Energy Bill [HL]

House of Commons

Session 2003 - 04
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Energy Bill [HL]

Energy Bill [HL]
Part 1 — The Civil Nuclear Industry
Chapter 1 — Nuclear decommissioning
20

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Designation as a related site for the purposes of s. 18
(1)
A direction designating a contaminated site—
(a)
may specify that the site is to be treated for the purposes of section 18
as a related site; and
(b)
if it does so, must specify the installation, site or facility by reference to
5
which the Secretary of State is satisfied as mentioned in subsection
(2)(a).
(2)
A direction must not specify that a site is to be treated as a related site unless—
(a)
the Secretary of State is satisfied that it has become contaminated
(whether radioactively or chemically) as a result of nuclear activities in
10
or on a particular installation, site or facility;
(b)
that installation, site or facility was at the time of the contamination, or
subsequently became, a nuclear installation, a principal nuclear site or
an NDA facility;
(c)
the installation, site or facility is also designated (whether by that
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direction or as a consequence of a previous direction); and
(d)
the person with control of that installation, site or facility—
(i)
is a Crown appointee, the UKAEA, a publicly owned company
or the NDA itself; or
(ii)
has consented to the specification of the installation, site or
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facility for the purposes of subsection (1)(b).
(3)
On the giving by the Secretary of State of a direction specifying that a site is to
be treated as a related site, he must send a copy of the direction to every person
with control of an installation, site or facility by reference to which it is to be so
treated.
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(4)
For the purposes of this section something is contaminated as a result of
nuclear activities in or on a particular installation, site or facility if the
contamination (whenever occurring), or any of it, is the direct or indirect result
of one or more of the following—
(a)
activities carried on in or on that installation, site or facility;
30
(b)
the storage or disposal of any matter or substance in or on that
installation, site or facility;
(c)
an incident occurring in or on that installation, site or facility;
(d)
the discharge of anything from that installation, site or facility;
(e)
the transportation of hazardous material to or from that installation,
35
site or facility;
(f)
an incident affecting hazardous material being transported to or from
that installation, site or facility.
20
Duty to comply with directions under s. 18
(1)
The duty of a person to whom a direction is given under section 18 to comply
40
with that direction is a duty owed to the NDA, and to no one else.
(2)
That duty is to be enforceable by the NDA in civil proceedings—
(a)
for an injunction or interdict;
(b)
for specific performance of a statutory duty under section 45 of the
Court of Session Act 1988 (c. 36); or
45
(c)
for any other appropriate remedy or relief.

Energy Bill [HL]
Part 1 — The Civil Nuclear Industry
Chapter 1 — Nuclear decommissioning
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(3)
That duty is subject to the obligation of the NDA to discharge its financial
responsibilities under section 21.
(4)
A person with control of an installation, site or facility is not to be subject to that
duty to the extent that he is relieved of it by the provisions of an agreement—
(a)
between the NDA and that person; or
5
(b)
between the NDA and a body corporate of which that person is a
subsidiary.
(5)
The Secretary of State may by order provide, in the case of an installation, site
or facility the person with control of which is a Crown appointee, that the
Crown appointee is not to be subject, to the extent specified in the order, to the
10
duty to comply with directions under section 18.
(6)
An order for the purposes of subsection (5) is subject to the negative resolution
procedure.
Financial provisions
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Financial responsibilities of NDA
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(1)
The NDA’s responsibility for securing—
(a)
the decommissioning or operation of an installation or facility to which
this section applies, or
(b)
the cleaning-up of a site to which this section applies, or of a related site,

includes the financial responsibility for the decommissioning or operation of
20
the installation or facility, or for the cleaning-up.
(2)
This section applies to an installation, site or facility which becomes a
designated installation, site or facility at a time when the person with control
of it is—
(a)
a Crown appointee;
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(b)
the UKAEA;
(c)
a wholly-owned subsidiary of the UKAEA;
(d)
any other publicly owned company which was so owned on 4th July
2002; or
(e)
a wholly-owned subsidiary of such a company.
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(3)
Where—
(a)
the NDA has financial responsibility for decommissioning, operating
or cleaning up an installation, site or facility, and
(b)
a person other than the NDA is the person with control of it,

that other person is not to be, or to be capable of becoming, liable to meet any
35
of the costs of doing the things that are required to be secured by the NDA in
the discharge of its responsibilities in relation to that installation, site or facility.
(4)
Accordingly, where the NDA has the financial responsibility in the case of an
installation, site or facility—
(a)
it must not impose charges on the person with control of the
40
installation, site or facility in respect of anything mentioned in
subsection (3);
(b)
it must meet the costs of the doing by that person of anything that he is
authorised or required to do by virtue of section 17;

Energy Bill [HL]
Part 1 — The Civil Nuclear Industry
Chapter 1 — Nuclear decommissioning
22

(c)
it must also meet the costs of the performance by him of his duty to
comply with directions under section 18; and
(d)
that person is not to be required for any purpose to make, or to continue
to make, financial provision for meeting costs which fall, by virtue of its
financial responsibility, to be met by the NDA.
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(5)
Nothing in so much of this section as—
(a)
restricts the extent to which a person is, or may become, liable to meet
any costs in relation to a site, installation or facility, or
(b)
requires any costs in relation to an installation, site or facility to be
reimbursed or otherwise met by the NDA,
10

is to be construed as restricting the extent to which the person with control of
the installation, site or facility may be or become subject, in relation to a person
other than the NDA, to the liability or obligation in respect of which the costs
arise.
(6)
It shall be the duty of the NDA for the purpose of discharging its financial
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responsibilities to make all such arrangements as it thinks fit for securing that
the person with control of the installation, site or facility is able to meet, as they
become due, all his liabilities to persons other than the NDA in respect of
matters for which the NDA has financial responsibility or that those liabilities
are otherwise discharged.
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(7)
It shall also be the duty of the NDA to make all such arrangements as it thinks
fit for securing that amounts paid under this section to that person include
such sums (if any) as the NDA considers it appropriate to pay by way of
incentives to that person to discharge his duty to comply with directions under
section 18 in the manner that the NDA thinks most effective.
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(8)
The NDA is to be taken to have discharged its responsibility for meeting costs
under this section if it is satisfied that those costs—
(a)
have been met by another person directly or indirectly out of money
provided by Parliament; or
(b)
are to be so met.
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(9)
The preceding provisions of this section have effect in relation to an
installation, site or facility subject to the terms of—
(a)
any agreement between the NDA and the person with control of the
installation, site or facility; or
(b)
any agreement between the NDA and a body corporate of which that
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person is a subsidiary.
(10)
The NDA’s financial responsibilities under this section are in addition to its
financial responsibilities apart from this section.
(11)
In this section “related site” has the same meaning as in section 18.
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Expenditure and receipts of NDA
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(1)
The Secretary of State may make grants to the NDA.
(2)
Grants made under this section are to be on such terms as the Secretary of State
may determine.
(3)
The NDA must pay to the Secretary of State all sums received by it otherwise
than under subsection (1).
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Energy Bill [HL]
Part 1 — The Civil Nuclear Industry
Chapter 1 — Nuclear decommissioning
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(4)
The Secretary of State must pay sums received by him under subsection (3) into
the Consolidated Fund.
(5)
In determining—
(a)
whether to make a grant under this section to the NDA, and
(b)
the amount of such a grant,
5

the Secretary of State must have regard, in particular, to the extent to which he
considers that the NDA should exercise its power to make grants or loans of
the kind mentioned in section 10(2)(c) in order to mitigate the effects of the
cessation (whether before or after designation) of the operation of a designated
installation.
10
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Borrowing by the NDA
(1)
The NDA has no power to borrow money except in accordance with this
section.
(2)
The NDA may borrow from the Secretary of State, and the Secretary of State
may lend to the NDA, sums in sterling that it requires for or in connection with
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the carrying out of its functions.
(3)
Where a loan is made to the NDA by the Secretary of State—
(a)
the loan must be repaid to him at such times and by such methods as
he may determine; and
(b)
interest on the loan must be paid to him at such rates and at such times
20
as he may determine;

and nothing in section 22(3) requires the repayment of sums received by way
of such a loan otherwise than in accordance with a determination under this
subsection.
(4)
The NDA may also borrow temporarily (by overdraft or otherwise) from
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persons other than the Secretary of State sums in sterling that it requires for or
in connection with the carrying out of its functions.
(5)
The consent of the Secretary of State is required for borrowing under
subsection (4).
(6)
The approval of the Treasury is required—
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(a)
for a loan to the NDA by the Secretary of State;
(b)
for a determination by the Secretary of State under subsection (3); and
(c)
for a consent by the Secretary of State to any borrowing under
subsection (4).
(7)
The powers conferred by this section are subject to section 24.
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24
Limit on NDA borrowing
(1)
The NDA may not borrow if the effect would be—
(a)
to take the aggregate amount mentioned in subsection (2) over its
borrowing limit; or
(b)
to increase the amount by which the aggregate amount so outstanding
40
exceeds that limit.
(2)
That amount is the aggregate of—

Energy Bill [HL]
Part 1 — The Civil Nuclear Industry
Chapter 1 — Nuclear decommissioning
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(a)
amounts outstanding from the NDA in respect of the principal of sums
borrowed by the NDA; and
(b)
the amount of every outstanding liability of the NDA that is a liability
to which it is subject by virtue of a nuclear transfer scheme and is a
liability in respect of the principal of a sum borrowed by another person
5
before the transfer took effect.
(3)
The NDA’s borrowing limit is £2,000 million.
(4)
The Secretary of State may by order increase the NDA’s borrowing limit.
(5)
An order under subsection (4) shall not be made unless a draft of the order has
been—
10
(a)
laid before Parliament; and
(b)
approved by a resolution of the House of Commons.
(6)
The reference in this section to a nuclear transfer scheme includes a reference
to a modification agreement (within the meaning of Schedule 5) in relation to
such a scheme.
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Government guarantees for NDA borrowing
(1)
The Secretary of State may guarantee—
(a)
the repayment of the principal of any sum borrowed by the NDA from
a person other than the Secretary of State;
(b)
the payment of interest on such a sum; and
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(c)
the discharge of any other financial obligation of the NDA in
connection with the borrowing of such a sum.
(2)
The Secretary of State may give a guarantee under this section in such manner,
and on such terms, as he thinks fit.
(3)
As soon as practicable after giving a guarantee under this section, the Secretary
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of State must lay a statement of the guarantee before Parliament.
(4)
If sums are paid out by the Secretary of State under a guarantee given under
this section, the NDA must pay him—
(a)
such amounts in or towards the repayment to him of those sums as he
may direct; and
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(b)
interest, at such rates as he may direct, on amounts outstanding under
this subsection.
(5)
Payments to the Secretary of State under subsection (4) must be made at such
times, and in such manner, as he may from time to time direct.
(6)
Where a sum has been paid out by the Secretary of State under a guarantee
35
given under this section, he must lay a statement relating to that sum before
Parliament—
(a)
as soon as practicable after the end of the financial year in which that
sum is paid out; and
(b)
as soon as practicable after the end of each subsequent relevant
40
financial year.
(7)
In relation to a sum paid out under a guarantee, a financial year is a relevant
financial year for the purposes of subsection (6) unless—

Energy Bill [HL]
Part 1 — The Civil Nuclear Industry
Chapter 1 — Nuclear decommissioning
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(a)
before the beginning of that year, the whole of that sum has been repaid
to the Secretary of State under subsection (4); and
(b)
the NDA is not at any time during that year subject to a liability to pay
interest on amounts that became due under that subsection in respect
of that sum.
5
(8)
The approval of the Treasury is required—
(a)
for the giving of a guarantee under this section; and
(b)
for the giving by the Secretary of State of a direction under subsection
(4) or (5).
(9)
The Secretary of State must pay sums received by him by virtue of subsection
10
(4) into the Consolidated Fund.
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Accounts of NDA
(1)
The NDA must—
(a)
keep proper accounts and proper accounting records; and
(b)
in respect of each of its accounting years, prepare a statement of its
15
accounts.
(2)
A statement of accounts prepared under this section must give a true and fair
view of—
(a)
the income and expenditure of the NDA for the accounting year in
question; and
20
(b)
its state of affairs.
(3)
Such a statement of accounts must comply with every requirement which has
been notified by the Secretary of State to the NDA.
(4)
Those requirements may include, in particular, requirements relating to—
(a)
the information to be contained in the statement;
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(b)
the manner in which that information is to be presented; or
(c)
the methods and principles according to which the statement is to be
prepared.
(5)
The approval of the Treasury is required for the imposition of a requirement
under subsection (3).
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(6)
The accounts of the NDA relating to each of its accounting years, including the
statement of accounts prepared for the year under this section, must be audited
by the Comptroller and Auditor General.
(7)
The Comptroller and Auditor General must send a copy of his report on what
is audited to the NDA.
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(8)
The NDA must send to the Secretary of State and to the Scottish Ministers, in
respect of each of its accounting years—
(a)
a copy of the accounts for that year that are required to be audited
under this section; and
(b)
a copy of the Comptroller and Auditor General’s report on those
40
accounts.
(9)
The NDA must comply with any directions given to it by the Secretary of State
about the times by which it must have complied with its obligations under
subsections (1)(b), (6) and (8).

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Part 1 — The Civil Nuclear Industry
Chapter 1 — Nuclear decommissioning
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(10)
The Secretary of State must lay a copy of whatever is sent to him under
subsection (8) before Parliament.
(11)
The Scottish Ministers must lay a copy of whatever is sent to them under
subsection (8) before the Scottish Parliament.
(12)
In this section—
5

“accounting records” includes all books, papers and other records of the
NDA relating to—
(a)
the accounts which it is required to keep; or
(b)
matters dealt with in those accounts;

“accounting year”, in relation to the NDA, means—
10
(a)
the NDA’s first accounting year; or
(b)
a financial year after the end of the NDA’s first accounting year;

“the NDA’s first accounting year” means—
(a)
where the NDA is established at the beginning of a financial
year, that financial year; and
15
(b)
in any other case, the period which begins with the day on
which the NDA is established and ends—
(i)
if no direction is given under sub-paragraph (ii), with 31st
March in the financial year current on that day; and
(ii)
if the Secretary of State so directs, with 31st March at the
20
end of the following financial year.
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Tax exemption for NDA activities
(1)
For the purposes of corporation tax—
(a)
trading income arising or accruing to the NDA or an NDA company
from the carrying on of exempt activities shall be disregarded in
25
computing the total profits of the NDA or that company; and
(b)
trading losses incurred by the NDA or an NDA company in the
carrying on of exempt activities shall be disregarded in determining the
amounts that may be set off under section 393 or 393A of the Income
and Corporation Taxes Act 1988 (c. 1) (trading losses) or surrendered as
30
trading losses for the purposes of section 403 of that Act (group relief).
(2)
Schedule 4 (which makes further provision for the purposes of the exemption
granted by this section) has effect.
(3)
Activities are exempt for the purposes of this section and Schedule 4 if they—
(a)
are activities carried on in connection with anything mentioned in
35
section 3(1); and
(b)
are specified for the purposes of this section in regulations made by the
Treasury.
(4)
In this section and Schedule 4 “NDA company” means—
(a)
a company the whole of the ordinary share capital in which is owned
40
directly or indirectly by the NDA; or
(b)
a company that is a relevant site licensee.
(5)
A company is a relevant site licensee for the purposes of subsection (4) if—
(a)
it is not a company falling within paragraph (a) of that subsection;