading, altering, disconnecting, replacing or removing any pipeline or installation built by the licensee on the land, upon giving written notice of his intended entry onto the land to the

Director (if the land is State land) or to the registered proprietor of alienated land, stating the precise nature of the acts to be carried out by the licensee on the land, and a copy of the notice shall be sent by the licensee to the Superintendent having jurisdiction over the said land.

(2)

The licensee shall pay to the Government or the registered proprietor, as the case may be, compensation for the entry, occupation and use of the land and any damage to any property or crops thereon, including any periodical payment for the use of the land for the said purpose, the amount of which is to be assessed by the Superintendent.

(3)

In the event that a licensee, after service of the notice on the registered proprietor under subsection (1), fails or is unable to

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secure entry onto the land to carry out the acts described in that notice, the Minister may direct that the land or any part thereof be acquired for the intended purpose and use by the licensee.

(4)

The acquisition under subsection (3) shall be deemed to be for a public purpose and shall be carried out in accordance with Part

IV of the Land Code [Cap. 81 (1958 Ed.)]:

Provided that any compensation to be paid for such acquisition shall be borne by or recovered from the licensee.

(5)

Nothing in this section shall affect or prejudice the rights of the Government under sections 34 and 37 of the Land Code [Cap.

81 (1958 Ed.)].

Wayleave agreement 16.

Nothing in section 15 shall be deemed to prohibit a licensee from entering into an agreement, commonly described as a

“wayleave agreement” with the owner or occupier of any land to enter, occupy and use that land for any of the purposes stipulated in that section:

Provided that it shall be the duty of the licensee to deliver a copy of the wayleave agreement to the Director and the Superintendent as soon as the execution thereof has been completed.

Removal or relocation of pipeline and installation on land 17.―(1) Where any pipeline or installation has been built on any land and if the owner or occupier shall desire the same to be removed or relocated to another part of the land or to land at a higher or lower level or to be altered on the ground that the existing location of the pipeline or installation or any part thereof―

(a)

interferes with the use or intended use or development on the land; or

(b)

is likely to endanger the health or safety of persons or property on the land or adjoining land,

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the owner or occupier may serve a notice in writing on the licensee requesting him to remove or relocate the same accordingly.

(2)

The costs incurred in the removal or relocation of the pipeline or installation and who should bear and pay such costs, shall be agreed upon by the licensee and the owner or occupier of the land.

(3)

If there is no agreement reached on the removal or relocation of the pipeline or installation or with regard to the issue of costs, within ninety days after service of the notice under subsection

(1)

, the matter shall be referred, by either the licensee or the owner or occupier of the land, to the Director for adjudication and any decision by the Director shall be final and binding upon the licensee and the owner or occupier of the land:

Provided however, if the owner of the land is the Government, the matter shall be referred to arbitration under the Arbitration Act 2005 [Act 646].

Compliance with directions, etc. of Director 18.

In carrying out or performing any licensed activity or in providing any service to any consumer arising from the licensed activity, the licensee shall, in addition to compliance with the terms and conditions of the licence and the provisions of this Ordinance and any other written law, comply with any direction, decision, or order made by the Director from time to time under this Ordinance.

Access to pipeline, installation, facility and information by

Director 19.

The licensee shall―

(a)

grant reasonable access to the Director or any person duly authorized by him to inspect any installation, facility, pipeline or piping system used by the licensee to carry out any licensed activity or to provide service to consumers;

(b)

keep separate and accurate account or accounting record for business associated with the performance of any licensed activity and service rendered to consumers and provide

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upon request to the Director copies thereof certified by a qualified company auditor;

(c)

furnish to the Director, upon request, such information, data and documents relating to the licensee’s business under its licensed activity or service rendered to consumers; and

(d)

provide to the Director information on all accidents, fire and other incidents relating to any pipeline, installation and piping system used in connection with its licensed activity.

PART IVA

PROVISIONS RELATING TO HYDROGEN

Appointment of Regulator, etc.

Section 14 — Distribution Of Gas Ordinance, 2016 | mylaw.my