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GAS SUPPLY ACT 1993

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1 PART I PRELIMINARY-1. Short title, commencement and application.

(1) This Act may be cited as the Gas Supply Act 1993 and shall come into force on such date as the Minister may, by notification in the Gazette , appoint.

(2) This Act shall apply throughout Malaysia; however the Minister may by order suspend the operation of the whole or any of the provisions of this Act in any State.

(3) This Act shall apply to the delivery of gas:

(a) in relation to:

(i) liquefied natural gas, from the connection flange of the loading arm at the regasification terminal;

(ii) natural gas received from a gas processing plant or an onshore gas terminal, from the last flange of the gas processing plant or onshore gas terminal;

(iii) natural gas imported into Malaysia through pipelines excluding pipelines upstream of a gas processing plant or an onshore gas terminal, from the international border,

to the transmission

1A PART I PRELIMINARY-1A. Application for State of Sarawak.

Notwithstanding subsection 1(2), this Act shall apply to the State of Sarawak, upon prior approval of the Yang di-Pertua Negeri Sarawak, on the date to be appointed by the Minister by notification in the Gazette and the Minister may appoint different dates for the coming into operation of different provisions of this Act.

[1A. Ins. Act A1515:s.4A]


2 PART I PRELIMINARY-2. Interpretation.

In this Act, unless the context otherwise requires:

"area of supply" means the area within which a person is licensed to regasify, ship, transport, distribute, retail or use gas;

["area of supply" Subs. Act A1515:s.5]

"authorised officer" means any public officer or officer of the Commission who is authorised in writing by the Minister for the purposes of this Act;

[Subs. Act A1126:s.4]

"Chairman" means the Chairman of the Energy Commission appointed by the Minister under the Energy Commission Act 2001 [Act 610];

[Ins. Act A1126:s.4]

"Chief Executive Officer" means the Chief Executive Officer of the Commission;

["Chief Executive Officer" Ins. Act A1515:s.5]

"city gate station" means a station with gas measurement and pressure regulating devices where gas is received directly fro

3 PART II ESTABLISHMENT-3. [Deleted]

(Deleted by Act A1126:s.5)


4 PART III FUNCTIONS AND DUTIES OF COMMISSION-4. Functions and duties.

(1) The Commission shall have the following functions and duties:

(a) to secure that a licensee authorized by or under this Act to import into regasification terminal, ship or retail gas through pipelines satisfies all reasonable demands for gas;

(b) to ensure that a regasification, transportation or distribution licensee satisfies all reasonable demands for access to the facility;

(c) without prejudice to the generality of paragraphs (a) and (b) , to ensure that such licensee is able to finance the import into regasification terminal, shipping or retail or the provision of facility of regasification, transportation or distribution of gas;

(d) to protect the interests of consumers of gas supplied through pipelines in respect of:

(i) the terms of supply and the utilization of facility;

(ii) the continuity of supply; and


4A PART III FUNCTIONS AND DUTIES OF COMMISSION-4A. Authorised officer.

(1) The Minister may in writing authorize any public officer or officer of the Commission to exercise the powers of enforcement under this Act.

(2) Any such officer shall be deemed to be a public servant within the meaning of the Penal Code [ Act 574 ] .

(3) In exercising any of the powers of enforcement under this Act, an authorized officer shall on demand produce to the person against whom he is acting the authority issued to him by the Minister.

[ 4A. Subs. Act A1515:s.7 ]


5 PART IV POWERS OF ENTRY, INVESTIGATION AND PROSECUTION-5. Power of entry by warrant or otherwise, inspection, examination, seizure, etc.

(1) An authorised officer may, for the purposes of discharging any of his duties or carrying out any of his functions under this Act or any regulation made thereunder, enter at any reasonable time upon and land, house or building to inspect and examine any pipeline or piping system or part thereof, or for other proper cause including the investigation of any infringement or offence under this Act.

[ (1) Gen. Am. Act A1515:s.3; Am. Act A1515:s.8 ]

(2) In exercising his powers under subsection (1) an authorised officer may:

(a) take samples of any gas from the premises entered and require the occupier or his agents or servants present in the premises to show him every place and any pipeline, piping system, storage tank or cylinder in his premises;

[ (a) Gen. Am. Act A1515:s.3 ]

(b) test or cause to be tested, at any convenient place and at suc

6 PART IV POWERS OF ENTRY, INVESTIGATION AND PROSECUTION-6. Powers of investigation.

(1) The authorized officer shall have the power to conduct an investigation where there is reason to suspect that an offence or infringement of any prohibition has been or is being committed in relation to this Act or under any of its subsidiary legislation or any codes, guidelines or directions issued by the Commission.

(2) The authorized officer shall have all the powers of a police officer of whatever rank as provided for under the Criminal Procedure Code [ Act 593 ] in relation to police investigation, and such powers shall be in addition to the powers provided for under this Act and not in derogation thereof.

(3) In the case of an offence committed under this Act or under any of its subsidiary legislation or any codes, guidelines or directions issued by the Commission, upon completion of his investigation, the authorized officer shall immediately give all information relating to the commission of the offence to an o

7 PART IV POWERS OF ENTRY, INVESTIGATION AND PROSECUTION-7. Power to require attendance of person acquainted with case.

(1) An authorised officer making an investigation under section 6 may by order in writing require the attendance before himself of any person who appears to the authorised officer to be acquainted with the circumstances of the case, and such person shall attend as so required.

(2) In the case of an offence committed under this Act, if any such person fails to attend as so required, the authorised officer may report such failure to a Magistrate who shall issue a summons to secure the attendance of such person as required by such order aforesaid.

[ (2) Am. Act A1515:s.10 ]

"(3) In the case of an infringement of any prohibition under this Act, if any such person fails to attend as so required, the authorized officer may report such failure to the Commission for further action under sections 28L and 28O.".

[ (3) Ins. Act A1515:s.10 ]


8 PART IV POWERS OF ENTRY, INVESTIGATION AND PROSECUTION-8. Examination of person acquainted with case.

(1) An authorised officer making an investigation under section 6 may obtain information from any person supposed to be acquainted with the facts and circumstances of the case.

(2) Such person shall be legally bound to answer all questions relating to such case put to him by the authorised officer:

Provided that such person may refuse to answer any question the answer to which would have a tendency to expose him to a criminal charge or penalty or forfeiture.

(3) A person making a statement under this section shall be legally bound to state the truth, whether or not such statement is made wholly or partly in answer to questions.

(4) The authorised officer obtaining information from a person shall first inform that person of the provisions of subsections (2) and (3).

(5) A statement made by any person under this section shall, whenever possible, be reduced into writing and signed by the person making it or affixed

9 PART IV POWERS OF ENTRY, INVESTIGATION AND PROSECUTION-9. Prosecution.

No prosecution shall be instituted for an offence under this Act or any regulations made under this Act except by or with the consent in writing of the Public Prosecutor.

[Subs. Act A1126:s.9]


10 PART IV POWERS OF ENTRY, INVESTIGATION AND PROSECUTION-10. Reward for information.

In the case of a conviction involving a fine, the court imposing the fine may, on the application of the officer conducting the prosecution, direct the payment of any part of the fine but not exceeding one half of such fine in such proportion as the court deems fit to the person who gave the information leading to the conviction.


11 PART V LICENCE-11. Licence required for supply of gas; terms, conditions and contents of licence.

No person shall carry out any activity of:

(a) import into regasification terminal;

(b) regasification of gas;

(c) shipping of gas;

(d) transportation of gas;

(e) distribution of gas;

(f) retail of gas; or

(g) use of gas,

unless such person is licensed under this Act.

[11. Subs. Act A1515:s.11]


11A PART V LICENCE-11A. Application for grant of licence.

(1) A person may apply to the Commission for a licence for the activities mentioned in section 11 subject to such prescribed fee as may be imposed by the Commission.

(2) Any person applying for a licence under subsection (1) shall provide to the Commission the following details:

(a) in the case of a licence for distribution, retail or use of gas:

(i) area of supply;

(ii) site location plan showing the proposed location of the premises to be installed with the pipeline and its neighbouring area;

(iii) piping layout showing details of pipeline routes including the location of any storage tank or cylinder, site boundary, deflection wall and the nearest sources of ignition;

(iv) technical specifications of the pipeline or piping system;

(v) certification of the pipeline or piping system; and

(vi) any other information as may be required by the Commission; and

11B PART V LICENCE-11B. Grant of licence.

(1) The Commission may grant:

(a) a licence for the regasification or distribution of gas, with the approval of the Minister; or

(b) a licence for the transportation of gas, to a person designated by the Minister; or

(c) a licence for the import into regasification terminal, shipping, retail or use of gas,

on such terms and conditions as may appear to be requisite or expedient having regard to the duties imposed by section 4 and on payment of such prescribed fee as may be imposed by the Commission.

(2) A licence shall not be granted to any person:

(a) if the grant of the licence may, in the opinion of the Commission, give rise to a conflict of interest in the discharge of any duty imposed on the person under this Act or any other licence granted to him under this section; or

(b) who is not incorporated in Malaysia

11C PART V LICENCE-11C. Power to impose additional terms or conditions.

(1) The Commission may at any time:

(a) impose any additional terms or conditions on a licence, including existing licences; or

(b) amend any terms or conditions previously imposed on any licence,

in accordance with the procedure as may be prescribed.

[11C. Ins. Act A1515:s.12]


12 PART V LICENCE-12. Security, suspension or revocation of the licence.

(1) Before the issue of any licence the Commission may require a security, either in the form of cash or bank guarantee as the Commission may specify, to be furnished for the due observance of the terms and conditions of the licence. The amount of the said security shall be based on the licensee's construction costs or operational costs or both, as the case may be, as determined by the Commission and such amount may be reviewed from time to time.

[Am. Act A1126:s.11]

(2) A licence may at any time be suspended or revoked by the Commission upon breach of any of the conditions thereof or in default of payment of any monies accrued due thereunder, or if the licensee ceases to construct or operate the pipeline or piping system which he was authorised to do under the licence granted to him or on any other ground determined by the Commission to be necessary or expedient:

[(2) Am. Act A1126:s.11;

13 PART VI PROVISIONS RELATING TO THE LICENSEE, SUPPLY OF GAS, ENTRY INTO LAND, ETC.-13. Power to fix tariffs.

(1) The Commission, with the approval of the Minister, may determine tariffs and charges to be levied, by:

(a) a regasification, transportation or distribution licensee in respect of the utilization of their facilities for regasification, transportation or distribution of gas; and

(b) a retail licensee in respect of the sale or use of gas through the retail licensee's piping system to the premises of a consumer.

(2) The Commission may issue guidelines on tariffs and charges including:

(a) the methodology, principles or category of tariffs and charges;

(b) the duration for the imposition of tariffs and charges and for the review of the tariffs and charges; and

(c) the submission of any information as the Commission deems requisite and necessary.

(3) A regasification, transportation, distribution or re

13A PART VI PROVISIONS RELATING TO THE LICENSEE, SUPPLY OF GAS, ENTRY INTO LAND, ETC.-13A. Obligation to submit business plan.

(1) Subject to the terms and conditions of a licence, the Commission may request a regasification, transportation or distribution licensee to submit a five year, or such other period as determined by the Commission, rolling business plan relating to licensed activities updated on an annual basis or any other time period as determined by the Commission according to procedures provided in the guidelines issued by the Commission.

(2) Any licensee referred to in subsection (1) who contravenes this section commits an offence.

[13A. Ins. Act A1515:s.15]


13B PART VI PROVISIONS RELATING TO THE LICENSEE, SUPPLY OF GAS, ENTRY INTO LAND, ETC.-13B. Standards of performance of supply of gas and services by licensee.

(1) The Commission may issue guidelines on such standards of performance in connection with the:

(a) supply of gas and provision of services to consumers by retail licensee; and

(b) services in relation to the activities of regasification, transportation or distribution licensee.

(2) The standards referred to in subsection (1) include such consumer service standards to be implemented by the licensee and procedures for:

(a) reasonably meeting consumer requirements;

(b) the handling of consumer complaints and disputes;

(c) procedures for the compensation of consumers in case of a breach of the standards of performance, consumer service standards or for a breach of any of its obligations under the Act that affects consumers; and

(d) the protection of consumer information.

(3) The licens

13C PART VI PROVISIONS RELATING TO THE LICENSEE, SUPPLY OF GAS, ENTRY INTO LAND, ETC.-13C. Separate account for activities under the licence.

(1) In respect of its licensed activities, a licensee shall maintain proper annual accounts separate from the licensee's other business and the Commission may request the licensee to submit such report to the Commission from time to time.

(2) Such separate accounts shall contain sufficient details of any revenues, costs, assets, liabilities, reserves, provisions or any other matter which have been either:

(a) charged from or to any other business; or

(b) determined by allocation or apportionment attributable and identifiable to the licensed activity or activities,

or any other information deemed necessary by the Commission.

(3) Any licensee who contravenes this section commits an offence and shall, on conviction, be liable to a fine of not exceeding five hundred thousand ringgit and a further fine of one thousand ringgit for every day the offence is continued after con

13D PART VI PROVISIONS RELATING TO THE LICENSEE, SUPPLY OF GAS, ENTRY INTO LAND, ETC.-13D. Requirements on licensing.

(1) Notwithstanding any other provisions of this Act, if at any time it appears to the Commission that a licensee has failed to comply with any requirement of or to meet any of its duties or obligations under this Act or under any of its subsidiary legislation or the terms or conditions of the licence, the Commission may issue a direction requiring the licensee to rectify the failure or to comply with the requirements, duties or obligations or terms or conditions of the licence within a specified period as the Commission may determine.

(2) The licensee shall take all reasonable measures to comply and submit periodic compliance reports on the measures taken to the satisfaction of the Commission.

(3) Any licensee who contravenes subsection (2) commits an offence.

[13D. Ins. Act A1515:s.15]


14 PART VI PROVISIONS RELATING TO THE LICENSEE, SUPPLY OF GAS, ENTRY INTO LAND, ETC.-14. Duty of retail licensee to supply gas to consumers upon request or duty of the regasification, transportation or distribution licensee to allow utilization of their facilities by third parties.

(1) Subject to the following provision of this Part and terms and conditions of a licence imposed under section 11B, regulations, codes or guidelines made under this Act, a:

(a) retail licensee shall upon request of a consumer supply gas to the consumer's premises; and

(b) regasification, transportation or distribution licensee shall upon request of a shipping licensee allow the utilization of his facility.

(2) Where any person requires a supply of gas under paragraph (1) (a) , he shall give to the retail licensee a notice specifying:

(a) the premises in respect of which the supply is required;

(b) the day on which the supply is required to commence;

(c) the quantity which may be required at any time;

(d) the minimum period for which the supply is required to be given; and

(e) the

15 PART VI PROVISIONS RELATING TO THE LICENSEE, SUPPLY OF GAS, ENTRY INTO LAND, ETC.-15. Exceptions to duty to supply gas.

[Shoulder note Am. Act A1515:s.17]

(1) Nothing in subsection 14(1) shall require a retail licensee to supply gas to consumers or a regasification, transportation or distribution licensee to allow the utilization of his facility, if:

[(1) Subs. Act A1515:s.17]

(a) it is contrary to any law;

(b) under the agreement, he is so exempted;

[(b) Am. Act A1515:s.17]

(c) he is prevented from doing so by the malfunction or failure of any pipeline or piping system beyond his control, or as a result of fire, flood, landslide, explosion, accident, industrial disturbance on a national level, emergency, riot, civil disturbance or war, or any other similar event not within the control of the licensee;

[(c) Gen. Am. Act A1515:s.3]

(d) the supply of gas or the utilizati

16 PART VI PROVISIONS RELATING TO THE LICENSEE, SUPPLY OF GAS, ENTRY INTO LAND, ETC.-16. Power of licensee to recover expenses.

(1) Where any pipeline or piping system is provided by a licensee for the purposes of supplying gas or allowing the utilization of his facility under subsection 14(1), the licensee may, with the Commission's approval, require any expenses reasonably incurred by the licensee to be defrayed by the person requiring the supply of gas or the utilization of facility to such extent as is reasonable having regard to the circumstances.

[(1) Am. Act A1126:s.14; Subs. Act A1515:s.18]

(2) The expenses reasonably incurred in providing any pipeline or piping system under subsection (1) include the capitalised value of any expenses likely to be so incurred in maintaining it, if such expenses cannot be recovered by the licensee as part of the tariffs subject to section 13, where applicable, levied by him for the supply of gas or such utilization of facility.

[(2) Gen. Am. Act A1515:s. 3; Am. Act A1515:s.

17 PART VI PROVISIONS RELATING TO THE LICENSEE, SUPPLY OF GAS, ENTRY INTO LAND, ETC.-17. Power of licensee to require security.

(1) A shipping or retail licensee may require any person who requires supply of gas to give him reasonable security for all monies which may become due to him:

(a) in respect of the shipping or retail of gas; and

(b) in respect of any necessary work to be done for the retail of gas,

and if the person fails to give such security, the shipping licensee may refuse to ship or in the case of a retail licensee, to supply the gas or provide the piping system until the security has been given.

(b) by inserting after subsection (1) the following subsection:

[(1) Subs. Act A1515:s.19]

(1A) A regasification, transportation or distribution licensee may require any person who intends to utilize his facility under paragraph 14 (1) (b) to give him reasonable security for all monies which may become due to him in respect of the utilizati

17A PART VI PROVISIONS RELATING TO THE LICENSEE, SUPPLY OF GAS, ENTRY INTO LAND, ETC.-17A. Return of security with interest.

Notwithstanding any other provisions in this Act, a licensee shall pay to a person subject to such conditions and at such rates as may be prescribed, a sum equivalent to the annual interest on the security given under section 17.

[Am. Act A1126:s.14]


18 PART VI PROVISIONS RELATING TO THE LICENSEE, SUPPLY OF GAS, ENTRY INTO LAND, ETC.-18. Deleted.

(Deleted by Act A1515:s.20)


19 PART VI PROVISIONS RELATING TO THE LICENSEE, SUPPLY OF GAS, ENTRY INTO LAND, ETC.-19. Charge for supply of gas to be ascertained by appropriate meter.

(1) Where any person is to be charged:

(a) as a consumer who receives gas from a shipping or retail licensee;

(b) as a private gas licensee who receives gas from a shipping licensee;

(c) as a retail licensee who receives gas from a shipping licensee; or

(d) for his utilization of the facility of a regasification, transportation or distribution licensee,

by reference to the quantity of gas involved, the gas shall be delivered through, and its quantity shall be ascertained by an appropriate meter including a pre-paid meter, automated metering infrastructure or by telemetering.

(2) The meter, to be provided by the regasification, transportation, distribution or retail licensee whether by way of sale, hire or loan, shall be of the type approved by the Commission or its appointed body or by any other relevant government body for that purpose and co

20 PART VI PROVISIONS RELATING TO THE LICENSEE, SUPPLY OF GAS, ENTRY INTO LAND, ETC.-20. Reduction or cessation of retail of gas: liability.

[Shoulder note Am. Act A1515:s.22]

(1) Any retail licensee may cease the supply of gas or reduce, as he may think fit, the quantity of gas supplied to any consumer under the circumstances stated in section 15.

[(1) Am. Act A1515:s.22]

(2) Without prejudice to any agreement, where the quantity of gas has been reduced as aforesaid:

(a) no liability shall be incurred by the licensee in respect of any loss or damage caused by the reduction; and

(b) in appropriate cases, an abatement in the charges for the supply of gas shall be made in proportion to the reduction made.

(3) Any retail licensee shall not be liable for any damage to any person or property for any cessation or reduction of the supply of gas:

[(3) Am. Act A1515:s.22]

(a) which is directly caused by

21 PART VI PROVISIONS RELATING TO THE LICENSEE, SUPPLY OF GAS, ENTRY INTO LAND, ETC.-21. Disconnection of delivery or supply of gas.

[Shoulder note Am. Act A1515:s.23]

(1) Where a licensee has reasonable grounds to believe that in respect of any premises an offence under subsection 30(5), 30(6), 30(7) or 30(9) has been committed, the licensee or any person duly authorised by the licensee may, upon giving not less than twenty-four hours' notice, in such form as may be prescribed, discontinue the delivery or supply of gas to such premises.

[(1) Am. Act A1515:s.23]

(2) Upon disconnection under subsection (1), the licensee shall immediately inform the Commission of the disconnection.

[Am. Act A1126:s.18]

(3) Upon receiving the information under subsection (2) the Commission shall immediately direct an authorised officer to inspect such premises and as soon as practicable after such inspection, the Commission shall form an opinion:

[Am. Act A1126:s.18]

22 PART VI PROVISIONS RELATING TO THE LICENSEE, SUPPLY OF GAS, ENTRY INTO LAND, ETC.-22. Liabilities unaffected.

Except as provided in section 20, nothing contained in this Act shall operate to relieve any licensee from any civil or criminal liability arising under this Act.


23 PART VI PROVISIONS RELATING TO THE LICENSEE, SUPPLY OF GAS, ENTRY INTO LAND, ETC.-23. Power to enter on and examine non-State land.

[Shoulder note Am. Act A1515:s.24]

(1) Whenever it appears to the licensee that it will be necessary for him to exercise the powers conferred upon him by this Act in respect of any land other than State land for the purpose of constructing any pipeline or piping system or part thereof, the licensee or any person authorised by him may, after giving not less than twenty-four hours' notice to the occupier thereof, if any, enter upon the land, survey and take levels and do any other acts necessary to ascertain the suitability of the land, in so far as the same may be possible without causing damage or disturbance.

[(1) Gen. Am. Act A1515:s.3]

(2) Nothing herein contained shall be deemed to authorise any person to cut down or clear away any vegetation or any fence or other erection or to enter into any building or upon any enclosure attached to any building.

(3) In the case of res

24 PART VI PROVISIONS RELATING TO THE LICENSEE, SUPPLY OF GAS, ENTRY INTO LAND, ETC.-24. Power to enter on non-State land for purposes of construction.

[Shoulder note Am. Act A1515:s.25]

(1) Whenever it is necessary for the purpose of installing any:

(a) pipeline for the regasification or transportation of gas; or

(b) pipeline for the distribution of gas or piping system,

a licensee may lay, place or carry on, under or over any land, other than State land, such pipeline or piping system as may be necessary or proper for the purposes of the licence, and may take such other action as may be necessary to render such pipeline or piping system safe and efficient, paying full compensation in accordance with section 28 to all persons interested for any disturbance, damage or disability that may be caused thereby and such compensation may include an annual payment for land used for the purpose of such pipeline or piping system. and

[(1) Subs. Act A1515:s.25]

(1A) For the p

25 PART VI PROVISIONS RELATING TO THE LICENSEE, SUPPLY OF GAS, ENTRY INTO LAND, ETC.-25. Maintenance, repair and upgrading of pipeline or piping system.

[Gen. Am. Act A1515:s.3]

(1) Whenever it is necessary for the purpose of maintaining, repairing or upgrading any:

(a) pipeline for the regasification or transportation of gas; or

(b) pipeline for the distribution of gas or piping system,

the licensee, or any person authorized by him in that behalf, may at all reasonable times enter upon any land and may carry out all necessary repairs, and may, in the course thereof, remove vegetation and do all other things necessary to the said purpose, causing as little damage as possible and paying full compensation in accordance with section 28 to all persons interested for any damage that may be caused thereby for which compensation has not already been assessed under section 24.

[Renumbering, Subs. Act A1515:s.26]

(2) For the purposes of paragraph (1) (a) , the regasif

26 PART VI PROVISIONS RELATING TO THE LICENSEE, SUPPLY OF GAS, ENTRY INTO LAND, ETC.-26. Removal or alteration of pipeline or piping system.

[Gen. Am. Act A1515:s.3]

(1) Where any:

(a) pipeline for the regasification or transportation of gas has been installed on land under paragraph 24(1) (a) ; or

(b) pipeline for the distribution of gas or piping system has been installed on land under paragraph 24(1) (b) ,

and if any of the persons mentioned in subsection 24(3) desires to use the land in such a manner as to render it necessary or convenient that the pipeline or piping system referred to in paragraphs 24(1) (a) and (b) should be removed to another part of the land, or to land at a higher or lower level, or be altered in form, he may require the licensee to remove or alter such pipeline or piping system accordingly.

[(1) Subs. Act A1515:s.27]

(1A) For the purposes of paragraph (1) (a) , the regasification or transpo

27 PART VI PROVISIONS RELATING TO THE LICENSEE, SUPPLY OF GAS, ENTRY INTO LAND, ETC.-27. Wayleave agreements.

(1) Nothing in section 24 or 26 shall affect the right of a regasification, transportation, distribution or retail licensee to enter into an agreement, commonly known as a wayleave agreement, with the owner or occupier of any land for the purpose of constructing a pipeline or piping system.

[(1) Gen. Am. Act A1515:s.3; Am. Act A1515:s.28]

(2) Notwithstanding any written law relating to land, the Registrar, upon the production to him of the original and the deposit with him of a certified copy of any such wayleave agreement as is referred to in subsection (1), shall cause to be made on the register document of title relating to the land affected by the wayleave agreement a note of the existence of the wayleave agreement.

(3) Where a wayleave agreement relates to land which is a holding included in the Interim Register:

(a) ubsection (2) shall apply as if "Commissioner" and "app

28 PART VI PROVISIONS RELATING TO THE LICENSEE, SUPPLY OF GAS, ENTRY INTO LAND, ETC.-28. Compensation.

(1) The amount of compensation, if any, payable under section 23, 24 or 25 shall be assessed by the District Land Administrator after such inquiry as he shall deem sufficient. The assessment shall be substantially in the form set out in the Third Schedule:

Provided that no compensation shall be payable by the regasification, transportation, distribution or retail licensee in respect of any tree within fifty feet of the centre line of any road constructed or maintained by the State Government or by any local authority unless it is proved that the tree was in existence prior to the construction of the road.

[Proviso Am. Act A1515:s.29]

(2) Any person aggrieved with the District Land Administrator's assessment may within twenty-one days after the assessment appeal to the State Authority whose decision shall be final.


28A PART VIA GENERAL COMPETITION PRACTICES Chapter 1 Interpretation and application-28A. Interpretation.

For the purposes of this Part:

"commercial activity" means any activity of a commercial nature within the scope of the Act but does not include:

(a) any activity, directly or indirectly in the exercise of governmental authority;

(b) any activity conducted based on the principle of solidarity; and

(c) any purchase of gas or services not for the purposes of offering gas or services as part of an economic activity;

"concerted practice" means any form of coordination between persons, including licensees, which knowingly substitutes practical co-operation between them for the risks of competition and includes any practice which involves direct or indirect contact or communication between persons, including licensees, the object or effect of which is either:

(a) to influence the conduct of one or more persons, including lic

28B PART VIA GENERAL COMPETITION PRACTICES Chapter 1 Interpretation and application-28B. Application of Part VIA.

Part VIA applies to any commercial activity, both within and outside Malaysia, which has an effect on competition in the market in Malaysia.

[Ins. Act A1515:s.30]


28C Chapter 2 Anti-competitive agreement-28C. Prohibited agreement.

(1) Any horizontal or vertical agreement which in the opinion of the Commission has the object or effect of significantly preventing, restricting or distorting competition in the market is prohibited.

(2) Without prejudice to the generality of subsection (1), a horizontal agreement between persons, including licensees, which has the object to:

(a) fix, directly or indirectly, a purchase or selling prices of gas or any other trading conditions of gas;

(b) limit or control:

(i) production;

(ii) market outlets or market access;

(iii) technical or technological development; or

(iv) investment in the gas industry;

(c) share markets or sources of gas supply; or

(d) perform an act of bid rigging,

is deemed to have the object significantly preventing, restricting, or distorting competition in

28D Chapter 2 Anti-competitive agreement-28D. Relief of liability.

Notwithstanding section 28C, a person, including a licensee, who is a party to an agreement may relieve its liability for the infringement of the prohibition under section 28C based on the following reasons:

(a) there are significant identifiable technological, efficiency or social benefits directly arising from the agreement;

(b) the benefits could not reasonably have been provided by the parties to the agreement without the agreement having the effect of preventing, restricting or distorting competition;

(c) the detrimental effect of the agreement on competition is proportionate to the benefits provided; and

(d) the agreement does not allow the persons, including licensees, concerned to eliminate competition completely in respect of a substantial part of the activities licensed under section 11.

[Ins. Act A1515:s.30]

28E Chapter 2 Anti-competitive agreement-28E. Individual exemption.

(1) A person, including a licensee, may apply to the Commission for an exemption with respect to a particular agreement from the prohibition under section 28C.

(2) The Commission may, by order published in the Gazette , grant the exemption if, in the opinion of the Commission, the agreement is one to which section 28D applies.

(3) An exemption granted under this section is referred to as an "individual exemption".

(4) The individual exemption granted by the Commission may be:

(a) subject to any condition or obligation as the Commission considers it appropriate to impose; and

(b) for a limited duration as specified in the order.

(5) An individual exemption may provide for it to have effect from a date earlier than that on which the order is made.

(6) If the Commission is satisfied that:

(a) there has been a material

28F Chapter 2 Anti-competitive agreement-28F. Block exemption.

(1) If agreements which fall within a particular category of agreements are, in the opinion of the Commission, likely to be agreements to which section 28D applies, the Commission may, by order published in the Gazette , grant an exemption to the particular category of agreements.

(2) An exemption granted under this section is referred to as a "block exemption".

(3) An agreement which falls within a category specified in a block exemption is exempt from the prohibition under section 28C.

(4) The Commission in granting the block exemption may impose any condition or obligation subject to which a block exemption shall have effect.

(5) A block exemption may provide that:

(a) if there is a breach of a condition imposed by the block exemption, the Commission may, by notice in writing, cancel the block exemption in respect of the agreement from the date of the breach;

(b)

28G Chapter 3 Abuse of dominant position-28G. Abuse of dominant position.

(1) Any conduct on the part of one or more persons, including licensees, which amounts to the abuse of a dominant position in the market is prohibited.

(2) Without prejudice to the generality of subsection (1), an abuse of dominant position may include:

(a) directly or indirectly imposes unfair purchase or selling price or other unfair trading condition on any party pertaining to the delivery of gas or utilization of facility in the market;

(b) limits or controls production, market access, technical or technological developments, or investments in the gas industry to the prejudice of persons, including licensees;

(c) applies different conditions to equivalent transactions with other trading parties which places the other trading parties at a competitive disadvantage; or

(d) makes the conclusion of agreements conditional upon acceptance by the other parties of oblig

28H Chapter 3 Abuse of dominant position-28H. Commission may issue directions to a person, including a licensee, in a dominant position.

The Commission may issue a direction to a person, including a licensee, in a dominant position in the market to cease a conduct which has, or may have, the effect of significantly preventing, restricting or distorting competition or which amounts to an abuse of its dominant position in the market.

[Ins. Act A1515:s.30]


28I Chapter 4 Market review-28I. Power to conduct market review.

(1) The Commission may, on its own initiative or upon the request of the Minister, conduct a review into the market in order to determine whether any feature or combination of features of the market prevents, restricts or distorts competition in the market.

(2) The market review includes a study into:

(a) the structure of the market concerned;

(b) the conduct of persons, including licensees, in the market;

(c) the conduct of suppliers and consumers to persons, including licensees, in the market; or

(d) any other relevant matters.

(3) Upon conclusion of the market review, the Commission may publish a report of its findings and recommendations and the report may be made available to the public.

[Ins. Act A1515:s.30]


28J Chapter 5 Decision by the Commission-28J. Interim measures.

(1) This section applies if the Commission has commenced but not completed an investigation under section 6.

(2) If the Commission has reasonable grounds to believe that any prohibition under section 28C or 28G has been infringed or is likely to be infringed and the Commission considers that it is necessary for the Commission to act under this section as a matter of urgency for the purpose of:

(a) preventing serious and irreparable damage, economic or otherwise, to a particular person or category of persons; or

(b) protecting the public interest,

the Commission may give such direction as the Commission considers to be appropriate and proportionate for that purpose in accordance with section 37C.

(3) A direction given under subsection (2) may include requiring or causing any person:

(a) to suspend the effect of, and desist from acting in ac

28K Chapter 5 Decision by the Commission-28K. Proposed decision by the Commission.

(1) If, after the completion of the investigation, the Commission proposes to make a decision to the effect that one of the prohibitions under section 28C or 28G has been or is being infringed, the Commission shall give written notice of its proposed decision to each person, including a licensee, that may be directly affected by the decision.

(2) The notice shall:

(a) set out the reasons for the Commission's proposed decision in sufficient detail to enable the person, including a licensee, to whom the notice is given to have a genuine and sufficient prospect of being able to comment on the proposed decision on an informed basis;

(b) set out any penalties or remedial action that the Commission proposes to apply; and

(c) inform each person, including a licensee, to whom the notice is given that the person, including a licensee, may, within such reasonable period as may be specified i

28L Chapter 5 Decision by the Commission-28L. Oral representation.

If a person, including a licensee, informs the Commission, within the period specified in the notice given under section 28K that he wishes to make an oral representation, the Commission shall, before taking any relevant decision:

(a) convene a session for the oral representation to be held at a date, time and place determined by the Commission; and

(b) give written notice of the date, time and place to:

(i) the person, including licensee, concerned;

(ii) any person who had lodged a complaint with the Commission concerning the practice that was the subject of the Commission's investigation; and

(iii) any other person whose presence at the session of the oral representation is considered necessary by the Commission.

[Ins. Act A1515:s.30]


28M Chapter 5 Decision by the Commission-28M. Conduct of hearings.

(1) Notwithstanding section 28L, the Commission may at any time conduct a hearing for the purpose of determining whether a person, including a licensee, has infringed or is infringing any prohibition under section 28C or 28G.

(2) If the Commission determines that a hearing is to be held, the Commission shall give at least fourteen days' notice in writing to the person, including a licensee, concerned and to other interested third parties:

(a) recording its decision to convene the hearing;

(b) specifying the date, time and place for the holding of the hearing; and

(c) stipulating the matters to be considered at the hearing.

(3) When the Commission decides to hold a hearing, the Commission shall also decide:

(a) whether to hold individual hearings with each of the person, including a licensee, and any other interested third parties

28N Chapter 5 Decision by the Commission-28N. Decision of Commission.

(1) Where the Commission has made a decision that there is no infringement of a prohibition under section 28C or 28G, the Commission shall, without delay, give notice of the decision to any person who is affected by the decision stating the facts on which the Commission bases the decision and the Commission's reason for making the decision.

(2) If the Commission decides that there is an infringement of a prohibition under section 28C or 28G, the Commission:

(a) shall require that the infringement to be ceased immediately;

(b) may specify steps which are required to be taken by the infringing person, including a licensee, which appear to the Commission to be appropriate for bringing the infringement to an end;

(c) may impose a financial penalty; or

(d) may give any other direction as the Commission deems appropriate.

(3) The Commission shall, w

28O Chapter 5 Decision by the Commission-28O. Leniency regime.

(1) There shall be a leniency regime, with a reduction of up to a maximum of one hundred per cent of any penalties which would otherwise have been imposed, which may be available in the cases of any person, including a licensee, which has:

(a) admitted its involvement in an infringement of any prohibition under subsection 28C(2); and

(b) provided information or other form of co-operation to the Commission which significantly assisted, or is likely to significantly assist, in the identification or investigation of any finding of an infringement of any prohibition by any other persons, including licensees.

(2) A leniency regime may permit different percentages of reductions to be available to a person, including a licensee, depending on:

(a) whether the person, including a licensee, was the first person to bring the suspected infringement to the attention o

28P Chapter 5 Decision by the Commission-28P. Enforcement of direction or decision of Commission.

(1) The Commission may bring proceedings before the High Court against any person who fails to comply with a direction given by the Commission under sections 28H, 28J or a decision under section 28N.

(2) If the High Court finds that the person referred to in subsection (1) has failed to comply with the direction or decision, the High Court shall make an order requiring the person to comply with the direction or decision.

(3) For the purposes of subsection (2), where the High Court finds that the failure to comply with the decision includes a failure to pay a penalty within the specified period, the High Court shall, in addition to ordering that person to pay the penalty, order the person to pay interest at the normal judgment rate running from the day following that on which the payment was due.

(4) Any breach of an order of the High Court made under this section shall be punishable as contempt of court.

28Q Chapter 5 Decision by the Commission-28Q. Power to accept undertaking.

(1) The Commission may, subject to the conditions that the Commission may impose, accept from a person, including a licensee, an undertaking to do or refrain from doing anything as the Commission considers appropriate.

(2) If the Commission accepts an undertaking under subsection (1), the Commission shall, in relation to an infringement, close the investigation without making any finding of infringement and shall not impose a penalty on the person, including a licensee.

(3) Any undertaking accepted by the Commission under this section shall be a document available for inspection by the public in a manner determined by the Commission.

(4) The provisions of any undertaking accepted by the Commission under this section shall be enforceable by the Commission as though those provisions had been set out in a decision given to the person, including a licensee, providing that undertaking under section 28N.

[Ins

28R Chapter 6 Gas Competition Appeal Tribunal-28R. Establishment and constitution of the Gas Competition Appeal Tribunal.

(1) A Gas Competition Appeal Tribunal is established which shall have exclusive jurisdiction to review any decision made by the Commission under sections 28J and 28N.

(2) The Gas Competition Appeal Tribunal shall consists of the following members:

(a) a President; and

(b) five other members appointed by the Minister.

(3) The Minister shall, upon nomination by the Chief Justice of the Federal Court, appoint a judge of the High Court to be the President of the Gas Competition Appeal Tribunal.

(4) The Minister shall appoint persons who, in his opinion, have relevant expertise in industry, commerce, economics, law, accountancy or consumer affairs to be members of the Gas Competition Appeal Tribunal.

(5) The Minister may consider proposals and recommendations by any Government agency or any other body having expertise in any matter referred to in subsection (4).


28S Chapter 6 Gas Competition Appeal Tribunal-28S. Allowances.

The President and members of the Gas Competition Appeal Tribunal appointed under section 28R may be paid:

(a) a daily sitting allowance during the sitting of the Gas Competition Appeal Tribunal;

(b) a lodging, travelling and subsistence allowance; and

(c) such fixed allowances or other allowances,

as the Minister may determine.

[Ins. Act A1515:s.30]


28T Chapter 6 Gas Competition Appeal Tribunal-28T. Resignation and revocation of appointment.

(1) The President or any other member of the Gas Competition Appeal Tribunal may resign his office by giving sixty days' written notice to the Minister.

(2) The Minister may, at any time, revoke the appointment of the President or any other member of the Gas Competition Appeal Tribunal if such President or member:

(a) is of unsound mind or otherwise incapable of performing his duties or managing his affairs;

(b) becomes bankrupt or insolvent;

(c) has been proved against him, or he has been convicted on, a charge in respect of:

(i) an offence involving fraud, dishonesty or moral turpitude;

(ii) an offence under any law relating to corruption; or

(iii) any other offence punishable with imprisonment (in itself only or in addition to or in lieu of a fine) for more than two years;

(d) is guilty of serious misconduct in

28U Chapter 6 Gas Competition Appeal Tribunal-28U. Vacation of office and new or temporary appointment.

(1) The office of the President or any other member of the Gas Competition Appeal Tribunal shall be vacated if:

(a) he dies;

(b) he resigns or otherwise vacates his office before the expiry of the term for which he is appointed; or

(c) his appointment is revoked under section 28T.

(2) The Minister shall appoint another person in accordance with section 28R to replace the President or any other member of the Gas Competition Appeal Tribunal during the vacancy in the office of the President or member of the Gas Competition Appeal Tribunal.

(3) The Minister may appoint temporarily another person in accordance with section 28R to act as the President or any other member of the Gas Competition Appeal Tribunal:

(a) during any period when the President or a member is absent from duty or from Malaysia; or

(b) if the Presid

28V Chapter 6 Gas Competition Appeal Tribunal-28V. Disclosure of interest.

(1) A member of the Gas Competition Appeal Tribunal shall disclose, as soon as practicable, to the President any interest, whether substantial or not, which may be in conflict with the member's duties as a member of the Gas Competition Appeal Tribunal in a particular matter.

(2) If the President is of the opinion that the member's interest is in conflict with the member's duties as a member of the Gas Competition Appeal Tribunal, the President shall inform all the parties to the matter of the conflict.

(3) If none of the parties to the matter objects to the conflict, the member may continue to execute duties as a member of the Gas Competition Appeal Tribunal in relation to that matter.

(4) If a party to the matter objects to the conflict, the member of the Gas Competition Appeal Tribunal shall not continue to execute his duties as a member of the Gas Competition Appeal Tribunal in relation to that matter.

(5) If the memb

28W Chapter 6 Gas Competition Appeal Tribunal-28W. Secretary to the Gas Competition Appeal Tribunal and other officers.

(1) The Minister shall appoint a Secretary to the Gas Competition Appeal Tribunal.

(2) The Minister may designate such number of public officers as the Minister thinks fit to assist the Secretary.

(3) For the purpose of this Act, the Secretary and the officers designated under subsection (2) shall be deemed to be officers of the Gas Competition Appeal Tribunal.

[Ins. Act A1515:s.30]


28X Chapter 6 Gas Competition Appeal Tribunal-28X. Appeal to the Gas Competition Appeal Tribunal.

(1) A person aggrieved or whose interest is affected by a decision of the Commission under sections 28J and 28N

may appeal to the Gas Competition Appeal Tribunal by filing a notice of appeal to the Gas Competition Appeal Tribunal.

(2) A notice of appeal shall be made in writing to the Gas Competition Appeal Tribunal within thirty days from the date of the decision of the Commission and the appellant shall give a copy of the notice to the Chief Executive Officer.

(3) The notice of appeal shall state in summary form the substance of the decision of the Commission appealed against, shall contain an address at which any notices or documents connected with the appeal may be served upon the appellant or upon his advocate and shall be signed by the appellant or his advocate.

[Ins. Act A1515:s.30]


28Y Chapter 6 Gas Competition Appeal Tribunal-28Y. Record of decision of the Commission.

(1) The aggrieved person or the person whose interest is affected referred to in section 28X may, on his own initiative, request in writing to the Commission for a statement of the grounds of the decision of the Commission.

(2) Subject to subsection (3), the Commission shall, upon receiving the written request under subsection (1), provide a copy of the statement of its grounds to the aggrieved person or the person whose interest is affected upon payment of the prescribed fee.

(3) When a notice of appeal has been filed with the Gas Competition Appeal Tribunal under section 28X, the Commission shall, if the Commission had not already written its grounds for its decision on the matter stated in the notice as requested by the appellant under subsection (1), record in writing its grounds for its decision and the written grounds shall form part of the record of the proceedings before the Gas Competition Appeal Tribunal.


28Z Chapter 6 Gas Competition Appeal Tribunal-28Z. Stay of decision pending appeal.

(1) Pending the decision of an appeal by the Gas Competition Appeal Tribunal, a decision of the Commission shall be valid, binding and enforceable except where a stay of the decision of the Commission has been applied for by the appellant and granted by the Gas Competition Appeal Tribunal.

(2) An application for a stay of decision shall be in writing and shall be made to the Gas Competition Appeal Tribunal on or after the day on which the notice of appeal has been filed with the Gas Competition Appeal Tribunal.

[Ins. Act A1515:s.30]


28AA Chapter 6 Gas Competition Appeal Tribunal-28AA. Composition and sitting of the Gas Competition Appeal Tribunal.

(1) Every proceeding of the Gas Competition Appeal Tribunal shall be heard and disposed of by three members of the Gas Competition Appeal Tribunal as the President may in any particular case determine.

(2) The Gas Competition Appeal Tribunal shall sit on such dates and at such places as the President may from time to time determine.

(3) The President may cancel or postpone any sitting of the Gas Competition Appeal Tribunal and may change the place of the sittings which has been determined under subsection (2).

(4) Any change to the date or place of any sitting of the Gas Competition Appeal Tribunal shall be informed to the parties to the appeal by a written notice.

[Ins. Act A1515:s.30]


28AB Chapter 6 Gas Competition Appeal Tribunal-28AB. Procedure and powers of the Gas Competition Appeal Tribunal.

(1) The Gas Competition Appeal Tribunal shall decide its own procedure.

(2) The Gas Competition Appeal Tribunal shall have the power:

(a) to summon parties to the proceedings or any other person to attend before it to give evidence in respect of an appeal;

(b) to procure and receive evidence on oath or affirmation, whether oral or documentary, and examine all such persons as witnesses as the Gas Competition Appeal Tribunal considers necessary;

(c) where a person is so summoned, to require the production of any information, document or other thing in his possession or under his control which the Gas Competition Appeal Tribunal considers necessary for the purposes of the appeal;

(d) to administer any oath, affirmation or statutory declaration, as the case may require;

(e) where a person is so summoned, to allow the payment for any reasonable expenses

28AC Chapter 6 Gas Competition Appeal Tribunal-28AC. Decision of the Gas Competition Appeal Tribunal.

(1) The decision of the Gas Competition Appeal Tribunal, on any matter, shall be decided on a majority of the members.

(2) The Gas Competition Appeal Tribunal may confirm or set aside the decision which is the subject of the appeal, or any part of it, and may:

(a) remit the matter to the Commission;

(b) impose or revoke, or vary the amount of, a financial penalty;

(c) give such direction, or take such other step as the Commission could itself have given or taken; or

(d) make any other decision which the Commission could itself have made.

(3) A decision of the Gas Competition Appeal Tribunal is final and binding on the parties to the appeal.

[Ins. Act A1515:s.30]


28AD Chapter 6 Gas Competition Appeal Tribunal-28AD. Enforcement of decision of the Gas Competition Appeal Tribunal.

A decision given by the Gas Competition Appeal Tribunal may, by leave of the High Court, be enforced in the same manner as a judgment or order to the same effect, and where leave is so given, judgment may be entered in terms of the decision.

[Ins. Act A1515:s.30]


28AE Chapter 7 General-28AE. Rights of private action.

(1) Any person who suffers loss or damage directly as a result of an infringement of any prohibition under section 28C or 28G shall have a right of action for relief in civil proceedings in a court under this section against any person, including a licensee, which is or which has at the material time been a party to such infringement.

(2) The action may be brought by any person referred to in subsection (1) regardless of whether such person dealt directly or indirectly with the person, including a licensee.

Regulations pertaining to competition matters under

[Ins. Act A1515:s.30]


28AF Chapter 7 General-28AF. Part VIA made by Minister.

(1) The Minister may make such regulations as may be necessary or expedient for:

(a) giving full effect to the provisions of Part VIA;

(b) carrying out or achieving the objects and purposes of Part VIA; and

(c) providing for any supplemental, incidental, or consequential matters in relation to Part VIA.

(2) The Minister may, before making such regulations:

(a) publish a notice of his intention to make the proposed regulations;

(b) give at least thirty days from the date of the notice to allow any submission to be made by members of the public in relation to the proposed regulations; and

(c) give due consideration to any submission made.".

[Ins. Act A1515:s.30]


29 PART VII INQUIRY-29. Procedure in inquiry.

(1) Where a dispute arises between the licensee and the consumer with respect to matters falling under sections 13, 14 to 21 or between licensees on matters other than that pertaining to Part VIA, the dispute may be referred to the Commission.

[(1) Am. Act A1126:s.19; Subs. Act A1515:s.31]

(2) The Commission shall:

[Am. Act A1126:s.19]

(a) determine the dispute and make an order accordingly or, where the dispute is a contractual dispute under any terms of any agreement, may decide that it be determined according to any provision for determination of dispute under the agreement or be determined by the court accordingly; or

(b) determine that, with the approval of the Minister, a committee of inquiry be formed to inquiry into the dispute.

(2A) The practice and procedure to be followed in the determination of any dispu

30 PART VIII OFFENCES AND PENALTIES-30. Offences.

(1) Any person who, in contravention of section 11, carries out any activity of retail or use of gas through a piping system without any licence commits an offence and shall, on conviction, be liable to a fine not exceeding one hundred thousand ringgit, or to imprisonment for a term not exceeding three years or to both and to a further fine not exceeding one thousand ringgit for every day or part of a day during which the offence continues after conviction, and any piping system or part thereof used or intended to be used in the commission of the offence shall be liable to forfeiture.

[(1) Gen. Am. Act A1515:s.3; Am. Act A1515:s.32]

(1A) Any person who, in contravention of section 11, carries out any activity of import into regasification terminal, regasification, shipping, transportation or distribution of gas through pipelines without any licence commits an offence and shall, on conviction, be liable to a fine n

30A PART VIII OFFENCES AND PENALTIES-30A. Tipping off.

(1) Any person who:

(a) knows or has reasonable grounds to suspect that an authorized officer is acting, or is proposing to act, in connection with an investigation which is being, or is about to be, conducted under or for the purposes of this Part and discloses to any other person information or any other matter which is likely to prejudice that investigation or proposed investigation; or

(b) knows or has reasonable grounds to suspect that a disclosure has been made to an authorized officer under this Act and discloses to any other person information or any other matter which is likely to prejudice any investigation which might be conducted following the disclosure,

commits an offence and shall, on conviction, be liable:

(i) if such person is a body corporate, to a fine not exceeding one million ringgit, and for a second or subsequent offence, to a fine not excee

30B PART VIII OFFENCES AND PENALTIES-30B. Threat and reprisal.

(1) No person shall:

(a) coerce or attempt to coerce any person to refrain from doing any act referred to in subsection (3); or

(b) subject any person to any commercial or other disadvantage as a reprisal against the person for doing any act referred to in subsection (3).

(2) For the purposes of and without prejudice to the generality of paragraph (1) (b) , the commercial or other disadvantage may include a threat of late payment of amounts properly due to the person, the unreasonable bringing or conduct of litigation against the person, the cancellation of orders with the person, or the diversion of business from, or refusal to trade with, the person.

(3) The acts referred to in subsection (1) are as follows:

(a) making a complaint to the Commission; and

(b) co-operating with, or offering or agreeing to co-operate with, th

30C PART VIII OFFENCES AND PENALTIES-30C. Confidentiality.

(1) Any person who discloses or makes use of any confidential information with respect to a particular person, including a licensee, or the affairs of an individual obtained by virtue of any provision of this Act commits an offence and shall, on conviction, be liable:

(a) if such person is a body corporate, to a fine not exceeding one million ringgit, and for a second or subsequent offence, to a fine not exceeding five million ringgit; or

(b) if such person is not a body corporate, to a fine not exceeding five hundred thousand ringgit or to imprisonment for a term not exceeding five years or to both, and for a second or subsequent offence, to a fine not exceeding one million ringgit or to imprisonment for a term not exceeding five years or to both.

(2) Nothing in subsection (1) shall operate to prevent the disclosure of information where:

(a) the disclosu

30D PART VIII OFFENCES AND PENALTIES-30D. Order for payment of costs of prosecution and compensation.

(1) The court before which a person is convicted of any offence under this Act may, in its discretion, make either or both of the following orders against that person, namely:

(a) an order for the payment by that person of the costs of his prosecution or any part thereof as may be agreed by the Public Prosecutor;

(b) an order for the payment by that person of a sum to be fixed by the court as compensation to any person who is the victim of the offence committed by that person in respect of the injury to his person or character, or loss of his income or property, as a result of the offence committed.

(2) Where a person who is the victim of the offence is deceased, the order of compensation shall be made to a representative of the deceased person.

(3) The court shall, in making an order under paragraph (1) (b) , take into consideration the following factors:

30E PART VIII OFFENCES AND PENALTIES-30E. Provisions as to money payable as costs or compensation.

(1) Subject to the provisions of this Act where any person is, under this Act, for any reason whatsoever, ordered to pay any sum of money by way of costs or compensation, the court making the order may in its discretion do all or any of the following things, namely:

(a) allow time for the payment of that sum;

(b) direct payment of that sum to be made not exceeding twelve monthly instalments;

(c) issue a warrant for the levy of that sum by distress and sale of any property belonging to that person;

(d) direct that in default of payment or of a sufficient distress to satisfy such sum, that person shall suffer imprisonment for a certain term, which imprisonment shall be in excess of any other imprisonment to which he may be sentenced or to which he may be liable under a commutation of sentence:

Provided that where time is not allowed for the payment of that sum an ord

31 PART VIII OFFENCES AND PENALTIES-31. General penalty.

Any person who by any act or omission contravenes any provision under this Act or any regulation made thereunder commits an offence and if no penalty is expressly provided shall, on conviction, be liable to a fine not exceeding one hundred thousand ringgit and, in the case of a continuing offence, to a fine not exceeding two thousand ringgit for every day or part of a day during which the offence continues after conviction.

[Gen. Am. Act A1515:s.3; Am. Act A1515:s.34]


32 PART VIII OFFENCES AND PENALTIES-32. Offences committed by body corporate: officers deemed to be guilty.

(1) Where a person convicted in respect of any offence under this Act or any regulation made thereunder is a body corporate, it shall only be liable to the imposition of any fine provided therein.

(2) Where a person charged with an offence under this Act or any regulation made thereunder is a body corporate, every person who at the time of the commission of the offence is a director or officer of the body corporate may be charged jointly in the same proceedings with the body corporate, and where the body corporate is convicted of the offence charged, every such director or officer shall be deemed to be guilty of that offence unless he proves that the offence was committed without his knowledge or that he took reasonable precautions to prevent its commission.

(3) Any person who would be liable under this Act or any regulation made thereunder to any penalty for anything done or omitted if the thing had been done or omitted by him personal

32A PART VIII OFFENCES AND PENALTIES-32A. Offence of attempt and abetment.

(1) Where any person:

(a) aids, abets, assists, incites or induces any other person to make or makes on behalf of another person an incorrect return, account, statement or declaration or to commit any offence punishable under this Act; or

(b) attempts to make or to make on behalf of another person an incorrect return, account, statement or declaration or to commit any offence punishable under this Act,

that person commits an offence and shall, on conviction, be punishable with the punishment provided for such offence under this Act provided that any term of imprisonment imposed shall not exceed one-half of the longest term provided for the offence.

[32A. Ins. Act A1515:s.35]


33 PART VIII OFFENCES AND PENALTIES-33. Onus of proof.

In any prosecution for an offence under section 30 proof of:

(a) the existence of artificial means which, either alone or in conjunction with additional artificial means not found, could be used for altering, or facilitating the alteration, of the index of any meter or instrument used for registering the quantity of gas supplied;

(b) the existence of artificial means which, either alone or in conjunction with additional artificial means not found, would prevent, or facilitate the prevention of, any meter or instrument from duly registering the quantity of gas supplied, or would facilitate the dishonest abstraction, consumption, or use of gas; or

(c) (i) the fitting of any artificial, mechanical or any other part or connection to;

(ii) the absence or removal of any part or connection from; or

(iii) the interference with any part or connection of,

34 PART VIII OFFENCES AND PENALTIES-34. Compounding.

(1) The Minister may, by order in the Gazette , prescribe any offence under this Act or any regulation made there under as an offence which may be compounded.

(2) The Chief Executive Officer may, with the consent in writing of the Public Prosecutor, compound any offence prescribed under subsection (1) by collecting from the person reasonably suspected of having committed the offence a sum of money not exceeding fifty per cent of the amount of the maximum fine for that offence.

[(2) Am. Act A1126:s.21; Am. Act A1515:s.36]

(3) All sums of moneys received by the Commission under this section shall be aid into and form part of the Consolidated Fund.

[Ins. Act 1126]


34A PART VIII OFFENCES AND PENALTIES-34A. Register.

(1) The Commission shall maintain a register in both non-electronic and electronic form of all matters which are required to be registered under this Act and under any of its subsidiary legislation.

(2) Any person may on payment of any prescribed fee-

(a) inspect the register; and

(b) make a copy of, or take extracts from, the register.

(3) If a person requests that a copy be provided in an electronic form, the Commission may provide the relevant information-

(a) on a data processing device; or

(b) by way of electronic transmission.".


35 PART IX GENERAL-35. Competent person.

Unless otherwise exempted, no work in respect of installing, constructing, maintaining, repairing or operating any gas distribution pipeline or piping system or part thereof shall be carried out except by or under the supervision of and certified by a competent person.

[Gen. Am. Act A1515:s.3; Am. Act A1515:s.38]


35A PART IX GENERAL-35A. Audit of licensee, etc.

(1) The Commission may:

(a) carry out or cause to be carried out audit of any licensee, institution, manufacturer or importer, gas contractor or any other person as determined by the Commission on any licensed activity, any information furnished to the Commission or on any other matters as directed by the Commission;

(b) require a licensee to appoint, at their own cost, an independent expert, with qualifications as may be stated by the Commission to review or audit on any licensed activity, any information which a licensee furnishes to the Commission or on any other matters as directed by the Commission.

(2) For the purpose of subsection (1), the review or audit shall be carried out in accordance with any codes, guidelines, directions issued under this Act, or as may otherwise be determined by the Commission.

(3) A licensee, institution, manufacturer or importer, gas contracto

36 PART IX GENERAL-36. Serious accidents to be reported.

(1) Whenever any accident or fire causing or resulting in loss of life or hurt to any person or serious damage to property has occurred in connection with any distribution pipeline or retail or use of gas through piping system or part thereof, the consumer or the licensee, as the case may be, shall report the accident or fire to the Commission by the quickest means available, and subsequently with the least possible delay shall report in writing the facts of the matter so far as they are known to them respectively.

[(1) Am. Act A1126:s.22; Am. Act A1515:s.40]

(2) Any person who, without lawful excuse, contravenes or fails to comply with subsection (1) commits an offence.

[(2) Gen. Am. Act A1515:s.3]


37 PART IX GENERAL-37. Protection of Commission and authorised officers.

No action or prosecution shall be brought, instituted or maintained in any court against the Commission or the officers duly appointed or authorised to act under this Act, the President, members, Secretary, officers of the Gas Competition Appeal Tribunal or any person authorized to act for and on behalf of the Gas Competition Appeal Tribunal in respect of anything done or omitted to be done by him in good faith in the execution or purported execution of his functions, powers and duties under this Act or any regulations made thereunder.

[Am. Act A1126:s.23; Am. Act A1515:s.41]


37A PART IX GENERAL-37A. Public Authorities Protection Act 1948.

The Public Authorities Protection Act 1948 [Act 198] shall apply to any action, suit, prosecution or proceedings against the Commission, the Chairman, Chief Executive Officer, any member, officer, servant or agent of the Commission, the President, any member, the Secretary, officer, servant or agent of the Gas Competition Appeal Tribunal in respect of any act, neglect or default done or committed or any omission by it or him in good faith, in such capacity.

[Ins. Act A1515:s.42]


37B PART IX GENERAL-37B. Development of codes by Commission and compliance of codes.

(1) The Commission may, with the approval of the Minister, develop and issue codes relating to the use of regasification terminal, transmission or distribution pipelines together with the approval of any access arrangements, or for the retail or use of gas or for the metering of gas and in respect of safety in the distribution, retail or use of gas.

(2) The Commission may develop and issue such additional codes as the Commission deems fit and expedient or as the Minister may direct, as the case may be.

(3) All codes developed and issued under this section shall only be effective upon registration by the Commission.

(4) All licensees and any other parties who have entered into any agreement shall comply with the codes.

(5) Unless otherwise determined by the Commission, in ensuring reliability, safety and security of the gas delivery system, the codes issued under this section shall take precedence over any agreement that

37C PART IX GENERAL-37C. Guidelines or directions by Commission.

(1) The Commission may issue guidelines or directions on any matter as provided under this Act or as may be expedient or necessary for the better carrying out of the provisions of this Act.

(2) Without prejudice to the generality of subsection (1), the Commission may issue and publish guidelines on the economic and legal analysis to be used in determining cases related to competition including the principles to be used in determining any penalty or remedy imposed under Part VIA of this Act.

(3) The Commission may issue directions in writing to any licensee, competent person or any person on the compliance or non-compliance of this Act or its subsidiary legislation, conditions of licences issued, including the remedying of a breach of a licence condition or on any other matter requiring the making of a direction or specifically to be made the subject of a direction in accordance with such procedures as may be prescribed.

(4) The

37D PART IX GENERAL-37D. Modification, variation, review or revocation of code, guideline or direction by Commission.

(1) The Commission may modify, vary, review or revoke any code, guideline or direction issued under this Act.

(2) The procedures set out in subsections 37B(2), (3), (4) and (5) shall apply in respect of any modification, variation, review or revocation of the codes, guidelines or directions.

[Ins. Act A1515:s.42]


37E PART IX GENERAL-37E. Power of the Commission to obtain information.

(1) The Commission may by notice require any person to furnish within a reasonable period specified in the notice, all information and documents relating to such matters as may be reasonably be required by the Commission to carry out its functions or duties under this Act, which are within the knowledge of that person or in his custody or under his control.

(2) Any person who fails without any reasonable excuse to do anything required of him by notice under subsection (1) commits an offence.

(3) Any person who-

(a) intentionally alters, suppresses or destroys any information or documents which he has been required by any notice under subsection (1) to furnish; or

(b) in furnishing any documents required by any notice under subsection (1), makes any statement which he knows to be false in a material matter or recklessly make such a statement,

commits an offence and shal

37F PART IX GENERAL-37F. Disclosure of information obtained.

(1) This section applies to:

(a) any information or document given by any person to the Commission under this Act; and

(b) such information or document given whereby the person giving it notifies the Commission in writing that it is of a confidential or commercially sensitive nature.

(2) The Commission shall not disclose to any person the information or the contents of a document to which this section applies unless-

(a) the Commission is of the opinion that-

(i) the disclosure of the information or the contents of the document would not cause detriment to the person supplying it or to any other person who is aware of the information or document; or

(ii) although the disclosure of the information or the contents of the document would cause detriment to the person supplying it or to any other person who is aware of the informat

37G PART IX GENERAL-37G. Licensees' infrastructure information security.

(1) Any licensee as directed by the Commission shall be responsible for the preservation of confidentiality, integrity and availability of the licensees' information, information systems and supporting network infrastructure pertaining to its licensed activity, duties and other matters as provided under this Act.

(2) The licensee shall-

(a) take the necessary measures, establish and implement standards and employ the relevant information security controls to prevent, avoid, remedy, recover or restore its information, document, instrument or records stored in its computers and for its operational system by its computers from any risk of-

(i) threat or unauthorized access; and

(ii) intrusion or removal;

(b) take necessary measures to ensure the resiliency of its supporting network infrastructure to minimise business impact against various threats to its lice

38 PART IX GENERAL-38. Special powers in emergency.

(1) The Yang di-Pertuan Agong may, on the occurrence of any industrial unrest, strike, lock-out or any other event which gives rise to an emergency, or in the interest of public safety, authorise the Commission to:

[Am. Act 1126 - Prior text read - "(1) The Yang di-Pertuan Agong may, on the occurrence of any industrial unrest, strike, lock-out or any other event which gives rise to an emergency, or in the interest of public safety, authorise the Director General to-"]

(a) suspend the licence of any licensee, take temporary possession of any pipeline or installation of such licensee and operate it in such manner as the Commission deems fit; or

[Am. Act 1126 - Prior text read - "(a) suspend the licence of any licensee, take temporary possession of any pipeline or installation of such licensee and operate it in such manner as he deems fit; or"]

(b)

39 PART X POWER TO MAKE REGULATIONS-39. Power to make regulations.

The Minister may make regulations in respect of any matter which may be prescribed under this Act and in particular:

(a) the procedures for the Commission in the exercise of its functions, duties and powers under this Act;

[Subs. Act A1126:s.25]

(b) the limits of variation of the quality of gas in the gas delivery system and pressure of the gas delivered involving its distribution, retail or use of gas;

[(b) Subs. Act A1515:s.43]

(c) the management of any pipeline or piping system under section 11;

[(c) Gen. Am. Act A1515:s.3]

(d) the method by which gas may be stored for purposes of distribution through pipelines;

(e) the fees to be paid for licences which are required to be prescribed under this Act;

(f) the measures to be taken and the regulatio

40 PART XI MISCELLANEOUS-40. Certain sections of Act not applicable to factories.

In this Act, sections 5, 35 and 36 and matters relating to paragraphs 39(c), 39(d), 39(f), 39(i), 39(j), 39(m) and 39(n) shall not apply to the delivery of gas through pipelines within factories as defined under the Factories and Machinery Act 1967 [Act 139].

[Am. Act A1515:s.44]


41 PART XI MISCELLANEOUS-41. Provisions to the contrary.

Notwithstanding any provisions to the contrary in the Petroleum Development Act 1974 [Act 144], Petroleum (Safety Measures) Act 1984 [Act 302] or Factories and Machinery Act 1967 relating to the delivery of gas through the distribution pipeline or the piping system, the provisions of this Act shall prevail to the extent of the inconsistency.

[Am. Act A1515:s.45]


42 PART XI MISCELLANEOUS-42. Exemption.

The Minister may, by notification in the Gazette , exempt:

(a) any person or class of persons from:

(i) being licensed under section 11 of this Act; and/or

(ii) the provisions of section 35 of this Act,

and may, by similar notification, cancel any exemption so notified.


43 PART XI MISCELLANEOUS-43. Transitional and saving provision.

(1) Subject to subsection (2) any person who immediately before the date of commencement of this Act was supplying gas through pipelines in any premises may continue to do so during the period of six months from the commencement of this Act:

Provided that during that period such person shall make an application for a licence or an exemption from having to hold a licence under this Act:

Provided further that if such person has already made the application then he may continue to supply gas through pipelines in the same premises until his application is finally disposed of, withdrawn, allowed or exempted under this Act.

(2) Any existing pipeline or installation or part thereof in the premises referred to in subsection (1) may continue to be used for such purpose until such time as when it is determined by the Commission or any public officer authorised by him that such use shall be discontinued.

[Am. Act

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