Nuclear Energy (Financing) Act 2022

35 Licence modifications: relevant licensee nuclear company administration E+W+S

(1) The Secretary of State may modify—

(a) a condition of a relevant licensee nuclear company’s relevant licence;

(b) a term of a relevant licensee nuclear company’s relevant licence.

(2) The Secretary of State may exercise the power under subsection (1) only—

(a) if an RLNC administration order is in force in relation to the relevant licensee nuclear company, and

(b) for the purpose of furthering the objective of a relevant licensee nuclear company administration.

(3) When exercising the power under subsection (1), the Secretary of State must have regard to—

(a) the duties of the Secretary of State under sections 1 and 4(1)(b) of the Climate Change Act 2008 (carbon targets and budgets);

(b) the interests of existing and future consumers of electricity, including their interests in relation to the cost and security of supply of electricity;

(c) costs, expenditure or liabilities of any description that the relevant licensee nuclear company may reasonably be expected to incur in carrying out its activities;

(d) the need to secure that the relevant licensee nuclear company is able to finance its activities;

(e) the need to secure that the relevant licensee nuclear company has appropriate incentives in relation to the carrying out of its activities;

(f) such other matters as the Secretary of State considers appropriate.

(4) Modifications made under subsection (1)(a) may include, for example—

(a) provision about the revenue that the relevant licensee nuclear company may receive in respect of its activities;

(b) provision about how the relevant licensee nuclear company’s revenue referred to in paragraph (a) is to be calculated;

(c) provision about the amounts that the relevant licensee nuclear company is entitled to receive, or is required to pay, under any revenue collection contract (within the meaning of Part 2) to which it is a party;

(d) provision requiring the relevant licensee nuclear company to co-operate with the Authority and to provide such information and assistance to the Authority as the Authority may require for the purposes of carrying out any of its functions;

(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.

Commencement Information

I1 S. 35 in force at Royal Assent for specified purposes, see s. 44(1)(c)

I2 S. 35 in force at 1.6.2022 in so far as not already in force, see s. 44(2)(c)