Clause
44
Modification
of approved
programme
Question
proposed, That the clause stand part of the
Bill.
Malcolm
Wicks:
Before I start on the clause, I would like to
mention to the Committee that clauses 44, 45, 46 and 47 all deal with
the subject of modifications to an approved programme. Hon. Members may
find it useful to keep all four clauses in mind when we discuss them
individually. Clause 44 sets out who can propose a modification and
what the proposal can consist of, while clause 45 sets out the
procedure for modifying an approved programme. Clause 46 is slightly
different as it allows the Secretary of State to set out in regulations
how the procedure described in clause 45 can be disapplied. Clause 47
sets out when that modification takes effect.
Clause 44
gives certain persons the ability to propose amendments to an approved,
funded decommissioning programme. That could include both financial and
technical modifications. Those who can propose modifications are the
Secretary of State, the site operator, and any other person who has
obligations under the programme, providing that the site operator
consents to the proposed modification. The aim of the power is to allow
for the
modification of a programme once it has been approved. The operator
would be expected to proposed modifications where a change in the
station had a significant impact on decommissioning or waste cost
estimates. Modifications may also need to be made where there has been
a breach in the programme. Operators and the Secretary of State will be
free to propose modifications at any time, but persons with obligations
under the programme will be able to submit a modification only with the
approval of the operator. That is because the operator is ultimately
responsible for the content and implementation of the
programme. As well as
making modifications to the programme, the clause allows the Secretary
of State to impose new or additional obligations on any body corporate
associated with the operator. That might be necessary where the level
of security that a body corporate can provide has diminished in some
way, and there is a requirement for another body corporate associated
with the operator to provide that additional security. The Secretary of
State’s power to make modifications or impose obligations is
integral to the enforcement and sanction regime. For example, in the
event of a breach in the programme, the Secretary of State might choose
to modify the programme by imposing an obligation on the operator to
put in place a procedure to ensure that the breach did not occur again
before, or instead of, taking formal enforcement
action.
Similar powers
in relation to the modification of a decommissioning programme exist
elsewhere. The Petroleum Act 1998 gives the Secretary of State the
power to revise a programme to decommission offshore oil and gas
installations. The provisions of the Energy Act 2004 give the Secretary
of State a similar power in relation to the decommissioning of offshore
renewable installations. The power to modify an approved programme is
key if the programme is to remain up to date, and to ensure that the
cost estimates, technical plan and financial arrangements remain
prudent.
Charles
Hendry:
There are a number of concerns to express and
points to make in relation to the clauses. It might be sensible to
outline them at this stage, although I will probably get in only three
sentences before the Minister goes for his lunch break. My concern is
about the extensive powers that the Secretary of State seems to have.
Businesses will be building new reactors based on an understanding of
the costs involved in planning, building, running and decommissioning
those power stations, and of getting rid of the waste. It is clear that
they are looking for considerable certainty about the exposure to risks
and to any additional costs. The clause seems to give the Secretary of
State the right unilaterally to tear up an agreement and impose much
tougher conditions. Businesses appear powerless to stop this, and as
the Minister said in an earlier discussion, they do not have a right of
appeal.
It being
One o’clock,
The Chairman
adjourned the Committee without
Question put, pursuant to the
Standing
Order.
Adjourned
till this day at Four
o’clock.
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