Energy Bill

House of Commons

Session 2007 - 08
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Energy Bill

Energy Bill
Part 3 — Decommissioning of energy installations
Chapter 1 — Nuclear sites: decommissioning and clean-up
41

Information
48
Provision of information and documents
(1)
This section applies where either Condition A or Condition B is satisfied.
(2)
Condition A is that a funded decommissioning programme has been
submitted to the Secretary of State under section 41 and the Secretary of State
5
has not yet decided whether to approve or reject it.
(3)
Condition B is that—
(a)
a modification of a programme, or of the conditions subject to which a
programme is approved, has been proposed in accordance with section
44,
10
(b)
the modification is not one to which regulations under section 46(1)
apply, and
(c)
the Secretary of State has not yet decided whether the modification
should be made.
(4)
The Secretary of State may by notice in writing require a person within
15
subsection (5) —
(a)
to produce documents, or documents of a description, specified in the
notice, or
(b)
to provide information, or information of a description, specified in the
notice.
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(5)
Those persons are—
(a)
the site operator;
(b)
any other person with obligations under the programme;
(c)
in a case where Condition A is satisfied, any body corporate associated
with the site operator and in relation to which the Secretary of State is
25
considering making a modification under section 42 which, if made,
would result in the body corporate having obligations under the
programme;
(d)
in a case where Condition B is satisfied, any person who would have
such obligations if the proposed modification were made.
30
(6)
A notice under subsection (4)—
(a)
must specify the period within which the documents or information are
to be provided or produced;
(b)
may, in the case of information, require it to be provided in a manner
or form specified in the notice.
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(7)
This section applies only to information and documents the provision or
production of which the Secretary of State considers necessary for the purpose
of making the decision referred to in subsection (2) or (3).
(8)
If at any time it appears to the Secretary of State that a person has failed to
comply with a notice under subsection (4), the Secretary of State may make an
40
application to the High Court under this section.
(9)
If, on an application under this section, the High Court decides that the person
has failed to comply with the notice, it may order the person to take such steps
as it directs for securing that the notice is complied with.

Energy Bill
Part 3 — Decommissioning of energy installations
Chapter 1 — Nuclear sites: decommissioning and clean-up
42

(10)
Where a nuclear site licence has been applied for, but not yet granted, in respect
of a site, references in this section to the site operator include references to the
person who has applied for a nuclear site licence in respect of the site.
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Power to review operation of programme
(1)
This section applies where a funded decommissioning programme has been
5
approved by the Secretary of State in relation to a site under section 42.
(2)
The Secretary of State may by notice in writing require information relating to
the operation of the programme from—
(a)
the site operator;
(b)
any other person who has obligations under the programme.
10
(3)
A notice under subsection (2) may be given only for the purpose of enabling
the Secretary of State to determine—
(a)
whether the programme is being complied with;
(b)
whether it will be possible for obligations under the programme arising
at a future date to be complied with;
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(c)
whether the programme makes prudent provision for the technical
matters (including the financing of the designated technical matters).
(4)
Subsection (5) applies if the Secretary of State determines (whether as a result
of information obtained under this section or otherwise)—
(a)
that the programme is not being complied with,
20
(b)
that it will not be possible for an obligation under the programme
arising at a future date to be complied with, or
(c)
that the programme does not make prudent provision for the matters
mentioned in subsection (3)(c).
(5)
The Secretary of State may by notice in writing require information from—
25
(a)
the site operator,
(b)
any other person who has obligations under the programme, or
(c)
any body corporate associated with the site operator,

for the purpose of enabling the Secretary of State to determine whether to make
a proposal, or the nature of any proposal to be made, under section 44 in
30
respect of the programme.
(6)
Where a notice under subsection (2) or (5) has been given, the Secretary of State may
require the site operator to pay to the Secretary of State such fee in respect of costs
incurred by the Secretary of State in obtaining advice in relation to the information as
may be determined in accordance with regulations under section 50.
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(7)
A fee under subsection (6) must be paid at a time determined in accordance
with regulations under section 50.
(8)
If at any time it appears to the Secretary of State that a person has failed to
comply with a notice under subsection (2) or (5), the Secretary of State may
make an application to the High Court under this section.
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(9)
If, on an application under this section, the High Court decides that the person
has failed to comply with the notice, it may order the person to take such steps
as it directs for securing that the notice is complied with.

Energy Bill
Part 3 — Decommissioning of energy installations
Chapter 1 — Nuclear sites: decommissioning and clean-up
43

Regulations and guidance
50
Nuclear decommissioning: regulations and guidance
(1)
The Secretary of State may make regulations about—
(a)
the preparation, content and implementation of funded
decommissioning programmes,
5
(b)
the modification of funded decommissioning programmes under
sections 44 to 47, and
(c)
the modification, under those sections, of the conditions subject to
which funded decommissioning programmes are approved.
(2)
Regulations under this section may, in particular, make provision—
10
(a)
about the technical matters in relation to sites to which section 41(2)
applies;
(b)
about the estimation of the costs likely to be incurred in connection
with the designated technical matters in relation to such sites, and
about the manner in which such estimates are to be verified (which may
15
include provision requiring verification by an independent third
party);
(c)
about the financing of those designated technical matters, including the
security to be provided for the performance of obligations imposed in
respect of those matters by virtue of programmes and the establishment
20
and maintenance, for the purposes of such security, of trusts or other
arrangements to hold and accumulate funds;
(d)
about payments to a site operator or another person from funds so held
or accumulated;
(e)
for information prescribed, or of a description prescribed, by the
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regulations to be supplied to the Secretary of State by persons with
obligations under programmes at such intervals, or on such occasions,
as may be so prescribed;
(f)
enabling the Secretary of State to charge a fee to a site operator in order to
recover the costs of obtaining advice in relation to information supplied in
30
accordance with regulations under paragraph (e);
(g)
about how fees payable under this Chapter are to be determined;
(h)
about when fees payable under this Chapter are to be paid.
(3)
Regulations under this section may include provision making it an offence to
contravene specified provisions of the regulations.
35
(4)
Where regulations under subsection (3) create an offence, they must also make
provision as to the mode of trial and punishment of offences; but—
(a)
any provision as to punishment on summary conviction must not
authorise a fine exceeding the statutory maximum or imprisonment,
and
40
(b)
any provision as to punishment on conviction on indictment must not
authorise imprisonment for a term exceeding 2 years.
(5)
The Secretary of State may publish guidance about—
(a)
the preparation, content, modification and implementation of funded
decommissioning programmes (including any matter mentioned in
45
subsection (2)(a) to (e));
(b)
the factors which the Secretary of State may take into account in
deciding whether or not—

Energy Bill
Part 3 — Decommissioning of energy installations
Chapter 1 — Nuclear sites: decommissioning and clean-up
44

(i)
to approve a programme,
(ii)
to approve a programme with modifications or subject to
conditions, or
(iii)
to make a proposed modification to a programme or the
conditions subject to which it is approved.
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(6)
Before making regulations or publishing guidance under this section, the
Secretary of State must consult—
(a)
the Health and Safety Executive,
(b)
the Environment Agency, and
(c)
the Department of the Environment in Northern Ireland,
10

in so far as the regulations or guidance relate to functions conferred on them
by or under an enactment.
(7)
Subsection (6) may be satisfied by consultation before, as well as by
consultation after, the commencement of this section or the passing of this Act.
(8)
The Secretary of State must lay before Parliament a copy of any guidance
15
published under this section.
(9)
Guidance under this section may make different provision for different cases
or circumstances.
51
Funded decommissioning programmes: verification of financial matters
(1)
Regulations under section 50 may make provision enabling the Secretary of
20
State to rely, in specified circumstances, on verification of financial matters by
an independent third party.
(2)
Regulations may, in particular, provide that for the purposes of the Secretary
of State’s functions under this Chapter, the Secretary of State may—
(a)
rely on estimates of costs verified by an independent third party in
25
accordance with the regulations;
(b)
rely on an independent third party’s assessment of the prudence or
otherwise of any provision made for the financing of the designated
technical matters.
Protection of decommissioning funds
30
52
Protection of security under approved programme
(1)
This section applies where, in relation to a site to which section 41 applies, any
security for the performance of obligations relating to the designated technical
matters has been provided by a person (“the security provider”) by way of a
trust or other arrangements, in accordance with an approved funded
35
decommissioning programme.
(2)
In this section a reference to “the protected assets” is a reference to the security,
and any property or rights in which it consists.
(3)
The manner in which, and purposes for which the protected assets are to be
applied and enforceable (whether in the event of the security provider’s
40
insolvency or otherwise) is to be determined in accordance with the trust or
other arrangements.

Energy Bill
Part 3 — Decommissioning of energy installations
Chapter 1 — Nuclear sites: decommissioning and clean-up
45

(4)
For the purposes of subsection (3), no regard is to be had to so much of the
Insolvency Act 1986 (c. 45), the Insolvency (Northern Ireland) Order 1989 (S.I.
1989/2405 (N.I. 19)) or any other enactment or rule of law as, in its operation
in relation to the security provider or any conduct of the security provider,
would—
5
(a)
prevent or restrict the protected assets being applied in accordance
with the trust or other arrangement, or
(b)
prevent or restrict their enforcement for the purposes of being so
applied.
Enforcement
10
53
Offence to fail to comply with approved programme
(1)
It is an offence for a site operator or a body corporate associated with a site
operator (a “relevant person”) to fail to comply with an obligation imposed on
the relevant person by an approved funded decommissioning programme in
respect of the site.
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(2)
In proceedings against a person for an offence under this section, it is a defence
for the person to prove that due diligence was exercised to avoid committing
the offence.
(3)
A person guilty of an offence under this section is liable—
(a)
on summary conviction, to a fine not exceeding the statutory
20
maximum, or
(b)
on conviction on indictment, to imprisonment for a term not exceeding
2 years or to a fine, or both.
54
Secretary of State’s power of direction
(1)
This section applies where—
25
(a)
a person fails to comply with an obligation imposed on the person by
an approved funded decommissioning programme, or
(b)
a person on whom obligations are imposed by such a programme has
engaged in unlawful conduct which the Secretary of State thinks may
affect the programme.
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(2)
In this section—
“the defaulter” means a person to whom subsection (1)(a) or (b) applies,
and
“unlawful conduct” means conduct which is unlawful under the criminal
law of a part of the United Kingdom.
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(3)
A person has engaged in unlawful conduct for the purposes of subsection (1)
if—
(a)
the person has been found guilty of the unlawful conduct by a court in
a part of the United Kingdom,
(b)
the period for an appeal against the conviction has expired, and
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(c)
if an appeal has been made, it has been withdrawn or finally
determined.

Energy Bill
Part 3 — Decommissioning of energy installations
Chapter 1 — Nuclear sites: decommissioning and clean-up
46

(4)
The Secretary of State may direct the defaulter to take steps which the Secretary
of State considers necessary or appropriate to comply with the obligation or
remedy the effects of the unlawful conduct.
(5)
Before giving a direction under subsection (4), the Secretary of State must
consult each interested body (within the meaning of section 42(6)) in so far as
5
the direction relates to a function conferred on the interested body by or under
an enactment.
(6)
If at any time it appears to the Secretary of State that the defaulter has failed to
comply with a direction under subsection (4), the Secretary of State may make
an application to the High Court under this section.
10
(7)
If, on an application under this section, the High Court decides that the
defaulter has failed to comply with the direction, it may order the defaulter to
take such steps as it directs for securing that the notice is complied with.
55
Offence of further disclosure of information
(1)
A person who discloses information obtained by virtue of a notice under
15
section 48(4) or 49(2) or (5), or regulations under section 50(2)(e), is guilty of an
offence unless the disclosure is permitted by this section.
(2)
The disclosure is permitted if—
(a)
it is made with the consent of the person by or on behalf of whom the
information was provided;
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(b)
it is made under section 59 or for the purposes of any other function of
the Secretary of State under this Chapter;
(c)
it is a disclosure of information obtained under section 59 by the Health
and Safety Executive and it is made by the Executive for the purposes
of its functions under the Nuclear Installations Act 1965 (c. 57);
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(d)
it is a disclosure of information obtained under that section by the
Environment Agency or the Department of the Environment for
Northern Ireland and it is made by the Agency or Department for the
purposes of its functions under the Radioactive Substances Act 1993
(c. 12);
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(e)
it is required by or under an enactment.
(3)
A person guilty of an offence under this section is liable—
(a)
on summary conviction, to a fine not exceeding the statutory
maximum;
(b)
on conviction on indictment, to imprisonment for a term not exceeding
35
2 years or to a fine, or both.
56
Offence of supplying false information
(1)
It is an offence for a person, knowingly or recklessly, to supply false or
misleading information to the Secretary of State in response to a requirement
under this Chapter.
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(2)
A person guilty of an offence under this section is liable—
(a)
on summary conviction, to a fine not exceeding the statutory
maximum, or
(b)
on conviction on indictment, to imprisonment for a term not exceeding
2 years or to a fine, or both.
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