Energy Bill (HC Bill 135)

appropriate place insert—

• “Office for Nuclear Regulation.”

(3) The ONR must pay to the Minister for the Civil Service, at such times as that
Minister may direct, such sums as that Minister may determine in respect of
5the increase attributable to sub-paragraph (1) in the sums payable out of
money provided by Parliament under that Act.

Committees

16 (1) The ONR may establish committees, and any committee may establish sub-
committees.

(2) 10The members of a committee may include persons who are not members of
the ONR or the ONR’s staff (and the members of a sub-committee of a
committee may include persons who are not members of the committee or
members of the ONR or the ONR’s staff).

(3) The ONR may make arrangements for the payment of such remuneration,
15allowances and expenses as it considers appropriate to any person who—

(a) is a member of a committee or sub-committee, but

(b) is not a member of the ONR or of the ONR’s staff.

(4) Payments made by the ONR under sub-paragraph (3) are to be of such
amounts as may be determined by the Secretary of State.

20Procedure

17 (1) The ONR may make such provision as it considers appropriate to regulate—

(a) its own proceedings (including quorum), and

(b) the proceedings (including quorum) of its committees and sub-
committees.

(2) 25The ONR may, to any extent, permit any of its committees and sub-
committees to regulate their own proceedings (including quorum).

(3) The validity of any proceedings of the ONR is not affected by any vacancy
among the members or by any defect in the appointment of a member.

(4) The ONR must from time to time publish a summary of its rules and
30procedures.

Performance of functions

18 (1) The ONR may authorise—

(a) a member of the ONR,

(b) a member of the ONR’s staff,

(c) 35a health and safety inspector, or

(d) a committee of the ONR,

to do anything required or authorised to be done by the ONR (and such
authorisation may include authorisation to exercise the power conferred on
the ONR by this paragraph).

(2) The ONR must give an authorisation or authorisations under this paragraph
in respect of all its functions which consist of the exercise of a regulatory
function in a particular case.

(3) Only the following may be authorised under this paragraph to do anything
5in the exercise of a regulatory function in a particular case—

(a) a member of the ONR’s staff;

(b) a health and safety inspector;

(c) a committee of the ONR of which every member is a member of the
ONR’s staff or a health and safety inspector.

(4) 10An authorisation under this paragraph—

(a) may be general or specific;

(b) does not affect the ability of the ONR to exercise the function in
question.

(5) Any authorisations given by the ONR under this paragraph must be in
15writing.

(6) The ONR must publish any authorisations which it gives under this
paragraph.

Payment of allowances and expenses

19 The ONR may pay allowances or expenses to any person in connection with
20the performance of any of its functions.

Indemnities

20 (1) The ONR may, in the circumstances specified in sub-paragraph (2),
indemnify persons who are ONR officers against all or any part of any
liability which they incur in the execution, or purported execution, of their
25functions as such ONR officers.

(2) Those circumstances are that the ONR is satisfied that the person in question
honestly believed that the act giving rise to the liability—

(a) was within the person’s relevant powers, and

(b) was one that the person was required or entitled to do by virtue of
30the person’s position as an ONR officer.

(3) Sub-paragraph (1)—

(a) applies only so far as the ONR is not otherwise required to indemnify
ONR officers, and

(b) is not to be taken to affect any other powers that the ONR has to
35indemnify its members or members of staff or persons appointed by
it.

(4) In this paragraph—

• “liability” includes damages, costs and expenses (and a reference to
  liability incurred by a person includes a reference to any such sums
  40which the person is ordered to pay);

• “ONR officer” means—

  (a)

  an inspector appointed under Schedule 8;

  Energy BillPage 132

  (b)

  an enforcing officer appointed by the ONR under section
  61(3) of the Fire (Scotland) Act 2005 (asp. 5)2005 (asp. 5) (enforcing
  authorities);

  (c)

  an inspector appointed by the ONR under article 26(1) of the
  5Regulatory Reform (Fire Safety) Order 2005 (S.I. 2005/1541S.I. 2005/1541)
  (enforcement of Order);

  (d)

  a member of staff of the ONR who is authorised by the
  Secretary of State under section 4(2)(b) of the Employers’
  Liability (Compulsory Insurance) Act 1969 (certificates of
  10insurance);

• “relevant powers”—

  (a)

  in relation to a person within paragraph (a), (b) or (c) of the
  definition of “ONR officer”, means the powers which the
  person has in the capacity of an inspector or enforcing officer
  15of the kind in question;

  (b)

  in relation to a person within paragraph (d) of that definition
  means the person’s powers under the Employers’ Liability
  (Compulsory Insurance) Act 1969.

Accounts

21 (1) 20It is the duty of the ONR—

(a) to keep proper accounts and proper records in relation to the
accounts;

(b) to prepare in respect of each financial year a statement of accounts in
such form as the Secretary of State, with the approval of the
25Treasury, may direct;

(c) to send copies of the statement to the Secretary of State and the
Comptroller and Auditor General before the end of November next
following the financial year to which the statement relates.

(2) The Comptroller and the Auditor General must examine, certify and report
30on the statement and must lay copies of the statement and of the report on it
before Parliament.

Strategy

22 (1) The ONR must prepare a strategy for carrying out its functions, including
any general priorities it will apply, or principal objectives to which it will
35have regard, in carrying out its functions.

(2) The ONR must act in accordance with its strategy, or any revision of it,
approved under sub-paragraph (7).

(3) Before preparing or revising its strategy the ONR must consult such persons
as it considers it appropriate to consult.

(4) 40The first proposal for the ONR’s strategy must be submitted to the Secretary
of State within 8 months beginning with the day on which this paragraph
comes into force.

(5) The ONR—

(a) may review its strategy at any time, and

(b) 45must do so—

(i) within 5 years beginning with the day on which its strategy
is first published, and

(ii) within 5 years beginning with the most recent review of its
strategy.

(6) 5The ONR—

(a) may revise its strategy following a review under sub-paragraph (5),
and

(b) must submit any revision of its strategy to the Secretary of State.

(7) The Secretary of State may approve the ONR’s strategy, or any revision of it,
10with or without modifications.

(8) The Secretary of State must consult the ONR before approving with
modifications the ONR’s strategy or any revision of it.

Annual plan

23 (1) The ONR—

(a) 15must prepare, for each financial year, a plan for the performance
during that year of its functions (“the annual plan”), and

(b) may revise the annual plan.

(2) The ONR must take all reasonable steps to act in accordance with the annual
plan, or any revision of it, approved under sub-paragraph (4).

(3) 20The ONR must submit the proposed annual plan and any revision of it to the
Secretary of State.

(4) The Secretary of State may approve the annual plan and any revision of it
with or without modifications.

(5) The Secretary of State must consult the ONR before approving with
25modifications the ONR’s annual plan or any revision of it.

Reporting requirements of the ONR

24 (1) As soon as reasonably practicable after the end of each financial year, the
ONR must make a report to the Secretary of State on the performance of the
ONR’s functions during the year.

(2) 30The report for a financial year must contain—

(a) a general description of what the ONR has done in the exercise of its
functions during the year,

(b) a description of how, and the extent to which, what the ONR has
done during the year has enabled it to—

(i) 35act in accordance with its strategy in force during the year,
and

(ii) meet any objectives set out in its annual plan, and

(c) a description of any relevant services provided by the ONR during
the year to any person, whether or not in the United Kingdom, under
40section 74(2) (provision of services or facilities).

Laying and publication

25 (1) This paragraph applies to—

(a) the ONR’s strategy, and any revision of it, approved under
paragraph 22(7),

(b) the ONR’s annual plan, and any revision of it, approved under
paragraph 23(4), and

(c) 5a report made to the Secretary of State under paragraph 24.

(2) The documents mentioned in sub-paragraph (1) are referred to in this
paragraph as “relevant documents”.

(3) The Secretary of State must lay a copy of each relevant document before
Parliament, together with a statement as to whether any matter has been
10excluded from that copy in accordance with sub-paragraph (4).

(4) If it appears to the Secretary of State, after consultation with the ONR, that
the publication of any matter in a relevant document would be contrary to
the interests of national security, the Secretary of State may exclude that
matter from the copy of it as laid before Parliament.

(5) 15The ONR must arrange for a relevant document to be published in the form
in which it was laid before Parliament under sub-paragraph (3).

Payments and borrowing

26 (1) The Secretary of State must pay to the ONR such sums as are approved by
the Treasury and as the Secretary of State considers appropriate for the
20purpose of enabling the ONR to perform its functions.

(2) The ONR may, with the consent of the Secretary of State, borrow money.

(3) The ONR may not borrow money if the effect of the borrowing would be to
cause the aggregate amount outstanding in respect of the principal of sums
borrowed by the ONR to be, or to remain, in excess of the ONR’s borrowing
25limit.

(4) The ONR’s borrowing limit is £35 million.

(5) The Secretary of State may by order amend sub-paragraph (4) so as to
substitute, for the sum for the time being specified in that sub-paragraph, the
sum specified in the order, which must not be—

(a) 30less than £35 million, or

(b) greater than £80 million.

(6) Before making an order under this paragraph, the Secretary of State must
consult the ONR.

Supplementary powers

27 (1) 35The ONR may do anything which is calculated to facilitate, or is conducive
or incidental to, the performance of its functions.

(2) The power in sub-paragraph (1) is subject to any restrictions imposed by or
under any provision of any enactment.

Financial year

28 (1) 40In this Part of this Act “financial year” means a period of 12 months ending
with 31st March.

(2) But the first financial year of the ONR is—

(a) the period beginning with the date on which section 61 comes into
force and ending with the following 31st March, or

(b) if the Secretary of State so directs, such other period not exceeding 2
5years as may be specified in the direction.

Section 66

SCHEDULE 8 Inspectors

Part 1 Appointment and powers of inspectors

10Appointment of inspectors

1 (1) The ONR may appoint persons (referred to in this Part of this Act as
“inspectors”) to carry into effect the relevant statutory provisions.

(2) A person appointed as an inspector must be someone who appears to the
ONR to be suitably qualified to carry out the functions that the ONR
15authorises the person to carry out.

(3) The appointment of an inspector under this paragraph is to be on such terms
as the ONR may determine and may be ended by the ONR at any time.

(4) Any appointment of an inspector under this paragraph must be made by a
written instrument.

(5) 20References in this Schedule to carrying into effect the relevant statutory
provisions include in particular assisting the ONR to fulfil its functions
under the relevant statutory provisions.

Powers of inspectors

2 (1) An inspector’s instrument of appointment may authorise the inspector to
25exercise any relevant power.

(2) Authority to exercise a relevant power may be given—

(a) without restriction, or

(b) only to a limited extent or for limited purposes.

(3) The authority conferred by an inspector’s instrument of appointment to
30exercise any relevant powers may be varied by the ONR by a further
instrument in writing varying the instrument of appointment.

(4) For the purposes of this Schedule, an inspector is “authorised”, in relation to
a power, if and so far as the inspector is authorised by the instrument of
appointment to exercise the power.

(5) 35In this Part, “relevant power” means a power conferred by any of the
relevant statutory provisions on an inspector if and so far as so authorised.

(6) When exercising or seeking to exercise any relevant power, an inspector
must, if asked, produce the instrument of appointment (including any
instrument varying it) or a duly authenticated copy.

Part 2 5Powers exercisable by inspectors authorised by instrument of appointment:
improvement notices and prohibition notices

Improvement notices

3 (1) This paragraph applies where an inspector is of the opinion that a person—

(a) is contravening one or more applicable provisions, or

(b) 10has contravened one or more of those provisions in circumstances
that make it likely that the contravention will continue or be
repeated.

(2) The inspector may, if authorised, give the person a notice (an “improvement
notice”) requiring the person to remedy—

(a) 15the contravention, or

(b) as the case may be, the matters giving rise to the notice,

within the period specified in the notice.

(3) The improvement notice must—

(a) specify the applicable provision or provisions in question, and

(b) 20state that the inspector is of the opinion mentioned in sub-paragraph
(1), and why.

(4) The period specified under sub-paragraph (2) must end no earlier than the
period within which an appeal against the notice may be brought under
paragraph 6.

(5) 25In this paragraph “applicable provision” means—

(a) any of the relevant statutory provisions other than—

(i) a provision of the Nuclear Safeguards Act 2000, or

(ii) any provision of nuclear regulations identified in accordance
with section 58(10) (requirement for provisions made for
30nuclear security purposes or nuclear safeguards purposes, or
both, to be identified as such), or

(b) any condition attached to a nuclear site licence under section 4 of the
Nuclear Installations Act 1965 relating to a site in England, Wales or
Scotland.

35Prohibition notices

4 (1) This paragraph applies where an inspector is of the opinion that—

(a) relevant activities, as they are being carried on by or under the
control of a person, involve a risk of serious personal injury, or

(b) relevant activities which are likely to be carried on by or under the
40control of a person will, as so carried on, involve a risk of serious
personal injury.

(2) The inspector may, if authorised, give the person a notice (“a prohibition
notice”) directing that the activities to which the notice relates must not be

carried on by or under the control of the person unless the following have
been remedied—

(a) the matters specified in the notice under sub-paragraph (3)(b), and

(b) any associated contraventions of provisions specified under sub-
5paragraph (3)(c).

(3) A prohibition notice must—

(a) state that the inspector is of the opinion mentioned in sub-paragraph
(1);

(b) specify the matters which in the inspector’s opinion give, or, as the
10case may be, will give rise to the risk mentioned in that sub-
paragraph;

(c) where in the inspector’s opinion any of those matters involves or, as
the case may be, will involve a contravention of any applicable
provision—

(i) 15specify the provision or provisions in question, and

(ii) state that the inspector is of that opinion, and why.

(4) A prohibition notice takes effect—

(a) at the end of the period specified in the notice, or

(b) if the notice so specifies, immediately.

(5) 20In this paragraph—

• “applicable provision” has the same meaning as in paragraph 3;

• “relevant activities” means any activities in relation to which any
  applicable provision applies (or would apply if they were being
  carried on).

25Improvement and prohibition notices: supplementary

5 (1) In this paragraph “a notice” means an improvement notice or a prohibition
notice.

(2) A notice may (but need not) include directions as to the measures to be taken
to remedy any contravention or matter to which the notice relates.

(3) 30Any such directions—

(a) may be expressed by reference to any approved code of practice, and

(b) may afford the person to whom the notice is given a choice between
different ways of remedying the contravention or matter.

(4) Sub-paragraph (5) applies where—

(a) 35any of the applicable provisions applies to a building or any matter
connected with a building, and

(b) an inspector proposes to serve an improvement notice relating to a
contravention of that provision in connection with the building or
matter.

40For this purpose “applicable provision” has the same meaning as in
paragraph 3.

(5) The notice must not direct any measures to be taken to remedy the
contravention that are more onerous than any measures that would be
necessary to secure conformity with—

(a) 45current new-build requirements, or

(b) if the provision in question imposes specific requirements that are
more onerous than the requirements of any current new-build
requirements, those specific requirements.

(6) In sub-paragraph (5), “current new-build requirements”, in relation to a
5building, or matter connected with a building, means the requirements of
any building regulations for the time being in force to which the building or
matter would be required to conform if the relevant building were being
newly erected.

(7) In sub-paragraph (6), “building regulations”, in relation to Scotland, has the
10meaning given by section 1 of the Building (Scotland) Act 2003 (asp 8)2003 (asp 8).

(8) Where an improvement notice or a prohibition notice which is not to take
immediate effect has been given—

(a) the notice may be withdrawn by an inspector at any time before the
end of the period specified in it under paragraph 3(2) or 4(4)(a), and

(b) 15the period so specified may be extended or further extended by an
inspector at any time when an appeal against the notice is not
pending.

Appeal against improvement or prohibition notice

6 (1) In this paragraph, “a notice” means an improvement notice or a prohibition
20notice.

(2) A person to whom a notice is given may appeal within such period after the
notice is given as may be prescribed by regulations made by the Secretary of
State (“the prescribed period”).

(3) An appeal under this paragraph lies to an employment tribunal.

(4) 25On an appeal, the tribunal may—

(a) cancel the notice, or

(b) confirm it—

(i) in its original form, or

(ii) with such modifications as, in the circumstances, the tribunal
30considers appropriate.

(5) Where an appeal under this paragraph is brought against an improvement
notice within the prescribed period, the operation of the notice is suspended
until the appeal is withdrawn or finally disposed of.

(6) Where—

(a) 35an appeal under this paragraph is brought against a prohibition
notice within the prescribed period, and

(b) on the application of the appellant, the tribunal, so directs,

the operation of the notice is suspended from the time the direction is given
until the appeal is withdrawn or finally disposed of.

(7) 40One or more assessors may be appointed for the purposes of any
proceedings brought before an employment tribunal under this paragraph.

Improvement and prohibition notices: offences

7 (1) It is an offence to contravene any requirement or prohibition imposed by an
improvement notice or a prohibition notice.

(2) A person who commits an offence under this paragraph is liable—

(a) on summary conviction—

(i) to imprisonment for a term not exceeding 12 months (in
England and Wales and Scotland),

(ii) 5to a fine not exceeding £20,000, or

(iii) to both;

(b) on conviction on indictment—

(i) to imprisonment for a term not exceeding 2 years, or

(ii) to a fine, or

(iii) 10to both.

(3) In relation to an offence committed before the commencement of section
154(1) of the Criminal Justice Act 2003 (general limit on magistrates’ court’s
powers to imprison), the reference in sub-paragraph (2)(a)(i), as it has effect
in England and Wales, to 12 months is to be read as a reference to 6 months.

15Part 3 Other powers exercisable by inspector if authorised by instrument of
appointment

Power of entry

8 (1) An inspector may, if authorised, enter any premises which the inspector has
20reason to believe it is necessary for the inspector to enter for the relevant
purpose—

(a) at any reasonable time, or

(b) at any time, in a situation—

(i) which in the inspector’s opinion is or may be dangerous, or

(ii) 25in which, in the inspector’s opinion, delay would or might be
prejudicial to the nuclear security purposes.

(2) In relation to domestic premises, the power may be exercised only—

(a) in accordance with a warrant issued by a justice of the peace, or

(b) in a situation which in the inspector’s opinion is or may be
30dangerous.

(3) A justice of the peace may issue a warrant under sub-paragraph (2)(a) only
if satisfied, on the application of the inspector,—

(a) that—

(i) there are reasonable grounds to believe that a contravention
35of a relevant statutory provision is occurring on the premises,
or

(ii) the inspector has been refused consent to enter the premises
for the relevant purpose or there are reasonable grounds to
believe that such consent will be refused, and

(b) 40that it is reasonable in the circumstances to issue a warrant to the
inspector.

(4) The reference to premises in sub-paragraph (1) includes any ship outside the
United Kingdom or its territorial sea.

(5) For the purposes of this paragraph, “domestic premises” means premises
45used wholly or mainly as a private dwelling.