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Energy Bill


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

49

 

61      

Amendment of Nuclear Installations Act 1965

After section 1(3) of the Nuclear Installations Act 1965 (c. 57) (nuclear site

licences) insert—

“(4)   

Subsection (1) is subject to section 43 of the Energy Act 2008

(prohibition on use of site in absence of approved funded

5

decommissioning programme).”

General

62      

Meaning of “associated”

(1)   

For the purposes of this Chapter, one body corporate is associated with another

if one of them has a significant interest in the other or a third body corporate

10

has a significant interest in both of them; and subsections (2) to (5) set out the

circumstances in which one body corporate (“A”) has a significant interest in

another (“B”).

(2)   

Where B is a company, A has a significant interest in B if A possesses or is

entitled to acquire—

15

(a)   

20% or more of the issued share capital of B,

(b)   

such rights as would entitle A to exercise 20% or more of the votes

exercisable in general meetings of B,

(c)   

such part of the issued share capital of B as would entitle A to 20% or

more of the amount distributed if the whole of the income of B were in

20

fact distributed among the shareholders, or

(d)   

such rights as would, in the event of the winding up of B or in any other

circumstances, entitle it to receive 20% or more of the assets of B which

would then be available for distribution among the shareholders.

(3)   

Where B is a limited liability partnership, A has a significant interest in B if A—

25

(a)   

holds 20% or more of the voting rights in B,

(b)   

is a member of B and has a right to appoint or remove 20% or more of

other members, or

(c)   

is a member of B and controls alone, or pursuant to an agreement with

other members, 20% or more of the voting rights in B.

30

(4)   

In subsection (3)(a) and (c) the references to “voting rights” are to the rights

conferred on members in respect of their interest in a limited liability

partnership to vote on those matters which are to be decided on by a vote of

the members of the limited liability partnership.

(5)   

In any case, A has a significant interest in B if A has the power, directly or

35

indirectly, to secure that the affairs of B are conducted in accordance with A’s

wishes.

(6)   

In determining whether, by virtue of this section, A has a significant interest in

B, A shall be taken to possess—

(a)   

any rights and powers possessed by a person as nominee for A, and

40

(b)   

any rights and powers possessed by a body corporate which A controls

(including rights and powers which such a body corporate would be

taken to possess by virtue of this paragraph).

 
 

Energy Bill
Part 3 — Decommissioning of energy installations
Chapter 2 — Offshore renewables installations

50

 

(7)   

In order to determine whether one body corporate controls another for the

purposes of subsection (6)(b), subsections (2) to (5) and (6)(a) are to be applied,

but as if—

(a)   

for “has a significant interest in” in each place there were substituted

“controls”, and

5

(b)   

for “20%” in each place there were substituted “50%”.

63      

Interpretation

In this Chapter—

“approved funded decommissioning programme” means a funded

decommissioning programme approved under section 42;

10

“cleaning-up” and “decommissioning”, in relation to a site or installation,

includes the treatment, storage, transportation and disposal of

hazardous material (within the meaning of section 37 of the Energy Act

2004) and of other matter and substances that need to be dealt with or

removed in or towards making the site or installation suitable to be

15

used for other purposes;

“the designated technical matters” has the meaning given by section 41;

“document” includes anything in which information is recorded in any

form;

“enactment” includes an enactment comprised in, or in an instrument

20

made under, an Act of the Scottish Parliament or Northern Ireland

legislation;

“funded decommissioning programme” is to be construed in accordance

with section 41;

“nuclear installation” has the meaning given by section 26 of the Nuclear

25

Installations Act 1965 (c. 57);

“nuclear site licence” has the meaning given by that section;

“relevant nuclear installation”, in relation to a site, means a nuclear

installation which is or is intended to be established on the site;

“site operator” means a person who holds a nuclear site licence in respect

30

of a site;

“the technical matters” has the meaning given by section 41.

Chapter 2

Offshore renewables installations

64      

Decommissioning notices relating to offshore renewable energy installations

35

(1)   

The Energy Act 2004 (c. 20) is amended as follows.

(2)   

In section 105(2) (notices), for “that person” substitute “—

(a)   

a person falling within subsection (1)(a), (b) or (c), or

(b)   

if a person to whom paragraph (a) applies is a body corporate, a body

corporate associated with that person (subject to section 105A),”.

40

(3)   

In section 105(3) (consents) for the words from the beginning to “proposals—”

substitute—

“(3)   

Before requiring a person to submit a decommissioning programme in

respect of proposals made by a person within paragraph (a) or (b) of

 
 

Energy Bill
Part 3 — Decommissioning of energy installations
Chapter 2 — Offshore renewables installations

51

 

subsection (1), the Secretary of State must be satisfied that at least one

of the statutory consents required for giving effect to those proposals—

”.

(4)   

After section 105 (requirement to prepare decommissioning programme)

insert—

5

“105A   

Section 105 notices: supplemental

(1)   

The Secretary of State may not give a notice under section 105(2)(b) to

a body corporate associated with a person (“the responsible person”)

within section 105(1)(a), (b) or (c) unless the Secretary of State—

(a)   

has given a notice to the responsible person under section

10

105(2)(a), and

(b)   

is not satisfied that adequate arrangements (including financial

arrangements) have been made by the responsible person to

ensure that a satisfactory decommissioning programme will be

carried out.

15

(2)   

Subsection (1) does not apply if—

(a)   

there has been a failure to comply with a notice under section

105(2), or

(b)   

the Secretary of State has rejected a programme submitted in

compliance with such a notice.

20

(3)   

For the purposes of this section and section 105, one body corporate is

associated with another if one of them controls the other or a third body

corporate controls both of them, and subsections (4) to (8) set out the

circumstances in which one body corporate (“A”) controls another

(“B”).

25

(4)   

Where B is a company, A controls B if A possesses or is entitled to

acquire—

(a)   

one half or more of the issued share capital of B,

(b)   

such rights as would entitle A to exercise one half or more of the

votes exercisable in general meetings of B,

30

(c)   

such part of the issued share capital of B as would entitle A to

one half or more of the amount distributed if the whole of the

income of B were in fact distributed among the shareholders, or

(d)   

such rights as would, in the event of the winding up of B or in

any other circumstances, entitle it to receive one half or more of

35

the assets of B which would then be available for distribution

among the shareholders.

(5)   

Where B is a limited liability partnership, A controls B if A—

(a)   

holds a majority of the voting rights in B,

(b)   

is a member of B and has a right to appoint or remove a majority

40

of other members, or

(c)   

is a member of B and controls alone, or pursuant to an

agreement with other members, a majority of the voting rights

in B.

(6)   

In subsection (5)(a) and (c) the references to “voting rights” are to the

45

rights conferred on members in respect of their interest in a limited

liability partnership to vote on those matters which are to be decided

on by a vote of the members of the limited liability partnership.

 
 

Energy Bill
Part 3 — Decommissioning of energy installations
Chapter 2 — Offshore renewables installations

52

 

(7)   

In any case, A controls B if A has the power, directly or indirectly, to

secure that the affairs of B are conducted in accordance with A’s

wishes.

(8)   

In determining whether, by virtue of subsections (4) to (7), A controls

B, A is to be taken to possess—

5

(a)   

any rights and powers possessed by a person as nominee for it,

and

(b)   

any rights and powers possessed by a body corporate which it

controls (including rights and powers which such a body

corporate would be taken to possess by virtue of this

10

paragraph).”

(5)   

In section 108 (reviews of decommissioning programmes), after subsection (3)

insert—

“(3A)   

A proposal under subsection (3)(b) may, in particular, be made in

relation to a body corporate associated with a person who has a duty

15

under section 109(1) (and for this purpose “associated” is to be

construed in accordance with section 105A(3) to (8)).”

65      

Security for decommissioning obligations

After section 110 of the Energy Act 2004 (c. 20) (failure to carry out

decommissioning programme) insert—

20

“110A   

Protection of funds held for purposes of decommissioning

(1)   

This section applies where any security in relation to the carrying out

of an approved decommissioning programme, or for compliance with

the conditions of its approval, has been provided by a person (“the

security provider”) by way of a trust or other arrangements.

25

(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 insolvency or otherwise) is to be determined in accordance

30

with the trust or other arrangements.

(4)   

For the purposes of subsection (3), no regard is to be had to so much of

the Insolvency Act 1986, the Insolvency (Northern Ireland) Order 1989

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—

35

(a)   

prevent or restrict the protected assets from being applied in

accordance with the trust or other arrangement, or

(b)   

prevent or restrict their enforcement for the purposes of being

so applied.

(5)   

In subsection (4) “enactment” includes an instrument made under an

40

enactment.

110B    

Section 110A: supplemental

(1)   

The Secretary of State may direct a security provider to publish

specified information about the protected assets.

 
 

Energy Bill
Part 3 — Decommissioning of energy installations
Chapter 2 — Offshore renewables installations

53

 

(2)   

A direction under this section may specify—

(a)   

the time when the information must be published, and

(b)   

the manner of publication.

(3)   

If a security provider fails to comply with a direction, the Secretary of

State or a creditor of the security provider may make an application to

5

the court under this section.

(4)   

If, on an application under this section, the court decides that the

security provider has failed to comply with the direction, it may order

the security provider to take such steps as the court directs for securing

that the direction is complied with.

10

(5)   

In this section—

“the protected assets” has the same meaning as in section 110A;

“security provider” means a person who has provided security in

relation to which that section applies.

(6)   

In subsections (3) and (4) references to “the court” are references—

15

(a)   

to the High Court, in relation to an application in England and

Wales or Northern Ireland, or

(b)   

to the Court of Session, in relation to an application in

Scotland.”

66      

Provision of information to Secretary of State

20

After section 112 of the Energy Act 2004 (c. 20) (duty to inform Secretary of

State) insert—

“112A   

Power of Secretary of State to require information and documents

(1)   

The Secretary of State may by notice require a person within subsection

(2) to provide the Secretary of State with such relevant information or

25

documents as the Secretary of State may require in connection with the

exercise of functions under this Chapter.

(2)   

Those persons are—

(a)   

a person who has been, or may be, given a notice under section

105(2)(a) in relation to a relevant object,

30

(b)   

where a person falling within paragraph (a) is a body corporate,

a body corporate associated with that person,

(c)   

a person not within paragraph (a) or (b) who by virtue of

provision made under section 108(3)(b) is subject to the duty

under section 109(1) in relation to a decommissioning

35

programme relating to a relevant object.

(3)   

Information or a document is “relevant” if it relates to—

(a)   

the place where the relevant object is or is to be situated,

(b)   

the relevant object,

(c)   

where the recipient of the notice is a body corporate falling

40

within subsection (2)(c) or section 105(2)(a), details of an

associated body corporate,

(d)   

the financial affairs of the recipient of the notice or, where the

recipient is a body corporate falling within subsection (2)(c) or

section 105(1)(a), (b) or (c), an associated body corporate,

45

 
 

Energy Bill
Part 3 — Decommissioning of energy installations
Chapter 3 — Oil and gas installations

54

 

(e)   

the security that the recipient proposes to provide in relation to

the carrying out of a decommissioning programme relating to

the relevant object or for the recipient’s compliance with any

conditions of the programme’s approval, or

(f)   

where the recipient of the notice (“R”) is a body corporate falling

5

within subsection (2)(c) or section 105(1)(a), (b) or (c), the name

or address of any person whom R believes to be an associated

body corporate.

(4)   

But if a notice under subsection (1) requires information in connection

with a function of the Secretary of State under section 107(1) or (4), the

10

notice may require the provision of information or documents which

the Secretary of State considers are necessary or expedient for the

purpose of exercising those functions (whether or not they are of a kind

specified in subsection (3)).

(5)   

A notice under subsection (1) must specify the documents or

15

information, or the description of documents or information, to which

it relates.

(6)   

Information or documents required to be provided under this section

must be provided within such period as is specified in the notice under

subsection (1).

20

(7)   

In this section, “associated”, in relation to a body corporate, is to be

construed in accordance with section 105A(3) to (8).

(8)   

A person who fails, without reasonable excuse, to comply with a notice

under subsection (1) is guilty of an offence.

(9)   

A person who discloses information obtained by virtue of a notice

25

under this section is guilty of an offence unless the disclosure—

(a)   

is made with the consent of the person by or on behalf of whom

the information was provided,

(b)   

is for the purpose of the exercise of the Secretary of State’s

functions under this Chapter, the Electricity Act 1989 or Part 4

30

of the Petroleum Act 1998, or

(c)   

is required by or under an enactment.”

Chapter 3

Oil and gas installations

67      

Persons who may be required to submit abandonment programmes

35

(1)   

Section 30 of the Petroleum Act 1998 (c. 17) (persons who may be required to

submit programmes) is amended as follows.

(2)   

In subsection (1)—

(a)   

after paragraph (b) insert—

“(ba)   

a person to whom subsection (5)(a) and (b) applied in

40

relation to the installation, but who—

(i)   

transferred the right mentioned in that

subsection to another person, and

 
 

Energy Bill
Part 3 — Decommissioning of energy installations
Chapter 3 — Oil and gas installations

55

 

(ii)   

has not obtained a consent required under the

licence in relation to the transfer;”, and

(b)   

in paragraph (e) for “company” in each place substitute “body

corporate”.

(3)   

In subsection (2)(c) for “company” in each place substitute “body corporate”.

5

(4)   

For subsection (5)(b) substitute—

“(b)   

either—

(i)   

any activity mentioned in subsection (6) is carried on

from, by means of or on the installation, or

(ii)   

the person intends to carry on an activity mentioned in

10

that subsection from, by means of or on the

installation,”.

(5)   

For subsection (8) substitute—

“(8)   

For the purposes of this section, one body corporate is associated with

another if one of them controls the other or a third body corporate

15

controls both of them; and subsections (8A) to (8D) set out the

circumstances in which one body corporate (“A”) controls another

(“B”).

(8A)   

Where B is a company, A controls B if A possesses or is entitled to

acquire—

20

(a)   

one half or more of the issued share capital of B,

(b)   

such rights as would entitle A to exercise one half or more of the

votes exercisable in general meetings of B,

(c)   

such part of the issued share capital of B as would entitle A to

one half or more of the amount distributed if the whole of the

25

income of B were in fact distributed among the shareholders, or

(d)   

such rights as would, in the event of the winding up of B or in

any other circumstances, entitle it to receive one half or more of

the assets of B which would then be available for distribution

among the shareholders.

30

(8B)   

Where B is a limited liability partnership, A controls B if A—

(a)   

holds a majority of the voting rights in B,

(b)   

is a member of B and has a right to appoint or remove a majority

of other members, or

(c)   

is a member of B and controls alone, or pursuant to an

35

agreement with other members, a majority of the voting rights

in B.

(8C)   

In subsection (8B)(a) and (c) the references to “voting rights” are to the

rights conferred on members in respect of their interest in a limited

liability partnership to vote on those matters which are to be decided

40

on by a vote of the members of the limited liability partnership.

(8D)   

In any case, A controls B if A has the power, directly or indirectly, to

secure that the affairs of B are conducted in accordance with A’s

wishes.”

(6)   

In subsection (9)—

45

(a)   

for “subsection (8)” substitute “subsections (8) to (8D)”, and

(b)   

for “company” in each place substitute “body corporate”.

 
 

 
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