Nuclear Energy (Financing) Act 2022

• (e) provision about RLNC administration orders, including provision about the raising of funds for the purpose of meeting expenses arising by virtue of such an order;

• (f) provision about the disclosure or publication of information by the relevant licensee nuclear company.

• (5) The Secretary of State may modify—

• (a) the standard conditions incorporated in licences under section 6(1)(a) to (d) of the Electricity Act 1989 by virtue of section 8A of that Act;

• (b) a document maintained in accordance with the conditions of licences under section 6(1)(a) to (d) of the Electricity Act 1989 or an agreement that gives effect to a document so maintained.

• (6) The Secretary of State may exercise the power under subsection (5) only if the Secretary of State considers it appropriate to do so in consequence of, or for purposes incidental or supplementary to, the making of a modification under subsection (1).

• (7) References in this section to the activities of a relevant licensee nuclear company are references to the company’s activities in relation to the design, construction, commissioning and operation of the nuclear energy generation project in respect of which it holds a relevant licence, including its activities in complying with any obligations it has under an approved funded decommissioning programme under Chapter 1 of Part 3 of the Energy Act 2008.

Procedure etc relating to modifications under section 35

36

• (1) Before making a modification under a power conferred by section 35(1) or (5), the Secretary of State must consult—

• (a) the nuclear administrator (including as agent of the relevant licensee nuclear company),

• (b) the Authority,

• (c) the Office for Nuclear Regulation,

• (d) where any part of the relevant site is in England, the Environment Agency,

• (e) where any part of the relevant site is in Wales, the Welsh Ministers and Natural Resources Wales,

• (f) where any part of the relevant site is in Scotland, the Scottish Ministers and the Scottish Environment Protection Agency,

• (g) in the case of a modification under section 35(5), other holders of a licence being modified, and

• (h) such other persons as the Secretary of State considers appropriate.

• (2) For the purposes of subsection (1), the “relevant site” is the site of the nuclear installation (within the meaning of the Nuclear Installations Act 1965) in respect of which the relevant licensee nuclear company holds a relevant licence.

• (3) The powers under section 35(1) and (5)—

• (a) may be exercised generally, only in relation to specified cases, or subject to exceptions (including provision for a case to be excepted only so long as specified conditions are satisfied);

• (b) may be exercised differently for different purposes;

• (c) include a power to make incidental, supplementary, consequential or transitional modifications.

• (4) Provision included in a licence, or in a document or agreement described in section 35(5)(b), by virtue of section 35(1) or (5)—

• (a) may make different provision for different purposes;

• (b) need not relate to the activities authorised by the licence;

• (c) may do anything authorised for licences of that type by section 7(4), (5)(a) or (6A) of the Electricity Act 1989.

• (5) The Secretary of State must publish details of any modifications made under section 35(1) or (5) as soon as reasonably practicable after they are made.

• (6) The Secretary of State may exclude from publication under subsection (5) anything the publication of which the Secretary of State considers—

• (a) would be likely to prejudice the commercial interests of any person, or

• (b) would be contrary to the interests of national security.

• (7) If under section 35(5) the Secretary of State makes a modification of the standard conditions of a licence, the Authority must—

• (a) make the same modification of those standard conditions for the purposes of their incorporation in licences of that type granted after that time, and

• (b) publish the modification.

• (8) A modification made under section 35(1) or (5) of part of a standard condition of a licence does not prevent any other part of the condition from continuing to be regarded as a standard condition for the purposes of Part 1 of the Electricity Act 1989.

Powers to modify enactments

Modification under the Enterprise Act 2002

37

• (1) The power to modify or apply enactments conferred on the Secretary of State by each of sections 248 and 277 of the Enterprise Act 2002 (amendments consequential on that Act) includes power to make such consequential modifications of this Part as the Secretary of State considers appropriate in connection with any other provision made under that section.

• (2) In section 170(1) of the Energy Act 2004 (modification of Chapter 3 of Part 3 of that Act under the Enterprise Act 2002), for “or section 4 of the Smart Meters Act 2018” substitute “, section 4 of the Smart Meters Act 2018 or section 33 of the Nuclear Energy (Financing) Act 2022”.

Power to make further modifications of insolvency legislation

38

• (1) The Secretary of State may by regulations—

• (a) provide for insolvency legislation to apply in relation to any provision made by or under this Part;

• (b) make such modifications of insolvency legislation as the Secretary of State considers appropriate in relation to any provision made by or under this Part (including any insolvency legislation that is applied under paragraph (a)).

• (2) In relation to regulations under subsection (1), “insolvency legislation” means—

• (a) the Insolvency Act 1986,

• (b) Chapter 3 of Part 3 of the Energy Act 2004, and

• (c) any other provision that relates to insolvency, or makes provision by reference to anything that is or may be done under the Insolvency Act 1986, and is—

• (i) contained in an Act passed before this Act or in the same Session, or

• (ii) made under an Act before the regulations come into force.

• (3) Provision made under subsection (1) may amend this Part.

• (4) Regulations under this section are to be made by statutory instrument.

• (5) Regulations under this section must not be made unless a draft of the statutory instrument containing them has been laid before and approved by a resolution of each House of Parliament.

Interpretation

Interpretation of Part 3

39

• (1) In this Part—

• “the Authority” means the Gas and Electricity Markets Authority;

• “business”, “member” and “property” have the same meanings as in the Insolvency Act 1986;

• “company” means a company registered under the Companies Act 2006 in England and Wales or Scotland;

• “court”, in relation to a company, means the court— having jurisdiction to wind up the company, or that would have such jurisdiction apart from section 221(2) or 441(2) of the Insolvency Act 1986 (exclusion of winding up jurisdiction in case of companies having principal place of business in, or incorporated in, Northern Ireland);

• “functions” includes powers and duties;

• “modification” includes omission, addition or alteration, and cognate expressions are to be construed accordingly;

• “nuclear administrator” has the meaning given by section 31(2) and is to be construed in accordance with subsection (2) of this section;

• “objective of a relevant licensee nuclear company administration” is to be construed in accordance with section 32;

• “relevant licence” has the meaning given by section 31(4);

• “relevant licensee nuclear company” has the same meaning as in Part 1;

• “RLNC administration order” (or “relevant licensee nuclear company administration order”) has the meaning given by section 31(1);

• “subsidiary” and “wholly-owned subsidiary” have the meaning given by section 1159 of the Companies Act 2006.

• (2) In this Part references to the nuclear administrator of a company—

• (a) include references to a person appointed under paragraph 91 or 103 of Schedule B1 to the Insolvency Act 1986, as applied by Part 1 of Schedule 20 to the Energy Act 2004 and section 33 of this Act to be the nuclear administrator of that company, and

• (b) where two or more persons are appointed to be the nuclear administrator of that company, are to be construed in accordance with the provision made under section 158(5) of the Energy Act 2004, as applied by section 33 of this Act.

PART 4 — Miscellaneous and final provisions

Decommissioning of nuclear sites: bodies corporate not “associated”

40

• (1) In section 67 of the Energy Act 2008 (meaning of “associated” for the purposes of Chapter 1 of Part 3 of that Act), after subsection (7) insert—

(8) This section is subject to section 67A.

• (2) After section 67 of that Act insert—

(67A) (1) In determining whether, by virtue of section 67, A has a significant interest in B, the following are to be disregarded— (a) relevant share security rights that A holds in relation to B; (b) subject to subsection (4), shares in B that are acquired by A in consequence of the exercise of relevant share security rights that A holds in relation to B; (c) any power that A has, directly or indirectly, to secure that the affairs of B are conducted in accordance with A’s wishes by virtue of— (i) relevant share security rights that A holds in relation to B, (ii) arrangements that are designed to facilitate the exercise of relevant share security rights that A holds in relation to B, or (iii) relevant asset security rights that A holds in relation to B, if A also holds relevant share security rights in relation to B. (2) A holds “relevant share security rights” in relation to B if A holds— (a) rights to enforce a security interest over shares in B, (b) rights relating to enforcement of a security interest over shares in B, or (c) rights that enable A to preserve the value of a security interest over shares in B. (3) A holds “relevant asset security rights” in relation to B if A holds— (a) rights to enforce a security interest over any of B’s assets, (b) rights relating to enforcement of a security interest over any of B’s assets, or (c) rights that enable A to preserve the value of a security interest over any of B’s assets. (4) Subsection (1)(b) does not apply if the shares acquired by A are retained by A for a purpose other than that of preserving the value of the security interest in question or of realising it. (5) In this section— (a) a reference to “shares” includes a reference to rights attached to shares; (b) a reference to A holding rights in relation to B includes a reference to— (i) A holding those rights on trust for another person, and (ii) A being the beneficiary of a trust of those rights; (c) a reference to A acquiring shares in B includes a reference to— (i) A acquiring shares in B to hold on trust for another person, and (ii) another person acquiring shares in B to hold on trust for A; (d) a reference to rights includes a reference to powers.

Financial provision

41

• (1) There is to be paid out of money provided by Parliament—

• (a) any expenditure incurred by the Secretary of State by virtue of this Act;

• (b) any expenditure incurred by the Competition and Markets Authority by virtue of this Act;

• (c) any expenditure incurred by the Authority by virtue of this Act;

• (d) any increase attributable to this Act in the sums payable out of money so provided under any other Act.

• (2) The expenditure referred to in subsection (1)(a) includes expenditure incurred by the Secretary of State for the purposes of or in connection with—

• (a) the establishment of a revenue collection counterparty;

• (b) making payments or providing financial assistance to a revenue collection counterparty;

• (c) making payments to a nuclear administrator or a relevant licensee nuclear company under or by virtue of Part 3.

• (3) Financial assistance or payments includes financial assistance or payments given subject to such conditions as may be determined by, or in accordance with arrangements made by, the Secretary of State; and such conditions may in particular in the case of a grant include conditions for repayment in specified circumstances.

• (4) In this section—

• “financial assistance” means grants, loans, guarantees or indemnities, or any other kind of financial assistance;

• “nuclear administrator” has the same meaning as in Part 3;

• “relevant licensee nuclear company” has the same meaning as in Part 1;

• “revenue collection counterparty” has the same meaning as in Part 2.

Minor and consequential provision

42

The Schedule contains minor and consequential provision.

Extent

43

• (1) The following provisions extend to England and Wales and Scotland—

• (a) Parts 1 to 3;

• (b) section 42 (including the Schedule).

• (2) Section 40 extends to England and Wales and Northern Ireland.

• (3) The following provisions extend to England and Wales, Scotland and Northern Ireland—

• (a) section 41;

• (b) this section and sections 44 and 45.

Commencement

44

• (1) The following provisions come into force on the day on which this Act is passed—

• (a) in Part 1, sections 1 to 5,11, 13 and 14;

• (b) section 16;

• (c) Part 3 (for the purposes of making rules under section 411 of the Insolvency Act 1986 Act as applied by section 159(3) of the Energy Act 2004 and section 33(1) of this Act);

• (d) section 40;

• (e) sections 41 and 43, this section and section 45.

• (2) The following provisions come into force at the end of the period of 2 months beginning with the day on which this Act is passed—

• (a) in Part 1, sections 6 to 10 and 12;

• (b) Part 2 (other than section 16);

• (c) Part 3 (except as mentioned in subsection (1)(c));

• (d) section 42 (including the Schedule).

Short title

45

This Act may be cited as the Nuclear Energy (Financing) Act 2022.

SCHEDULE

Electricity Act 1989

1

• (1) The Electricity Act 1989 is amended as follows.

• (2) In section 3A (principal objective and general duties of the Secretary of State and the Authority), in subsection (2)(b), for “or Part 2 of the Energy Act 2013” substitute “, Part 2 of the Energy Act 2013 or the Nuclear Energy (Financing) Act 2022”.

• (3) In section 6 (licences authorising supply, etc)—

• (a) after subsection (6C) insert—

(6D) The Authority may, with the consent of a relevant licensee nuclear company (within the meaning of Part 1 of the Nuclear Energy (Financing) Act 2022 (nuclear energy generation projects: regulated asset base model)), modify terms included in the company’s generation licence.

;

• (b) in subsection (7), for “or (6B)” substitute “, (6B) or (6D)”.

Utilities Act 2000

2

• (1) The Utilities Act 2000 is amended as follows.

• (2) In section 33 (standard conditions of electricity licences), in subsection (1)—

• (a) omit the “or” after paragraph (g), and

• (b) for the paragraphs after paragraph (g) substitute—

(h) under section 6 of the Smart Meters Act 2018, (i) under section 1 or 10 of the Domestic Gas and Electricity (Tariff Cap) Act 2018, or (j) under the Nuclear Energy (Financing) Act 2022.

• (3) In section 105 (general restrictions on disclosure of information)—

• (a) in subsection (1), after “2018” insert “or the Nuclear Energy (Financing) Act 2022”;

• (b) in subsection (3), after paragraph (azb) insert—

(azc) it is made for the purpose of facilitating the performance of any functions of the Authority under or by virtue of the Nuclear Energy (Financing) Act 2022;

.

Energy Act 2004

3

In section 137 of the Energy Act 2004 (new standard conditions for transmission licences), in subsection (3)—

• (a) omit the “or” after paragraph (e), and

• (b) after paragraph (f) insert

or (g) under the Nuclear Energy (Financing) Act 2022,

.

Consequential repeals

4

The following provisions are repealed—

• (a) section 6(10)(b) of the Smart Meters Act 2018;

• (b) section 11(2) of the Domestic Gas and Electricity (Tariff Cap) Act 2018.

Key definitions for Part 1

Designation of nuclear company

Designation: procedure

Expiry of designation

Revocation or lapse of designation

Licence modifications: designated nuclear companies

Licence modifications: relevant licensee nuclear companies

Procedure etc relating to modifications under section 6 or 7

Expiry of modifications made under section 6

Decisions relating to allowed revenue of relevant licensee nuclear company: appeals to CMA

Provision of information to the Secretary of State

Provision of information to or by the Authority

Sensitive material

Interpretation of Part 1

Regulations about revenue collection contracts

Designation of a revenue collection counterparty

Duties of a revenue collection counterparty

Direction to offer to contract

Supplier obligation

Payments to electricity suppliers

Application of sums held by a revenue collection counterparty

Enforcement

Information and advice

Functions of the Authority

Consultation

Revenue collection counterparties: transfer schemes

Modification of transfer schemes

Shadow directors, etc

Licence modifications

Interpretation of Part 2

Relevant licensee nuclear company administration orders

Objective of a relevant licensee nuclear company administration

Conduct of administration, transfer schemes, etc

Licence modifications: relevant licensee nuclear company administration

Procedure etc relating to modifications under section 35

Modification under the Enterprise Act 2002

Power to make further modifications of insolvency legislation

Interpretation of Part 3

Decommissioning of nuclear sites: bodies corporate not “associated”

Financial provision

Minor and consequential provision

Extent

Commencement

Short title

Electricity Act 1989

Utilities Act 2000

Energy Act 2004

Consequential repeals

Editorial notes

[^key-2e8353c3fb83662af45619a225a4cf67]: S. 1 in force at Royal Assent, see s. 44(1)(a)

[^key-0c709ba6fa2c4669844673f4e4aa8516]: S. 2 in force at Royal Assent, see s. 44(1)(a)

[^key-140a19cc806d1218897f69f8606c41b3]: S. 3 in force at Royal Assent, see s. 44(1)(a)

[^key-dd8a5413e1dbbf7688677a07e8634181]: S. 4 in force at Royal Assent, see s. 44(1)(a)

[^key-c2a5461f2ad46fc0bcbdc31f8a91e8bc]: S. 5 in force at Royal Assent, see s. 44(1)(a)

[^key-11713337b405553fca217e055048ff14]: S. 11 in force at Royal Assent, see s. 44(1)(a)

[^key-af466dbbfa961def619474bf25d9dfd5]: S. 13 in force at Royal Assent, see s. 44(1)(a)

[^key-4a0d1a77ac61fcca982d663c35a8a0a9]: S. 14 in force at Royal Assent, see s. 44(1)(a)

[^key-e5b08658e32f32792fe7f01274de3328]: S. 16 in force at Royal Assent, see s. 44(1)(b)

[^key-98e75406b2e5becfed2d10ff3a9d9ff1]: S. 31 in force at Royal Assent for specified purposes, see s. 44(1)(c)

[^key-223fb4c1e679e3c15d273bfbe2f2fe1e]: S. 32 in force at Royal Assent for specified purposes, see s. 44(1)(c)

[^key-56b2b7d02939a841b91924cad0aa6b2c]: S. 33 in force at Royal Assent for specified purposes, see s. 44(1)(c)

[^key-70eec457302f387fcfeee0e9cebcf2a0]: S. 34 in force at Royal Assent for specified purposes, see s. 44(1)(c)

[^key-7bdedf8d7b61aabf5a582c2ea8646cee]: S. 35 in force at Royal Assent for specified purposes, see s. 44(1)(c)

[^key-e0926c651741b2c31b30963e18a75e89]: S. 36 in force at Royal Assent for specified purposes, see s. 44(1)(c)

[^key-2385d7c86fb2b9f7ca689b8f583f19db]: S. 37 in force at Royal Assent for specified purposes, see s. 44(1)(c)

[^key-41072d9695cffbbed666e9c79e1e2260]: S. 38 in force at Royal Assent for specified purposes, see s. 44(1)(c)

[^key-baa80feea4b442a166bd8cd24204845e]: S. 39 in force at Royal Assent for specified purposes, see s. 44(1)(c)

[^key-20b5adf437f8f7e10e1ed8c0ca7af69b]: S. 40 in force at Royal Assent, see s. 44(1)(d)

[^key-281570174389899474623312792d0d68]: S. 41 in force at Royal Assent, see s. 44)(1)(e)

[^key-a8ead5f61eb6c7cce8796ce23397caef]: S. 43 in force at Royal Assent, see s. 44(1)(e)

[^key-e542cb731cb2b514ddfb4252e4e1e7b4]: S. 44 in force at Royal Assent, see s. 44(1)(e)

[^key-885a56c19a5c46aadfbc4a9b45ff2744]: S. 45 in force at Royal Assent, see s. 44(1)(e)

[^key-b24c886b62dbc5bddcc0b5f68dc5d6e8]: S. 6 in force at 1.6.2022, see s. 44(2)(a)

[^key-68fcba420438115a51c83c372c62f770]: S. 7 in force at 1.6.2022, see s. 44(2)(a)

[^key-c667d35b9f288ae18741ea4687cb188a]: S. 8 in force at 1.6.2022, see s. 44(2)(a)

[^key-7de477e2c82320614906969249d3af50]: S. 9 in force at 1.6.2022, see s. 44(2)(a)

[^key-7f9fd99e6df041e16d82b5e6dfc94bae]: S. 10 in force at 1.6.2022, see s. 44(2)(a)

[^key-9ebe35dfe7e703013dba924281f7ab38]: S. 12 in force at 1.6.2022, see s. 44(2)(a)

[^key-ddd61f5a0494db00d885a4f8158cfb5d]: S. 15 in force at 1.6.2022, see s. 44(2)(b)

[^key-2ea18ee21aaab1fab0e5af002be78c2f]: S. 17 in force at 1.6.2022, see s. 44(2)(b)

[^key-da34bb6b5c30b9748c9bb556b0945cc9]: S. 18 in force at 1.6.2022, see s. 44(2)(b)

[^key-852c7d5c41f880a59709e37fd25d2bf9]: S. 19 in force at 1.6.2022, see s. 44(2)(b)

[^key-875ff69e3f49058c4673e283fd4b1a5b]: S. 20 in force at 1.6.2022, see s. 44(2)(b)

[^key-3fdbd039fe59f671ad21ea0d6bfdb29d]: S. 21 in force at 1.6.2022, see s. 44(2)(b)

[^key-80d1e7e0ecdbd0be15ee773fd1b4d44b]: S. 22 in force at 1.6.2022, see s. 44(2)(b)

[^key-7a96bce7341563487c3dcb5875103662]: S. 23 in force at 1.6.2022, see s. 44(2)(b)

[^key-b882c9c8bdec7638bbdcce741bca0a67]: S. 24 in force at 1.6.2022, see s. 44(2)(b)

[^key-1eae4a042a73ccce822e8652169d21d7]: S. 25 in force at 1.6.2022, see s. 44(2)(b)

[^key-309381cde8908d060d42e9a7be07a2fd]: S. 26 in force at 1.6.2022, see s. 44(2)(b)

[^key-1bb4073d1feb4ae6a204d2372bbe46c8]: S. 27 in force at 1.6.2022, see s. 44(2)(b)

[^key-6152748aa8099d1b0e38e81993f985d0]: S. 28 in force at 1.6.2022, see s. 44(2)(b)

[^key-4d3cd08f3fd5184a4acc1d73f52bdcdb]: S. 29 in force at 1.6.2022, see s. 44(2)(b)

[^key-564344dada742dc4accfe41fad6d1ac2]: S. 30 in force at 1.6.2022, see s. 44(2)(b)

[^key-86c469e5bcec2666e6bd72c7698e222a]: S. 31 in force at 1.6.2022 in so far as not already in force, see s. 44(2)(c)

[^key-01e540a7a01c796c31693d1019f93f79]: S. 32 in force at 1.6.2022 in so far as not already in force, see s. 44(2)(c)

[^key-83367d468df5f6c3c5653c1ec2c179b1]: S. 33 in force at 1.6.2022 in so far as not already in force, see s. 44(2)(c)

[^key-17d3861352c56b8f2535a1cccd60f49a]: S. 34 in force at 1.6.2022 in so far as not already in force, see s. 44(2)(c)

[^key-0484abf2272a97387c7df9ec03c14d0b]: S. 35 in force at 1.6.2022 in so far as not already in force, see s. 44(2)(c)

[^key-04f433610d4210d22ee77fc48f8791fb]: S. 36 in force at 1.6.2022 in so far as not already in force, see s. 44(2)(c)

[^key-de451ab87735435feba6234e0ef775f8]: S. 37 in force at 1.6.2022 in so far as not already in force, see s. 44(2)(c)

[^key-e6ca8d1ebac8c9341902ce9292035132]: S. 39 in force at 1.6.2022 in so far as not already in force, see s. 44(2)(c)

[^key-9188cceffc8d63d872c8bef24ee69a6c]: S. 42 in force at 1.6.2022, see s. 44(2)(d)

[^key-4d3aae2ed0402cb0f967bd89db695f69]: Sch. para. 1 in force at 1.6.2022, see s. 44(2)(d)

[^key-ce2ed04cf6e639c4ae05c47dd344e83e]: Sch. para. 2 in force at 1.6.2022, see s. 44(2)(d)

[^key-9b4d4aa60f9cff341a408e19d08477e9]: Sch. para. 3 in force at 1.6.2022, see s. 44(2)(d)

[^key-dab940477339006aa2021bb096aa0ed6]: Sch. para. 4 in force at 1.6.2022, see s. 44(2)(d)