Energy Bill

House of Commons

Session 2013 - 14
Internet Publications
Other Bills before Parliament

Energy Bill

Energy Bill
Schedule 7 — The Office for Nuclear Regulation
131

      (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
in the exercise of a regulatory function in a particular case—
5
(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)
An authorisation under this paragraph—
10
(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
writing.
15
      (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
the performance of any of its functions.
20
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
functions as such ONR officers.
25
      (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
the person’s position as an ONR officer.
30
      (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
indemnify its members or members of staff or persons appointed by
35
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
which the person is ordered to pay);
40
“ONR officer” means—
(a)
an inspector appointed under Schedule 8;

Energy Bill
Schedule 7 — The Office for Nuclear Regulation
132

(b)
an enforcing officer appointed by the ONR under section
61(3) of the Fire (Scotland) Act 2005 (asp. 5) (enforcing
authorities);
(c)
an inspector appointed by the ONR under article 26(1) of the
Regulatory Reform (Fire Safety) Order 2005 (S.I. 2005/1541)
5
(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
insurance);
10
“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
of the kind in question;
15
(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)
It is the duty of the ONR—
20
(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
Treasury, may direct;
25
(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
on the statement and must lay copies of the statement and of the report on it
30
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
have regard, in carrying out its functions.
35
      (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)
The first proposal for the ONR’s strategy must be submitted to the Secretary
40
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)
must do so—
45

Energy Bill
Schedule 7 — The Office for Nuclear Regulation
133

(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)
The ONR—
5
(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,
with or without modifications.
10
      (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)
must prepare, for each financial year, a plan for the performance
15
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)
The ONR must submit the proposed annual plan and any revision of it to the
20
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
modifications the ONR’s annual plan or any revision of it.
25
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)
The report for a financial year must contain—
30
(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)
act in accordance with its strategy in force during the year,
35
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
section 74(2) (provision of services or facilities).
40
Laying and publication
25    (1)
This paragraph applies to—

Energy Bill
Schedule 7 — The Office for Nuclear Regulation
134

(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)
a report made to the Secretary of State under paragraph 24.
5
      (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
excluded from that copy in accordance with sub-paragraph (4).
10
      (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)
The ONR must arrange for a relevant document to be published in the form
15
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
purpose of enabling the ONR to perform its functions.
20
      (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
limit.
25
      (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)
less than £35 million, or
30
(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)
The ONR may do anything which is calculated to facilitate, or is conducive
35
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)
In this Part of this Act “financial year” means a period of 12 months ending
40
with 31st March.

Energy Bill
Schedule 8 — Inspectors
Part 1 — Appointment and powers of inspectors
135

      (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
years as may be specified in the direction.
5
Schedule 8
Section 66

Inspectors
Part 1
Appointment and powers of inspectors
Appointment of inspectors
10
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
authorises the person to carry out.
15
      (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)
References in this Schedule to carrying into effect the relevant statutory
20
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
exercise any relevant power.
25
      (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
exercise any relevant powers may be varied by the ONR by a further
30
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)
In this Part, “relevant power” means a power conferred by any of the
35
relevant statutory provisions on an inspector if and so far as so authorised.

Energy Bill
Schedule 8 — Inspectors
Part 2 — Powers exercisable by inspectors authorised by instrument of appointment: improvement notices and prohibition notices
136

      (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
Powers exercisable by inspectors authorised by instrument of appointment:
5
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)
has contravened one or more of those provisions in circumstances
10
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)
the contravention, or
15
(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)
state that the inspector is of the opinion mentioned in sub-paragraph
20
(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)
In this paragraph “applicable provision” means—
25
(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
nuclear security purposes or nuclear safeguards purposes, or
30
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.
Prohibition notices
35
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
control of a person will, as so carried on, involve a risk of serious
40
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

Energy Bill
Schedule 8 — Inspectors
Part 2 — Powers exercisable by inspectors authorised by instrument of appointment: improvement notices and prohibition notices
137

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-
paragraph (3)(c).
5
      (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
case may be, will give rise to the risk mentioned in that sub-
10
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)
specify the provision or provisions in question, and
15
(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)
In this paragraph—
20
“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).
Improvement and prohibition notices: supplementary
25
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)
Any such directions—
30
(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)
any of the applicable provisions applies to a building or any matter
35
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.

For this purpose “applicable provision” has the same meaning as in
40
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)
current new-build requirements, or
45