Electricity Act 1989

Type Public General Act
Publication 1989-07-27
Last updated 2026-07-30
State In force
Department Statute Law Database
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and may make different provision for meters of different descriptions or for meters used or intended to be used for different purposes.

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  • (1) If an authorised supplier supplies electricity through a meter which is used for ascertaining the quantity of electricity supplied and—
  • (a) is not of an approved pattern or construction or is not installed in an approved manner; or
  • (b) in the case of a meter to which paragraph 2(1)(b) above applies, is not certified under paragraph 5 below,

he shall be liable on summary conviction to a fine not exceeding level 3 on the standard scale.

  • (1A) Regulations under paragraph 1(1A) may provide for this paragraph not to apply in such circumstances as may be prescribed (being circumstances in which an authorised supplier is not required to supply electricity through an appropriate meter).
  • (2) Where the commission by any person of an offence under this paragraph is due to the act or default of some other person, that other person shall be guilty of the offence; and a person may be charged with and convicted of the offence by virtue of this sub-paragraph whether or not proceedings are taken against the first-mentioned person.
  • (3) In any proceedings in respect of an offence under this paragraph it shall be a defence for the person charged to prove that he took all reasonable steps and exercised all due diligence to avoid committing the offence.
  • (4) No proceedings shall be instituted in England and Wales in respect of an offence under this paragraph except by or on behalf of the Director.

Meter examiners

4
  • (1) The Director shall appoint competent and impartial persons as meter examiners for the purposes of this Schedule.
  • (2) There shall be paid out of money provided by Parliament to meter examiners employed in the civil service of the State such remuneration and such allowances as may be determined by the Director with the approval of the Treasury; and such pensions as may be so determined may be paid out of money provided by Parliament to or in respect of such examiners.
  • (2A) The Secretary of State may pay, out of money provided by Parliament, to meter examiners who are not employed in the civil service of the State or to any employer of such examiners—
  • (a) sums in connection with the performance by such examiners of functions conferred by or under this Schedule or electricity meter regulations (within the meaning of section 95 of the Energy Act 2008), and
  • (b) sums in respect of any pension payable to or in respect of such examiners.
  • (3) All fees payable in respect of the examination of meters by meter examiners employed in the civil service of the State shall be paid to the Director; and any sums received by him under this sub-paragraph shall be paid into the Consolidated Fund.

Certification of meters

5
  • (1) Subject to sub-paragraph (2) below, a meter may be certified—
  • (a) by a meter examiner appointed under paragraph 4 above; or
  • (b) by a person who is authorised to certify meters of that description by or under regulations made under this paragraph;

and in this paragraph “examiner” means a meter examiner or a person so authorised.

  • (2) No meter shall be certified unless the examiner is satisfied—
  • (a) that the meter is of an approved pattern or construction; and
  • (b) that the meter conforms to such standards (including standards framed by reference to margins of error) as may be prescribed;

and references in this Schedule to prescribed margins of error shall be construed accordingly.

  • (3) An examiner may certify any meter submitted to him, notwithstanding that he has not himself examined or tested it, if—
  • (a) the meter is submitted to him by . . . a person authorised by the Director for the purposes of this sub-paragraph;
  • (b) the meter is accompanied by a report stating that the meter has been examined and tested by the person submitting it and containing such other information as may be prescribed;
  • (c) the examiner considers that the report indicates that the meter is entitled to be certified;
  • (d) the meter is one of a number submitted at the same time by the same person,

and the examiner has himself examined and tested as many of those meters as he may consider sufficient to provide a reasonable test of all of them.

  • (4) Regulations under this paragraph may make different provision for meters of different descriptions or for meters used or intended to be used for different purposes and may include provision—
  • (a) for the termination of certification in the case of meters which no longer conform to the prescribed standards and in such other cases as may be prescribed;
  • (b) for determining the fees to be paid to meter examiners employed in the civil service of the State for examining, testing and certifying meters, and the persons by whom they are to be paid; and
  • (c) as to the procedure to be followed in examining, testing and certifying meters.
  • (5) Regulations under this paragraph above may also include provision—
  • (a) for determining the fee to be paid in respect of any authorisation under sub-paragraph (1) or (3) above;
  • (b) for imposing conditions on any such authorisation; and
  • (c) for withdrawing any such authorisation before the end of any period for which it is given if any of those conditions is not satisfied.

Apparatus for testing etc. of meters

6
  • (1) It shall be the duty of a person to whom this paragraph applies, that is to say, . . . a person authorised by the Director for the purposes of paragraph 5(3) above—
  • (a) to provide and maintain such apparatus for the examination, testing and regulation of meters, and such apparatus for the sealing and unsealing of meters, as may be specified by a direction of the Director;
  • (b) to use apparatus so provided and maintained to carry out such examination, testing and regulation of meters, or to seal or unseal meters in such circumstances, as may be so specified; and
  • (c) to keep such records and make such reports of things done in pursuance of paragraph (b) above as may be so specified.
  • (2) It shall also be the duty of a person to whom this paragraph applies to afford to meter examiners, acting in the exercise of functions conferred by or under this Schedule, all necessary facilities for the use of apparatus provided and maintained in pursuance of sub-paragraph (1) above.
  • (3) If the Director considers that any person to whom this paragraph applies has made satisfactory arrangements whereby apparatus provided by some other person is available for the examination, testing or regulation of the first mentioned person’s meters, the Director may direct that this paragraph shall not apply to that person to such extent as may be specified in the direction.
  • (4) Any two or more persons to whom this paragraph applies may with the approval of the Director enter and carry into effect arrangements whereby apparatus provided by one or more of the parties is to be available to all or any of them for the purposes of fulfilling their obligations under this paragraph.
  • (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Testing etc. of meters

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  • (1) It shall be the duty of a meter examiner employed in the civil service of the State, on being required to do so by any person and after giving notice to such persons as may be prescribed—
  • (a) to examine and test any meter used or intended to be used for ascertaining the quantity of electricity supplied to any premises;
  • (b) to determine whether it is of an approved pattern or construction and, if it is installed for use, whether it is installed in an approved manner;
  • (c) to determine whether it is in proper order for ascertaining the quantity of electricity supplied within the prescribed margins of error and, if it has been in use and there is a dispute as to whether it registered correctly at any time, to determine if possible whether it registered within those margins at that time; and
  • (d) to make a written report of his conclusions as to the matters mentioned in paragraphs (b) and (c) above.
  • (2) If a meter examiner determines that a meter is, or was at any time, operating outside the prescribed margins of error, he shall if possible give an opinion as to—
  • (a) any period for which the meter has or may have been so operating; and
  • (b) the accuracy (if any) with which it was or may have been operating for any such period.
  • (3) Regulations under this paragraph may make provision for determining the fees to be paid to meter examiners employed in the civil service of the State for examining and testing meters, and the persons by whom and the circumstances in which they are to be paid.
  • (4) In relation to a meter used or intended to be used in connection with an exempt supply, this paragraph shall have effect as if any reference to the prescribed margins of error included a reference to any margins of error agreed between the authorised supplier and the customer (in this Schedule referred to as “agreed margins of error”).
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  • (1) This paragraph applies where there is a genuine dispute as to the accuracy of a meter used for ascertaining the quantity of electricity supplied to any premises and notice of the dispute—
  • (a) is given to the authorised supplier by the customer, or to the customer by the authorised supplier; or
  • (b) is given to the authorised supplier and to the customer by any other person interested.
  • (2) Except with the approval of a meter examiner and, if he so requires, under his supervision, the meter shall not be removed or altered by the supplier or the customer until after the dispute is resolved by agreement or the meter is examined and tested under paragraph 7 above, whichever first occurs.
  • (3) If the supplier or the customer removes or alters the meter in contravention of sub-paragraph (2) above, he shall be liable on summary conviction to a fine not exceeding level 2 on the standard scale.

Presumptions and evidence

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  • (1) This paragraph applies to meters used for ascertaining the quantity of electricity supplied to any premises.
  • (2) The register of a meter to which this paragraph applies shall be admissible in any proceedings as evidence of the quantity of electricity supplied through it.
  • (3) Where electricity has been supplied for any period through such a meter which is of an approved pattern or construction and is installed in an approved manner, the register of the meter shall be presumed to have been registering for that period—
  • (a) within the prescribed margins of error; and
  • (b) in the case of a meter used in connection with an exempt supply, within any agreed margins of error,

unless the contrary is proved.

  • (4) Where a meter to which this paragraph applies has been operating for any period—
  • (a) within the prescribed margins of error; and
  • (b) in the case of a meter used in connection with an exempt supply, within any agreed margins of error,

the meter shall be conclusively presumed to have been correctly registering for that period the quantity of electricity supplied through it.

  • (5) The report of a meter examiner on any question relating to such a meter shall be admissible in evidence in any proceedings in which that question is raised; and any conclusions in the report as to the accuracy of the meter when it was tested shall be presumed to be correct unless the contrary is proved.

Meters to be kept in proper order

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  • (1) A customer of an authorised supplier shall at all times, at his own expense, keep any meter provided by him in proper order for correctly registering the quantity of electricity supplied to him; and in default of his doing so the supplier may discontinue the supply of electricity through that meter.
  • (2) An authorised supplier shall at all times, at his own expense, keep any meter provided by him to any customer in proper order for correctly registering the quantity of electricity supplied and, in the case of pre-payment meters, for operating properly on receipt of the necessary payment.
  • (2A) In relation to a dispute arising under this paragraph between an electricity supplier and a customer, section 23 of this Act applies, with the substitution for references to the Authority (and references treated as references to the Authority) of references to the Secretary of State.
  • (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  • (4) Sub-paragraphs (2) and (3) above are without prejudice to any remedy the supplier may have against the customer for failure to take proper care of the meter.

Interference with meters

11
  • (1) If any person intentionally or by culpable negligence—
  • (a) alters the register of any meter used for measuring the quantity of electricity supplied to any premises by an authorised supplier; or
  • (b) prevents any such meter from duly registering the quantity of electricity supplied,

he shall be liable on summary conviction to a fine not exceeding level 3 on the standard scale.

  • (2) Where any person is prosecuted for an offence under sub-paragraph (1) above, the possession by him of artificial means for causing an alteration of the register of the meter or, as the case may be, the prevention of the meter from duly registering shall, if the meter was in his custody or under his control, be prima facie evidence (or in Scotland sufficient evidence) that the alteration or prevention was intentionally caused by him.
  • (3) Where an offence under sub-paragraph (1) above has been committed, the supplier may discontinue the supply of electricity to the premises until the matter has been remedied and remove the meter in respect of which the offence was committed.
  • (4) Where an authorised supplier removes a meter under sub-paragraph (3) above, he shall keep it safely until the Director authorises him to destroy or otherwise dispose of it.

Special provision for pre-payment meters

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  • (1) A customer of an authorised supplier who takes his supply through a pre-payment meter shall be under a duty to take all reasonable precautions for the safekeeping of any money or tokens which are inserted into that meter.
  • (2) A pre-payment meter installed by an authorised supplier through which a customer of such a supplier takes his supply of electricity shall not be used to recover a sum unless—
  • (a) the sum is owed to an authorised supplier—
  • (i) in respect of the supply of electricity to the premises on which the meter is installed,
  • (ii) in respect of the provision of the meter, or
  • (iii) under a green deal plan (within the meaning of section 1 of the Energy Act 2011) in respect of the premises; or
  • (b) the recovery of the sum in that manner is permitted by both—
  • (i) regulations; and
  • (ii) an agreement falling within sub-paragraph (3) below between the customer and the person to whom the sum is owed.
  • (3) An agreement falls within this sub-paragraph if—
  • (a) the person to whom the sum is owed is a person who is authorised by regulations to enter into agreements falling within this sub-paragraph;
  • (b) the agreement permits that person to use the meter in question to recover such sums as may be specified in or determined under the agreement; and
  • (c) the agreement complies with the requirements specified for the purposes of this sub-paragraph by regulations.
  • (4) The sums that regulations under this paragraph may permit the recovery of through a pre-payment meter include—
  • (a) sums owed to a person other than an authorised supplier;
  • (b) sums owed in respect of premises other than the premises on which the meter is installed;
  • (c) sums owed in respect of matters other than the supply of electricity.
  • (5) Before making regulations under this paragraph the Authority must consult—
  • (a) Citizens Advice;
  • (aa) Consumer Scotland;
  • (b) all authorised suppliers;
  • (c) such other persons as the Authority considers appropriate.

Interpretation

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In this Schedule—

  • agreed margins of error” has the meaning given by paragraph 7(4) above;
  • approved” means approved by or under regulations made under paragraph 2 above;
  • . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  • exempt supply” has the meaning given in paragraph 1(10) above;
  • prescribed” means prescribed by regulations;
  • prescribed margins of error” has the meaning given by paragraph 5(2) above;
  • regulations” means— in paragraph 12, regulations made by the Authority with the consent of the Secretary of State, andin every other case, regulations made by the Secretary of State.

SCHEDULE 8 — Consents of the Secretary of State and the Scottish Ministers under Sections 36 and 37

1
  • (1) An application for a consent under section 36 or 37 of this Act shall be in writing and shall describe by reference to a map the land to which the application relates, that is, the land—
  • (a) on which the generating station is proposed to be constructed, extended or operated; or
  • (b) across which the electric line is proposed to be installed or kept installed.
  • (2) An application for a consent under section 37 of this Act shall also state—
  • (a) the length of the proposed line and its nominal voltage; and
  • (b) whether all necessary wayleaves have been agreed with owners and occupiers of land proposed to be crossed by the line,

and shall be supplemented, if the Secretary of State so directs, by such additional information as may be specified in the direction.

  • (3) The Secretary of State may by regulations make provision for determining the fees to be paid on applications for consent under section 36 or 37 of this Act, and the circumstances in which they are to be paid.
  • (4) Any sums received by the Secretary of State under this paragraph shall be paid into the Consolidated Fund.
1A
  • (1) The Secretary of State or the Scottish Ministers may by regulations make provision about the following matters in relation to applications to the Scottish Ministers for consent under section 36 or 37.
  • (2) The matters are—
  • (a) the steps a person must take before making an application;
  • (b) the information that must be included in an application;
  • (c) an acceptance stage, during which the Scottish Ministers must assess an applicant’s compliance with any requirements imposed by the regulations in order to decide whether or not to accept the application;
  • (d) fees to be paid to the Scottish Ministers—
  • (i) on application, or
  • (ii) for anything done by them in relation to a proposed application;
  • (e) requests by the Scottish Ministers for additional information to aid their decision whether or not to accept an application or to grant consent.
  • (3) The steps that may be the subject of provision made by virtue of sub-paragraph (2)(a) include—
  • (a) notifying prescribed persons of the proposed application,
  • (b) publicising the proposed application, and
  • (c) carrying out a consultation about the proposed application.

Objections by relevant planning authority

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  • (1) Where an application is made to the appropriate authority for a consent under section 36 or 37 of this Act, notice of the application shall be served on the relevant planning authority.
  • (2) In the case of an application made to the Secretary of State, where the relevant planning authority notify the Secretary of State that they object to the application and their objection is not withdrawn, the Secretary of State—
  • (a) shall cause a public inquiry to be held; and
  • (b) before determining whether to give his consent, shall consider the objection and the report of the person who held the inquiry.
  • (2A) In the case of an application made to the Scottish Ministers, where the relevant planning authority notify the Scottish Ministers that they object to the application and their objection is not withdrawn, the Scottish Ministers—
  • (a) must appoint a person (referred to in this Schedule as the “reporter”) to examine the application, and
  • (b) before determining whether to give their consent, must consider the objection and the reporter’s final report.

See paragraph 2A for the process that must be followed by the reporter.

  • (3) For the purposes of sub-paragraph (2) above the Secretary of State may make regulations limiting the time within which notification of objections may be made to the Secretary of State by relevant planning authorities, and providing that objections which are not notified within the time so limited may be disregarded for those purposes.
  • (4) Sub-paragraph (2) or (2A) above shall not apply where the appropriate authority proposes to accede to the application subject to such modifications or conditions as will give effect to the objection of the relevant planning authority.
  • (5) The appropriate authority may make regulations providing that, in relation to applications for consent under section 37 of this Act for electric lines of a nominal voltage less than 132 kilovolts, the provisions of this paragraph shall have effect with such modifications as may be prescribed.
  • (6) In this Schedule “relevant planning authority”—
  • (a) in relation to land in England ... which is not in a National Park for which a National Park authority is the local planning authority, means a local planning authority within the meaning of the Town and Country Planning Act 1990, except that in relation to a non-metropolitan county and an application for consent under section 37 of this Act it includes the county planning authority only—
  • (i) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  • (ii) where the line will have a nominal voltage of not less than 132 kilovolts;
  • (aa) in relation to land in England . . . which is in a National Park for which a National Park authority is the local planning authority, means that National Park authority; and
  • (ab) in relation to Wales, means a local planning authority;.
  • (b) in relation to Scotland, means a general planning authority, or a district planning authority, within the meaning of Part IX of the Local Government (Scotland) Act 1973.

Procedure following objection by relevant planning authority: Scotland

2A
  • (1) A reporter appointed under paragraph 2(2A)(a) must make proposals as regards the appropriate procedure for examining the application.
  • (2) The appropriate procedure may consist of one or more of the following—
  • (a) considering—
  • (i) the objection by the relevant planning authority,
  • (ii) any other objections made in accordance with regulations under paragraph 3(1)(c), and
  • (iii) any other representations made in accordance with an enactment;
  • (b) considering new written representations about the application from persons specified by the reporter;
  • (c) holding one or more hearing sessions;
  • (d) carrying out an inspection of the land to which the application relates;
  • (e) holding a public inquiry.
  • (3) Where the reporter proposes a procedure that includes proceedings within sub-paragraph (2)(b), (c) or (e), the proposal must include a statement of the issues that are proposed to be within the scope of each of those proceedings.
  • (4) The reporter must—
  • (a) publish the proposals,
  • (b) notify all interested parties of the proposals, and
  • (c) invite written representations about the proposals before the end of the time period specified by the reporter.
  • (5) The published proposals must include or be accompanied by an explanation of the reasons for the proposals.
  • (6) The reporter may hold a meeting to hear representations about the proposals.
  • (7) After considering the representations, the reporter must—
  • (a) decide on the appropriate procedure for examining the application, and
  • (b) publish that decision.
  • (8) The published decision must include or be accompanied by an explanation of—
  • (a) the reasons for the decision,
  • (b) the intended time period for the carrying out of the procedure, and
  • (c) the intended time period within which the reporter will send a final report to the Scottish Ministers.
  • (9) Sub-paragraph (3) applies to the reporter’s decision as it applies to the reporter’s proposals.
  • (10) On completing the examination, the reporter must prepare and send to the Scottish Ministers a final report setting out the reporter’s recommendations on the application.
  • (11) In this paragraph, “interested party” means—
  • (a) the applicant,
  • (b) the relevant planning authority which made the objection under paragraph 2(2A),
  • (c) any person who has made an objection in accordance with regulations under paragraph 3, or
  • (d) any person who has made representations in accordance with any other enactment.
  • (12) The Secretary of State or the Scottish Ministers may by regulations make provision amending or setting out further detail about the procedure set out in this paragraph. (See also paragraph 7B(2)(e).)
  • (13) A statutory instrument containing regulations under this paragraph is not to be made by the Secretary of State unless a draft of the instrument has been laid before, and approved by a resolution of, each House of Parliament.
  • (14) Regulations made by the Scottish Ministers under this paragraph are subject to the affirmative procedure.

Objections by other persons

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  • (1) The appropriate authority may by regulations make provision for securing—
  • (a) that notice of any application for consent under section 36 or 37 of this Act shall, in such circumstances as may be prescribed by the regulations, be published in such manner as may be so prescribed;
  • (b) that notice of any such application shall, in such circumstances as may be prescribed by the regulations or where the appropriate authority so directs, be served on such persons as may be so prescribed or, as the case may be, specified in the direction;
  • (c) that every notice published or served in pursuance of the regulations shall state the time within which, and the manner in which, objections to the application may be made by persons other than the relevant planning authority, and that the time so stated shall not be less than such minimum period as may be prescribed by the regulations; and
  • (d) that, in so far as any such notice requires objections to be sent to any person other than the appropriate authority, copies of the objections shall be sent to the appropriate authority by that person;

and in relation to applications for consent under section 36 of this Act to the extension of a generating station or to the operation of such a station in a different manner, the regulations may include provision for enabling the appropriate authority to give directions dispensing with the requirements of the regulations in such cases as the appropriate authority thinks fit.

  • (2) Where in the case of an application for consent under section 36 or 37 of this Act—
  • (a) a public inquiry is not required by virtue of paragraph 2(2) or 2A; but
  • (b) objections or copies of objections have been sent to the appropriate authority in pursuance of regulations made under this paragraph,

the appropriate authority shall consider those objections, together with all other material considerations, with a view to determining whether a public inquiry should be held with respect to the application and, if the appropriate authority thinks it appropriate to do so, shall cause a public inquiry to be held, either in addition to or instead of any other hearing or opportunity of stating objections to the application.

Public inquiries

4
  • (1) Where in accordance with paragraph 2(2) or 3(2) above a public inquiry is to be held in respect of an application that is made to the Secretary of State for consent under section 36 or 37 of this Act, the Secretary of State shall inform the applicant accordingly; and the applicant shall in two successive weeks publish a notice stating—
  • (a) the fact that the application has been made, and the purpose of it, together with a description of the land to which it relates;
  • (b) a place in the locality where a copy of the application, and of the map referred to in it, can be inspected; and
  • (c) the place, date and time of the public inquiry.
  • (2) A notice under sub-paragraph (1) above shall be published in one or more local newspapers circulating in the locality in which the land in question is situated, or circulating respectively in the several localities in which different parts of that land are situated, as the applicant may consider appropriate.
  • (3) If it appears to the Secretary of State that, in addition to the publication of a notice in accordance with sub-paragraphs (1) and (2) above, further notification of the public inquiry should be given (either by the service of notices, or by advertisement, or in any other way) in order to secure that the information specified in paragraphs (a) to (c) of sub-paragraph (1) above is sufficiently made known to persons in the locality, the Secretary of State may direct the applicant to take such further steps for that purpose as may be specified in the direction.
  • (3A) Where in accordance with paragraph 2A or 3(2) a public inquiry is to be held in relation to an application that is made to the Scottish Ministers for consent under section 36 or 37 of this Act, and it appears to the Scottish Ministers that in addition to any public notice of such an inquiry any further notification concerning the inquiry is necessary or expedient (either by way of service of notice upon any person or in any other way), the Scottish Ministers may direct the applicant to take such further steps for this purpose as may be specified in the direction.
  • (4) Where in accordance with paragraph 2(2) , 2A or 3(2) above a public inquiry is to be held in respect of an application for consent under section 36 or 37 of this Act and the appropriate authority is proceeding concurrently as mentioned in section 61(2) or (4) of this Act, the public inquiry shall extend to all the matters arising in the concurrent proceedings, and any notice of the inquiry (in addition to any other matters required to be stated in it) shall indicate the extent of the inquiry accordingly.
  • (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Provisions supplementary to paragraphs 2 to 4

5
  • (1) Where in accordance with paragraph 2(2) , 2A or 3(2) above a public inquiry is to be held and the application for consent relates to land in the areas of two or more relevant planning authorities—
  • (a) the application shall not be the subject of a public inquiry in so far as it relates to land which is not within the area of a planning authority who have notified the appropriate authority that they object to the application, unless the appropriate authority otherwise directs having regard to objections by other persons of which the appropriate authority has notice; and
  • (b) in so far as the application is to be the subject of a public inquiry in relation to land in the areas of two or more relevant planning authorities, the appropriate authority may direct that separate public inquiries shall be held;

and, where the appropriate authority gives any such directions, the provisions of paragraphs 2 to 4 above shall apply with the necessary modifications.

  • (2) For the purposes of sub-paragraph (1)(a) above a relevant planning authority who have notified the appropriate authority that they object to the application shall be treated as not having done so if the appropriate authority proposes to accede to the application subject to such modifications or conditions as will give effect to the objection.

Additional inspectors

5A
  • (1) This paragraph applies in the case of—
  • (a) a public inquiry in England and Wales by virtue of paragraph 2(2) or 3(2); or
  • (b) a public inquiry in England and Wales which is a combination under section 62 of this Act into one inquiry—
  • (i) of two or more such inquiries; or
  • (ii) of one or more such inquiries and one or more other inquiries.
  • (2) At any time after appointing a person to hold the inquiry (“the lead inspector”), the Secretary of State may direct him—
  • (a) to consider such matters relating to the conduct of the inquiry as are specified in the direction; and
  • (b) to make recommendations to the Secretary of State about those matters.
  • (3) After considering the recommendations of the lead inspector, the Secretary of State may—
  • (a) appoint for the purposes of the inquiry such number of additional inspectors as he thinks appropriate; and
  • (b) direct that each additional inspector must consider such of the matters to which the inquiry relates as are allocated to him by the lead inspector.
  • (4) An additional inspector must—
  • (a) comply with every direction as to procedural matters given to him by the lead inspector; and
  • (b) report to the lead inspector on every matter allocated to him.
  • (5) It is to be for the lead inspector to report to the Secretary of State on the consideration of both—
  • (a) the matters which he considered himself; and
  • (b) the matters the consideration of which was allocated to additional inspectors.
  • (6) The power of the Secretary of State to give directions to the lead inspector may be exercised on one or more different occasions after the appointment of the lead inspector.
  • (7) Accordingly—
  • (a) the recommendations that may be made by the lead inspector following such a direction include, in particular, a recommendation for varying the number of additional inspectors; and
  • (b) the power of the Secretary of State to appoint an additional inspector includes power to revoke such an appointment.
  • (8) A direction by any person under this paragraph may be varied or revoked by a subsequent direction by that person.

Proceedings for questioning certain decisions under paragraph 3(2)

5B
  • (1) If a person is aggrieved by a decision of the Scottish Ministers to which this paragraph applies, and wishes to question the validity of the decision on either of the grounds mentioned in sub-paragraph (2), the person (the “aggrieved person”) may make an application to the Inner House of the Court of Session under this paragraph.
  • (2) The grounds are that—
  • (a) the decision is not within the powers of the Scottish Ministers under this Schedule,
  • (b) one or more of the relevant requirements have not been complied with in relation to the decision.
  • (3) This paragraph applies to a decision under paragraph 3(2) as to whether a public inquiry should be held with respect to an application for consent to construct, extend or operate a generating station that comprises or is to comprise (in whole or in part) renewable energy installations situated at places in relevant waters.
  • (4) An application under this paragraph must be made within the period of 6 weeks beginning with the date on which the decision to which the application relates is published by the Scottish Ministers.
  • (5) On an application under this section, the Inner House of the Court of Session—
  • (a) may suspend the decision until the final determination of the proceedings,
  • (b) may quash the decision either in whole or in part if satisfied that—
  • (i) the decision in question is not within the powers of the Scottish Ministers under this Schedule, or
  • (ii) the interests of the aggrieved person have been substantially prejudiced by failure to comply with any of the relevant requirements in relation to the decision.
  • (6) In this paragraph—
  • “relevant waters” means—waters in or adjacent to Great Britain which are between the mean low water mark and the seaward limits of the territorial sea; andwaters in the area designated by the Renewable Energy Zone (Designation of Area) (Scottish Ministers) Order 2005 as the area in which the Scottish Ministers are to have functions.
  • “the relevant requirements”, in relation to a decision to which this paragraph applies, means the requirements of this Act, or of any regulations made under this Schedule, which are applicable to that decision.

Applications under paragraph 5B: requirement for permission

5C
  • (1) No proceedings may be taken in respect of an application under paragraph 5B unless the Inner House of the Court of Session has granted permission for the application to proceed.
  • (2) The Court may grant permission under sub-paragraph (1) for an application to proceed only if it is satisfied that—
  • (a) the applicant can demonstrate a sufficient interest in the subject matter of the application, and
  • (b) the application has a real prospect of success.
  • (3) The Court may grant permission under subsection (1) for an application to proceed—
  • (a) subject to such conditions as the Court thinks fit, or
  • (b) only on such of the grounds specified in the application as the Court thinks fit.

Special provisions as to consents under section 37

6
  • (1) Where an application for consent under section 37 of this Act states that all necessary wayleaves have not been agreed with owners and occupiers of land proposed to be crossed by the electric line, the appropriate authority may—
  • (a) give notice to the applicant that the appropriate authority does not intend to proceed with the application until the appropriate authority is satisfied, with respect to all the land over which wayleaves have not been agreed, that the applicant has applied to the appropriate authority for consent under paragraph 6 (acquisition of wayleaves) of Schedule 4 to this Act; or
  • (b) grant ... consent subject to the condition (either in respect of the whole of the line or in respect of any part of it specified in the consent) that the work is not to proceed until the appropriate authority has given ... permission.
  • (2) In determining at any time whether to give permission for any work to proceed, either generally or in respect of any part of the line, the appropriate authority—
  • (a) shall have regard to the extent to which the necessary wayleaves have been agreed by that time; and
  • (b) in so far as any such wayleaves have not then been agreed in respect of any part of the line, shall take into account any prejudicial effect which, in the opinion of the appropriate authority, the giving of permission (whether in respect of that part or of any adjacent part of the line) might have on any subsequent proceedings relating to the outstanding wayleaves.

Deemed planning permission etc.

7

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Generating stations not within areas of relevant planning authorities

7A
  • (1) This paragraph applies to every case where an application for a consent under section 36 of this Act relates to—
  • (a) the construction or operation of a generating station the whole or a part of which is to be, or is, at a place that is not within the area of a relevant planning authority; or
  • (b) the extension of a generating station at or to a place the whole or a part of which is not within such an area.
  • (2) This Schedule shall have effect in relation to cases to which this paragraph applies with the following modifications.
  • (3) In paragraph 1(1), for the words from “land to which” onwards substitute “ place to which the application relates, that is, the place where it is proposed to construct the generating station, where the proposed extension will be or where the station proposed to be operated is situated. ”
  • (4) Paragraph 2 does not apply where no part of the place to which the application relates is within the area of a relevant planning authority.
  • (5) In paragraph 4—
  • (a) in sub-paragraph (1)—
  • (i) in paragraph (a), for “land” substitute “ place ”; and
  • (ii) in paragraph (b), for “in the locality” substitute “ in the area specified in or determined in accordance with regulations made by the Secretary of State ”;
  • (b) in sub-paragraph (2), for the words from “the locality” onwards substitute “ the area specified in or determined in accordance with regulations made by the Secretary of State. ”; and
  • (c) in sub-paragraph (3), for “in the locality” substitute “ who are likely to be affected by the consent applied for if it is given ”.
  • (6) Paragraph 5 does not apply; but sub-paragraphs (7) to (10) apply where—
  • (a) a public inquiry is to be held in accordance with paragraph 2(2) , 2A or 3(2); and
  • (b) the application for consent relates to a place a part of which is in the area of one or more relevant planning authorities.
  • (7) Except in so far as the appropriate authority otherwise directs, an inquiry held in accordance with paragraph 2(2) or 2A must be confined to so much of the application as relates to land within the area of the planning authority by whom an objection has been made.
  • (8) The appropriate authority must have regard to objections made otherwise than by the planning authority in question in determining whether to give a direction under sub-paragraph (7) and in determining (where the appropriate authority gives one) what direction to give.
  • (9) The appropriate authority may direct that separate inquiries may be held in relation to any or each of the following—
  • (a) so much of the application as relates to land within the area of a particular relevant planning authority;
  • (b) so much of the application as relates to anywhere that is not within the area of a relevant planning authority.
  • (10) For the purposes of sub-paragraph (7) a planning authority that has made an objection is to be treated as not having done so if the appropriate authority proposes to accede to the application subject to such modifications or conditions as meet that objection.

Applications to the Scottish Ministers: time limits

7B
  • (1) The Secretary of State or the Scottish Ministers may by regulations specify a time limit for actions that may or must be taken in relation to an application to the Scottish Ministers for consent under section 36 or 37.
  • (2) The regulations may, for example, specify a time limit for—
  • (a) a person to comply with a requirement of regulations under paragraph 1A;
  • (b) a person to respond to a pre-application consultation (see paragraph 1A(3)(c));
  • (c) a person who is notified of an application in accordance with an enactment to provide their opinion or advice on the application;
  • (d) a relevant planning authority to object to an application under paragraph 2(2A);
  • (e) a reporter to take any steps required by paragraph 2A;
  • (f) the Scottish Ministers to decide an application.
  • (3) The regulations may include provision about the consequences of failure to comply with a time limit.
  • (4) Where regulations under this paragraph specify a time limit for the completion of an acceptance stage (see paragraph 1A(2)(c)), the regulations may not permit the extension of that limit.

Supplemental

8
  • (1) In this Schedule—
  • appropriate authority” means—in the case of an application made to the Secretary of State, the Secretary of State;in the case of an application made to the Scottish Ministers, the Scottish Ministers;
  • relevant planning authority” has the meaning given by paragraph 2(6) above.
  • (1A) In this Schedule references to applications for consent shall not include applications to the Welsh Ministers.
  • (2) In section 149 of the Local Government, Planning and Land Act 1980, each of the following, namely—
  • (a) subsection (3)(a) (power of Secretary of State to confer on urban development corporation functions of local planning authority in England and Wales); and
  • (b) subsection (8)(a) (which makes corresponding provision in relation to Scotland),

shall have effect in relation to the provisions of this Schedule (so far as applying to applications for consent under section 37 of this Act) as it has effect in relation to the provisions referred to in that subsection.

  • (3) Where an application for a declaration under section 36A of this Act is made with an application for a consent under section 36 of this Act, the application for the declaration shall be treated for the purposes of this Schedule as part of the application for the consent.

SCHEDULE 9 — PRESERVATION OF AMENITY AND FISHERIES.

Preservation of amenity: England and Wales

1
  • (1) In formulating any relevant proposals, a licence holder or a person authorised by exemption to generate, distribute, supply or participate in the transmission of electricity—
  • (a) shall have regard to the desirability of preserving natural beauty, of conserving flora, fauna and geological or physiographical features of special interest and of protecting sites, buildings and objects of architectural, historic or archeological interest; and
  • (b) shall do what he reasonably can to mitigate any effect which the proposals would have on the natural beauty of the countryside or on any such flora, fauna, features, sites, buildings or objects.
  • (2) In considering any relevant proposals for which its consent is required under section 36 or 37 of this Act, the appropriate authority shall have regard to—
  • (a) the desirability of the matters mentioned in paragraph (a) of sub-pargaraph (1) above; and
  • (b) the extent to which the person by whom the proposals were formulated has complied with his duty under paragraph (b) of that sub-paragraph.
  • (3) In this paragraph—
  • appropriate authority” has the meaning given by section 36(10)(b) or (c) of this Act;
  • building” includes structure;
  • relevant proposals” means any proposals—for the construction or extension of a generating station of a capacity not less than 10 megawatts, or for the opreation of such a station in a different manner;for the installation (whether above or below ground) of an electric line; orfor the execution of any other works for or in connection with the transmission or supply of electricity.
  • (4) The appropriate authority may by order provide that sub-paragraph (3) above shall have effect as if for the capacity mentioned in paragraph (a) there were substituted such other capacity as may be specified in the order.
  • (5) This paragraph and paragraph 2 below extend to England and Wales only.
2
  • (1) A licence holder shall within twelve months from the grant of his licence prepare, and from time to time modify, a statement setting out the manner in which he proposes to perform his duty under paragraph 1(1) above, including in particular the consultation procedures which he intends to follow.
  • (2) Before preparing or modifying a statement under this paragraph, a licence holder shall consult the Countryside Agency, and—
  • (a) where the activities which he is authorised by his licence to carry on include activities in England, Natural England and the Historic Buildings and Monuments Commission for England; and
  • (b) where those activities include activities in Wales, the Natural Resources Body for Wales and the National Assembly for Wales.
  • (3) As soon as practicable after preparing or modifying a statement under this paragraph, the licence holder shall publish the statement as so prepared or so modified in such manner as he considers appropriate.

Preservation of amenity and fisheries: Scotland

3
  • (1) In formulating any relevant proposals, a licence holder or a person authorised by an exemption to generate, distribute, supply or participate in the transmission of electricity—
  • (a) shall have regard to the desirability of preserving natural beauty, of conserving flora, fauna and geological or physiographical features of special interest and of protecting sites, buildings and objects of architectural, historic or archaeological interest; and
  • (b) shall do what he reasonably can to mitigate any effect which the proposals would have on the natural beauty of the countryside or on any such flora, fauna, features, sites, buildings or objects.
  • (2) In considering any relevant proposals for which his consent is required under section 36 or 37 of this Act, the Secretary of State shall have regard to—
  • (a) the desirability of the matters mentioned in paragraph (a) of sub-paragraph (1) above; and
  • (b) the extent to which the person by whom the proposals were formulated has complied with his duty under paragraph (b) of that sub-paragraph.
  • (3) Without prejudice to sub-paragraphs (1) and (2) above, in exercising any relevant functions each of the following, namely, a licence holder, a person authorised by an exemption to generate or supply electricity and the Secretary of State shall avoid, so far as possible, causing injuries to fisheries or to the stock of fish in any waters.
  • (4) In this paragraph—
  • building” includes structure;
  • relevant proposals” has the same meaning as in paragraph 1 above and, for the purposes of this paragraph, any such order as is mentioned in sub-pargaraph (4) of that paragraph may be made under this sub-paragraph;
  • relevant functions” means any powers conferred and any duties imposed by or under this Act.
  • (5) This paragraph and paragraphs 4 and 5 below extend to Scotland only.
4
  • (1) A licence holder shall within twelve months from the grant of his licence prepare, and from time to time modify, a statement setting out the manner in which he proposes too perform his duty under paragraph 3(1) above, inlcuding in particular the consultation procedures which he intends to follow.
  • (2) Before preparing or modifying a statement under this paragraph, a licence holder shall consult with Scottish Natural Heritage ... and with the National Park authority for any National Park which would be affected by the relevant proposals.
  • (3) As soon as practicable after preparing or modifying a statement under this paragraph, the licence holder shall publish the statement so prepared or so modified in such a manner as he considers appropriate.

Fisheries Committee: Scotland

5

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

SCHEDULE 10 — Transfers under Sections 66 and 67

Allocation of property, rights and liabilities: general

1
  • (1) The provisions of this paragraph shall apply where the transfers effected in pursuance of a transfer scheme include a transfer of all property, rights and liabilities comprised in a specified part of the transferor’s undertaking, but shall not apply to any such rights or liabilities under a contract of employment.
  • (2) Any property, right or liability comprised partly in the specified part of the transferor’s undertaking and partly in some other part or parts of that undertaking shall, where the nature of the property, right or liability permits, be divided or apportioned between the transferee of the specified part (“transferee A”) and the transferee of the other part or each of the other parts (“transferee B”) in such proportions as may be appropriate.
  • (3) Where any estate or interest in land falls to be so divided—
  • (a) any rent payable under a lease in respect of that estate or interest; and
  • (b) any rent charged on that estate or interest,

shall be correspondingly apportioned or divided so that the one part is payable in respect of, or charged on, only one part of the estate or interest and the other part is payable in respect of, or charged on, only the other part of the estate or interest.

  • (4) Sub-paragraph (3) above shall apply, with any necessary modifications, in relation to any feu duty payable in respect of an estate or interest in land in Scotland as it applies in relation to any rents charged on an estate or interest in land.
  • (5) Any property, right or liability comprised as mentioned in sub-paragraph (2) above the nature of which does not permit its division or apportionment as so mentioned shall be transferred to transferee A or transferee B according to—
  • (a) in the case of an estate or interest in land, whether on the transfer date transferee A or transferee B appears to be in greater need of the security afforded by that estate or interest or, where neither appears to be in greater need of that security, whether on that date transferee A or transferee B appears likely to make use of the land to the greater extent;
  • (b) in the case of any other property or any right or liability, whether on the transfer date transferee A or transferee B appears likely to make use of the property, or as the case may be to be affected by the right or liability, to the greater extent,

subject (in either case) to such arrangements for the protection of the other of them as may be agreed between them.

2
  • (1) The provisions of this paragraph shall apply where the transfers effected in pursuance of a transfer scheme include a transfer of all property, rights and liabilities comprised in a specified part of the transferor’s undertaking, but shall not apply to any such rights or liabilities under a contract of employment.
  • (2) It shall be the duty of the transferee of the specified part of the transferor’s undertaking (“transferee A”) and each of the other transferees (“transferee B”), whether before or after the transfer date, so far as practicable to arrive at such written agreements and to execute such other instruments as are necessary or expedient to identify or define the property, rights and liabilities transferred to transferee A or transferee B and as will—
  • (a) afford to transferee A and transferee B as against one another such rights and safeguards as they may require for the carrying on of their respective undertakings; and
  • (b) make as from such date, not being earlier than the transfer date, as may be specified in the agreement or instrument such clarification and modifications of the division of the transferor’s undertaking as will best serve the carrying on of the respective undertakings of transferee A and transferee B.
  • (3) Any such agreement shall provide so far as it is expedient—
  • (a) for the granting of leases and for the creation of other liabilities and rights over land whether amounting in law to interests in land or not, and whether involving the surrender of any existing interest or the creation of a new interest or not;
  • (b) for the granting of indemnities in connection with the severance of leases and other matters; and
  • (c) for responsibility for registration of any matter in any statutory register.
  • (4) If transferee A or transferee B represents to the Secretary of State, or if it appears to the Secretary of State without such a representation, that it is unlikely in the case of any matter on which agreement is required under sub-paragraph (2) above that such agreement will be reached, the Secretary of State, whether before or after the transfer date, may—
  • (a) give a direction determining that matter; and
  • (b) include in the direction any provision which might have been included in an agreement under sub-paragraph (2) above.
  • (5) Any property, rights or liabilities required by a direction under sub-paragraph (4) above to be transferred to transferee A or transferee B shall be regarded as having been transferred by this Act to, and by virtue thereof vested in, that transferee accordingly.

Allocation of rights and liabilities: contracts of employment

3
  • (1) The provisions of this paragraph shall apply where—
  • (a) the transfers effected in pursuance of a transfer scheme include a transfer of all property, rights and liabilities comprised in a specified part of the transferor’s undertaking; and
  • (b) it falls to be determined whether the rights and liabilities transferred to the transferee of that part (“transferee A”) include rights and liabilities under a particular contract of employment.
  • (2) Rights and liabilities under the contract of employment shall be transferred to transferee A only if immediately before the transfer date the employee is employed wholly or mainly for the purposes of the specified part of the transferor’s undertaking.
  • (3) The employee, transferee A or any of the other transferees may apply to the Secretary of State to determine whether or not rights and liabilities in respect of the employee’s services under the contract of employment are transferred to transferee A, and the Secretary of State’s decision on the application shall be final.

Variation of transfers by agreement

4
  • (1) The provisions of this paragraph shall apply where the transfers effected in pursuance of a transfer scheme include a transfer of all property, rights and liabilities comprised in a specified part of the transferor’s undertaking.
  • (2) At any time before the end of the period of twelve months beginning with the transfer date the transferee of the specified part and the transferee of any property, rights and liabilities comprised in some other part of the transferor’s undertaking may, with the approval of the Secretary of State, agree in writing that—
  • (a) as from such date as may be specified in or determined under the agreement; and
  • (b) in such circumstances (if any) as may be so specified,

there shall be transferred from the one transferee to, and vested in, the other transferee any property, rights and liabilities specified in the agreement; but no such agreement shall have effect in relation to rights and liabilities under a contract of employment unless the employee concerned is a party to the agreement.

  • (3) Subject to sub-paragraph (4) below, in the case of an agreement under sub-paragraph (2) above, the property, rights and liabilities in question shall on the date of the coming into force of the agreement be transferred, and by virtue of the agreement vest, in accordance with the agreement.
  • (4) The following provisions of this Schedule shall have effect as if—
  • (a) any reference to a transfer effected in pursuance of a transfer scheme included a reference to a transfer effected in pursuance of an agreement under sub-paragraph (2) above;
  • (b) any reference to a transaction effected in pursuance of paragraph 2(2) above or of a direction under paragraph 2(4) above included a reference to such an agreement; and
  • (c) any reference to a vesting by virtue of this Act included a reference to a vesting by virtue of such an agreement.

Right to production of documents of title

5
  • (1) The provisions of this paragraph shall apply where the transferee under a transfer effected in pursuance of a transfer scheme (“transferee A”) is entitled to possession of any document relating in part to the title to, or to the management of, any land or other property transferred to the transferee under some other transfer effected in pursuance of that scheme (“transferee B”).
  • (2) Where the land or other property is situated in England and Wales—
  • (a) transferee A shall be deemed to have given to transferee B an acknowledgment in writing of the right of transferee B to production of the document and to delivery of copies thereof; and
  • (b) section 64 of the Law of Property Act 1925 shall have effect accordingly, and on the basis that the acknowledgment did not contain any such expression of contrary intention as is mentioned in that section.
  • (3) Where the land or other property is situated in Scotland, subsections (1) and (2) of section 16 of the Land Registration (Scotland) Act 1979 (omission of certain clauses in deeds) shall have effect in relation to the transfer as if the transfer had been effected by deed and as if from each of those subsections the words “unless specially qualified” were omitted.

Proof of title by certificate

6
  • (1) Where two or more transfers are effected in pursuance of a transfer scheme, a certificate issued by either or any of the transferees (“transferee A”) with the concurrence of the other or others of them that—
  • (a) any property specified in the certificate;
  • (b) any such interest in or right over any such property as may be so specified; or
  • (c) any right or liability so specified,

is by virtue of this Act for the time being vested in transferee A shall be conclusive evidence for all purposes of that fact, and shall constitute a link of title for the purposes of section 5(1) of the Conveyancing (Scotland) Act 1924 (deduction of title).

  • (2) If, on the expiration of one month after a request from either or any of the transferees (“transferee A”) for the other or one of the others of them (“transferee B”) to concur in the issue of such a certificate, transferee B has failed so to concur—
  • (a) transferee A may refer the matter to the Secretary of State; and
  • (b) the Secretary of State may direct transferee B to concur in the issue of a certificate prepared in such terms as are specified in the direction.

Restrictions on dealing with certain land

7
  • (1) Where two or more transfers are effected in pursuance of a transfer scheme and the Secretary of State is satisfied, on the representation of either or any of the transferees (“transferee A”), that—
  • (a) in consequence of those transfers, different interests in land, whether the same or different land, are held by transferee A and by the other or one of the other transferees (“transferee B”); and
  • (b) the circumstances are such that the provisions of this paragraph should have effect,

the Secretary of State may direct that those provisions shall apply to such of that land as may be specified in the direction; and while the direction remains in force, those provisions shall have effect accordingly.

  • (2) Neither transferee A nor transferee B shall dispose of any interest to which they may respectively be entitled in any of the specified land except with the consent of the Secretary of State.
  • (3) If, in connection with any proposal to dispose of any interest of either transferee A or transferee B in any of the specified land, it appears to the Secretary of State to be necessary or expedient for the protection of either of them, he may—
  • (a) require either transferee A or transferee B to dispose of any interest to which it may be entitled in any of the specified land to such person and in such manner as may be specified in the requirement;
  • (b) require either transferee A or transferee B to acquire from the other any interest in any of the specified land to which that other is entitled; or
  • (c) consent to the proposed disposal subject to compliance with such conditions as the Secretary of State may see fit to impose.
  • (4) A person other than transferee A and transferee B dealing with, or with a person claiming under, either transferee A or transferee B shall not be concerned to see or enquire—
  • (a) whether this paragraph applies or has applied in relation to any land to which the dealing relates; or
  • (b) whether the provisions of this paragraph have been complied with in connection with that or any other dealing with that land,

and no transaction between persons other than transferee A and transferee B shall be invalid by reason of any failure to comply with those provisions.

Third parties affected by vesting provisions

8
  • (1) A transaction of any description which, in pursuance of paragraph 2(2) above or of a direction under paragraph 2(4) above, is effected between transferee A and transferee B—
  • (a) shall have effect subject to the provisions of any enactment which provides for transactions of that description to be registered in any statutory register; but
  • (b) subject to that, shall be binding on all persons notwithstanding that it would, apart from this sub-paragraph, have required the consent or concurrence of any other person.
  • (2) If any transaction is effected in pursuance of paragraph 2(2) above or of a direction under paragraph 2(4) above, transferee A and transferee B shall notify any person who has rights or liabilities which thereby become enforceable as to part by or against transferee A and as to part by or against transferee B.
  • (3) If, within 28 days of being notified, such a person as is mentioned in sub-paragraph (2) above applies to the Secretary of State and satisfies him that the transaction operated unfairly against him, the Secretary of State may give such directions to transferee A and transferee B as appear to him appropriate for varying the transaction.
9
  • (1) If in consequence of two or more transfers effected in pursuance of a transfer scheme or of anything done in pursuance of the provisions of this Schedule—
  • (a) the rights or liabilities of any person other than the transferor and the transferees which were enforceable against or by the transferor become enforceable as to part against or by one transferee and as to part against or by another transferee; and
  • (b) the value of any property or interest of that person is thereby diminished,

such compensation as may be just shall be paid to that person by one or more of the transferees.

  • (2) Any dispute as to whether, and if so how much, compensation is payable under sub-paragraph (1) above, or as to the person to or by whom it shall be paid, shall be referred to and determined—
  • (a) by an arbitrator appointed by the Lord Chancellor; or
  • (b) where the proceedings are to be held in Scotland, by an arbiter appointed by the Lord President of the Court of Session.
  • (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Interpretation

10

Any reference in this Schedule to a transfer effected in pursuance of a transfer scheme is a reference to a transfer effected by this Act in pursuance of such a scheme.

SCHEDULE 11 — TAXATION PROVISIONS

General

1
  • (1) Subject to sub-paragraphs (2) and (3) below, the following provisions shall apply for the purposes of the Corporation Tax Acts, namely—
  • (a) all the trades or parts of trades carried on by the existing bodies which are transferred by this Act to successor companies shall be treated as having been, at the time of their commencement and at all times since that time, separate trades carried on by those companies respectively;
  • (b) the trade carried on by each of those companies after the transfer date shall be treated as the same trade as that which, by virtue of paragraph (a) above, it is treated as having carried before that date;
  • (c) all property, rights and liabilities of an existing body which are transferred by this Act to a successor company shall be treated as hvaing been, at the time when tney became vested in that body and at all times since that time, property, rights and liabilities of that company; and
  • (d) anything done by an existing body in relation to property, rights and liabilities which are transferred by this Act to a successor company shall be deemed to have been done by that company.
  • (2) Except in the case of an Area Board, there shall be made such apportionments of unallowed tax losses and of expenditure by reference to which capital allowances may be made as may be specified in the transferor’s transfer scheme.
  • (3) Where any property, rights and liabilities of an existing body in England and Wales which are transferred by this Act to a successor company became vested in that body by virtue of a qualifying transfer, or two or more successive qualifying transfers—
  • (a) sub-paragraph (1)(c) above shall have effect as if the reference to the time when the property, rights and liabilities became vested in that body were a reference to the time when they became vested in the original transferor, that is to say, the transferor under the qualifying transfer or, as the case may be, the first qualifying transfers; and
  • (b) if the property, rights and liabilities becam vested in the original transferor by virtue of a transfer made by a compnany in which, at the time of the transfer, the original transferor or another existing body in England or Wales held an interest, that interest shal be deemed to have been held at that time by the successor company.
  • (4) Where any property, rights and liabilities of an existing body in England or Wales which are transferred by this Act to a successor company became vested in that body by virtue of a transfer made by a company in which, at the time of the transfer, that body or another body held an interest, that interest shall be deemed to have been held at that time by the successor company.
  • (5) In this paragraph—

capital allowance” has the same meaning as in the Tax Acts;

the final accounting period” means the last complete accounting period of the relevant body, that is to say—

  • (a) in the case of an existing body in England or Wales, the Electricity Council;
  • (b) in the case of an existing body in Scotland, that body,

ending before that transfer date;

qualifying transfer” means a transfer to an existing body in England and Wales by another such body;

unallowed tax losses” means any losses, allowances or amounts which, as at the end of the final accountign period, are tax losses within the meaning given by section 400(2) of the 1988 Act;

  • (6) This paragraph shall have effect in relation to accounting periods beginning after the final accounting period.

Chargeable gains

2
  • (1) This paragraph applies where—
  • (a) by virtue of a transfer of property, rights and liabilities effected by this Act to a successor company (in this paragraph referred to as “the transferee”), a company would, but for paragraph (1) above, cease to be a member of a group of which an existing body is a member; and
  • (b) assets have been acquired by that company from that body or from any other member of that group.
  • (2) On the company ceasing to be a member of a group of which the transferee is a member, section 178 or 179 of the 1992 Act (company ceasing to be a member of a group) shall apply as if any assets acquired at any time as mentioned in sub-paragraph (1) above had been acquired by the company from the transferee at that time.
  • (3) In this paragraph “group” has the meaning given by section 170 of the 1992 Act; and in construing this paragraph the provisions of section 511(2) of the 1988 Act and the corresponding earlier enactments shall be disregarded.
2A

In this Schedule “the 1992 Act” means the Taxation of Chargeable Gains Act 1992.

Roll-over relief

3
  • (1) Where—
  • (a) a held over gain would, but for the provisions of section 154 of the 1992 Act, have beencarried forward to a depreciating asset; and
  • (b) that asset is transferred by this Act to a successor company,

that section shall have effect as if the gain had accrued to, and the claim for it to be held oveer had been made by, that company.

  • (2) In this paragraph the expressions which are used in the said section 154 have the same meanings as in that section.

Unallowed capital losses

4
  • (1) Any unallowed capital losses of an existing body shall be treated as allowable capital losses accruing to the appropriate successor company on the diposal of an asset on the transfer date.
  • (2) Immediately before the transfer date the unallowed capital losses of the Electricity Council shall be divided between the existing bodies in England and Wales; and there shall be allocated to each such body such proportion (if any) of those losses as is given by the formula—

$$AB$where—$

  • A is the amount which, but for section 511(2) of the 1988 Act and the corresponding earlier enactments, would have been the amount of the unallowed capital losses of that body;
  • B is the aggregate of the amounts which, but for that section and those enactments, would have been the amounts of the unallowed capital losses of those bodies.
  • (3) In this paragraph—

allowable capital losses” means losses which are allowable for the purposes of the 1992 Act;

unallowed capital losses”, in relation to any body, means any allowable capital losses which have been accrued to that body before the transfer date, in so far as they have not been allowed as deductions from chargeable gains.

Transaction in pursuance of section 68(2)(c)

5
  • (1) Sub-paragraph (2) below applies to any disposal (within the meaning of the 1992 Act) which is effected, and sub-paragraphs (3) and (4) below apply to any lease which is granted, in pursuance of a provision included in a transfer scheme by virtue of section 68(2) of this Act.
  • (2) A disposal to which this sub-paragraph applies shall be taken for the purposes of the 1992 Act to be effected for a consideration of such amount as would secure that on the disposal neither a gain nor a loss would accrue to the disponer.
  • (3) Section 291(1) of the Capital Allowances Act 2001 (supplementary provisions with respect to elections) shall not prevent the application of section 290 of that Act (election to treat grant of lease exceeding 50 years as sale) where the lease is a lease to which this sub-paragraph applies.
  • (4) Where, in the case of any machinery or plant which is a fixture and on the provision of which for the purposes of the transferor’s trade the transferor incurred capital expenditure, a lease of the relevant land (with or without other land) is a lease to which this sub-paragraph applies—
  • (a) the lessor shall not be required to bring the disposal value of the machinery or plant into account in accordance with Chapter 5 of Part 2 of the Capital Allowances Act 2001 (writing down allowances and balancing adjustments); and
  • (b) so far as relating to the bringing of disposal values into account, Chapters 5 and 14 ofPart 2 of the Capital Allowances Act 2001 (capital allowances for fixtures) shall have effect as if—
  • (i) the capital expenditure incurred by the transferor had been incurred by the lessee on the provision of the machinery or plant wholly and exclusively for the purposes of the lessee’s trade; and
  • (ii) the machinery or plant had become a fixture, immediately after the grant of the lease.
  • (5) In sub-paragraph (4) above “the transferor” means the transferor under the transfer scheme in question and expressions which are used in Chapter 14 of Part 2 of the Capital Allowances Act 2001 have the same meanings as in that Chapter; and in construing that sub-paragraph section 511(2) of the 1988 Act shall be disregarded.

Transfers in pursuance of Schedule 10

6

Where any property, rights and liabilities to which a transfer effected by this Act relates are, in pursuance of Schedule 10 to this Act, transferred by the transferee to another successor company—

  • (a) the foregoing provisiions of this Schedule shall have effect as if the transfer effected by this Act had been a transfer to the other successor company; and
  • (b) anything which, in relation to the property, rights and liabilities transferred, was done by the transferee for the purposes of the transferee’s trade shall be deemed to have been done by the other successor company for the purposes of that company’s trade.

Apportionments etc.

7
  • (1) This paragraph applies where any apportionment or other matter arising under the foregoing provisions of this Schedule appears to be material as respects the liability to tax (for whatever period) or two or more successor companies.
  • (2) Any question which arises as to the manner in which the apportionment is to be made or the matter to be dealt with shall be determined, for the purposes of tax of all the companies—
  • (a) in a case where the same body of General Commissioners have juridiction with respect to all those companies, by those Commissioners, unless all the companies agree that it shall be determined by the Special Commissioners;
  • (b) in a case where different bodies of Commissioners have jurisdiction with respect to those companies, by such of those bodies as the Board may direct, unless all the companies agree that it shall be determined by the Special Commissioners; and
  • (c) in any other case, by the Special Commissioners.
  • (3) The Commissioners by whom the question falls to be determined shall make the determination in like manner as if it were an appeal except that all the companies shall be entitled to appear and be heard by the Commissioners or to make representations to them in writing.

Securities of successor companies

8
  • (1) Any share issued by a successor company in pursuance of section 71 or 80 of this Act shall be treated for the purposes of the Corporation Tax Acts as if it had been issued wholly in consideration of a subscription paid to that company of an amount equal to the nominal value of the share.
  • (2) Any debenture issued by a successor company in pursuance of section 71 or 80 of this Act shall be treated for the purposes of the Corporation Tax Acts as if it had been issued—
  • (a) wholly in consideration of a loan made to that company of an amount equal to the principal sum payable under the debenture; and
  • (b) wholly and exclusively for the purposes of the trade carried on by that company.

and if any such debenture includes provision for the payment of a sum expressed as interest in respect of a period which falls wholly or partly before the issue of the debenture, any payment made in pursuance of that provision in respect of that period shall be treated for the purposes of the Corporation Tax Acts as if the debenture had been issued at the commencement of that period and, accordingly, as interest on the principal sum payable under the debenture.

Extinguishment of liabilities: restriction of tax losses

9
  • (1) Section 400(1) of the 1988 Act (write-off of government investment: restriction of tax losses) shall not have effect by virtue of section 80(1) of this Act; but in the case of any such extinguishment (whether or not it is a case as regards which the said section 400(1) would, but for the foregoing provisions of this sub-paragraph, have effect) the Secretary of State may, with the consent of the Treasury, from time to time, direct that such amount (“amount” including nil) as is specified in the direction shall be set off against the sucessor company’s tax losses as at the end of the accounting period ending last before the date of the direction.
  • (2) In any direction under sub-paragraph (1) above it may further be provided that the balance of tax losses remaining after the set off shall be aggregated with the balance of another successor company’s (or other successor companies’) tax losses remaining after a direction underr that sub-paragraph in respect of that other company (or directions in respect of those other companies) and the losses so aggregated apportioned between the companies in such manner as may be specified in the direction which makes such further provision.
  • (3) No direction shall be given under sub-paragraph (1) above in relation to a successor company as a time when the company has ceased to be wholly owned by the Crown.
  • (4) For the purpose of sub-paragraphs (1) and (2) above, a successor company’s tax losses at the end of the accounting period mentioned in the said sub-paragraph (1) are those referred to in paragraphs (a) to (e) of subsection (2) of the said section 400; and subsections (3) and (4) of that section shall have effect in relation to any set off under sub-paragraph (1) above as if—
  • (a) any reference to subsection (1) of that section were a reference to sub-paragraph (1) above; and
  • (b) the reference in subsection (4) of that section to the write-off date were a reference to the date of the direction under sub-paragraph (1) above.
  • (5) Subsection (6) of the said section 400 shall apply in relation to any such extinguishment as is mentioned in sub-pargaraph (1) above as if the reference to the body in question were a reference to the company whose liabilities are so extinguished.
  • (6) The trade carried on by a company whose liabilities are extinguished by virtue of section 80(1) of this Act shall, if the company’s tax losses are aggregated and apportioned by virtue of sub-pargaraph (2) above, be treated for the purposes of giving any relief under the Corporation Tax Acts in respect of the losses so apportioned as being, and having at all times been, the trade carried on by the successor companies to which the losses are apportioned.
  • (7) In this paragraph “accounting period” has the same meaning as in the 1988 Act.

Income tax exemption for certain interests

10

The vesting in a successor company by this Act of a liability for any loan made to an existing body shall not affect any direction in respect of the loan given or having effect as if given by the Treasury under section 755 of the Income Tax (Trading and Other Income) Act 2005 (income tax exemption for interest on foreign securities).

Stamp Duty

11
  • (1) No transfer effected by this Act shall give rise to any liability to stamp duty.
  • (2) Stamp duty shall not be chargeable on a transfer scheme or, subject to sub-paragraph (3) below, on any instrument which is certified to the Board by the Secretary of State as having been made in pursuance of such a scheme.
  • (3) No instrument which is certified as mentioned in sub-paragraph (2) above shall be taken as duly stamped unless—
  • (a) it is stamped with the duty to which it would but for that sub-paragraph be liable; or
  • (b) it has, in accordance with section 12 of the Stamp Act 1891, been stamped with a particular stamp denoting that it is not chargeable with that duty or that it is duly stamped.
  • (4) Stamp duty shall not be chargeable on any instrument which is made in pursuance of Schedule 10 to this Act.
  • (5) Stamp duty shall not be chargeable on any instrument by which the Secretary of State, or any nominee of the Treasury or the Secretary of State, transfers securities of a company to another company if—
  • (a) either or both of the companies are successor companies; and
  • (b) each of the companies is, at the time when the instrument is made,

wholly owned by the Crown.

Stamp duty reserve tax

12
  • (1) No agreement made for the purposes of or for purposes connected with a transfer scheme shall give rise to a charge to stamp duty reserve tax.
  • (2) No agreement which is made in pursuance of Schedule 10 to this Act shall give rise to a charge to stamp duty reserve tax.
  • (3) No agreement by which the Treasury or the Secretary of State, or any nominee of the Treasury or Secretary of State, agrees to transfer securities of a company to another company shall give rise to a charge to stamp duty reserve tax if—
  • (a) either or both of the companies are successor companies; and
  • (b) each of the companies is, at the time when the agreement is made,

wholly owned by the Crown.

Interpretation etc.

13
  • (1) In this Schedule—
  • the 1988 Act” means the Income and Corporation Tax Act 1988;
  • the Board” means the Commissioners of Inland Revenue;
  • existing body in England and Wales” means an Area Board, the Generating Board or the Electricity Council;
  • existing body in Scotland” means a Scottish board.
  • (2) For the purposes of this Schedule a transfer, instrument or agreement shall be regarded as made in pursuance of Schedule 10 to this Act if the making of that transfer, instrument or agreement is required or authorised by or under paragraph 2 or 4 of that Schedule.

SCHEDULE 12 — Nuclear Liabilities: Financial Assistance

Grants by Secretary of State

1
  • (1) ... , the Secretary of State may, with the approval of the Treasury, make grants of such amounts as he thinks fit for the purpose of meeting qualifying expenditure, that is to say, expenditure incurred or to be incurred by any person (whether or not the same person as the person to whom the grant is made) in connection with—
  • (a) the storage or reprocessing of nuclear fuel;
  • (b) the treatment, storage or disposal of radioactive waste;
  • (ba) the cleaning-up of a principal nuclear site; or
  • (c) the decommissioning of a nuclear installation.
  • (2) ... , the Secretary of State may, with the approval of the Treasury, enter into an agreement with any person under which the Secretary of State undertakes that, if such conditions as may be specified in the agreement are satisfied, he will exercise the power conferred by this paragraph in such manner and to such extent as may be specified in the agreement.
  • (3) A grant under this paragraph may be made at such times, in such manner and subject to such conditions as the Secretary of State with the approval of the Treasury may determine.
  • (4) Any sums required by the Secretary of State for making grants under this paragraph shall be paid out of money provided by Parliament.
  • (5) In this paragraph “cleaning-up”, “decommissioning”, “nuclear installation” and “principal nuclear site” have the same meanings as in Chapter 1 of Part 1 of the Energy Act 2004.

Loans by Secretary of State

2
  • (1) ... , the Secretary of State may, with the approval of the Treasury, make loans of such amounts as he thinks fit for the purpose of meeting qualifying expenditure.
  • (2) A loan under this paragraph—
  • (a) may be made at such times, in such manner and subject to such conditions as the Secretary of State may with the approval of the Treasury determine; and
  • (b) shall be repaid to him at such times and by such methods, and interest thereon shall be paid to him at such rates and at such times, as he may, with the approval of the Treasury, from time to time direct.
  • (3) Any sums required by the Secretary of State for making loans under this paragraph shall be paid out of money provided by Parliament.
  • (4) Any sums received under sub-paragraph (2) above by the Secretary of State shall be paid into the Consolidated Fund.
  • (5) It shall be the duty of the Secretary of State—
  • (a) to prepare in respect of each financial year, in such form as the Treasury may direct, an account of sums issued to him for loans under this paragraph or received by him under this paragraph, and of the disposal by him of those sums; and
  • (b) to send the account to the Comptroller and Auditor General not later than the end of November in the following financial year;

and the Comptroller and Auditor General shall examine, certify and report on the account and shall lay copies of it and of his report before each House of Parliament.

Guarantees by Secretary of State

3
  • (1) ..., the Secretary of State with the approval of the Treasury may guarantee, in such manner and on such terms as he may think fit, the repayment of the principal of, the payment of interest on, and the discharge of any other financial obligation in connection with, any sums which are borrowed from a person other than the Secretary of State for the purpose of meeting qualifying expenditure.
  • (2) Immediately after a guarantee is given under this paragraph, the Secretary of State shall lay a statement of the guarantee before each House of Parliament; and immediately after any sum is paid for fulfilling a guarantee so given, the Secretary of State shall so lay a statement relating to that sum.
  • (3) Any sums required by the Secretary of State for fulfilling a guarantee under this paragraph shall be paid out of money provided by Parliament.
  • (4) If any sums are paid out in fulfilment of a guarantee given under this paragraph the person whose obligations are so fulfilled shall make to the Secretary of State, at such times and in such manner as the Secretary of State may from time to time direct—
  • (a) payments of such amounts as the Secretary of State may so direct in or towards repayment of the sums so paid out; and

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