Energy Act 2004
 

Energy Act 2004

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CONTENTS

Energy Act 2004

2004 CHAPTER 20

Part 1

The Civil Nuclear Industry

Chapter 1

Nuclear decommissioning

Establishment of NDA

1. The Nuclear Decommissioning Authority

2. Constitution of NDA

Principal function of NDA

3. Designated responsibilities

4. Additional responsibilities under designating directions

5. Supplemental provisions of designating directions

6. Designations relating to Scotland

Other functions of NDA

7. Supplemental functions

8. Special functions in relation to pensions etc.

General duties and powers of NDA

9. General duties when carrying out functions

10. Powers for carrying out functions

Strategies, plans and reports

11. Strategy for carrying out functions

12. Contents of strategy

13. Annual plans

14. Annual reports

Implementation of strategies and plans

15. Duty to decommission and clean up installations and sites

16. Duties to operate installations and to provide treatment etc.

17. Duty to use installations etc. for purposes of NDA

18. Directions by NDA to the person with control

19. Designation as a related site for the purposes of s. 18

20. Duty to comply with directions under s. 18

Financial provisions

21. Financial responsibilities of NDA

22. Expenditure and receipts of NDA

23. Borrowing by the NDA

24. Limit on NDA borrowing

25. Government guarantees for NDA borrowing

26. Accounts of NDA

27. Tax exemption for NDA activities

28. Taxation of NDA activities chargeable under Case VI of Schedule D

29. Disregard for tax purposes of cancellation etc. of provisions

30. Disregard for tax purposes of provisions recognised by NDA

Nuclear Decommissioning Funding Account

31. Establishment and maintenance of the Account

32. Examination of the Account

Supplementary provisions of Chapter 1 of Part 1

33. Validity of transactions

34. Amendment of Schedule 12 to the 1989 Act

35. Power to modify Chapter 1 of Part 1

36. Meaning of “nuclear site” etc. and “person with control”

37. General interpretation of Chapter 1 of Part 1

Chapter 2

Transfers relating to nuclear undertakings

Transfer by scheme of property etc.

38. Nuclear transfer schemes

39. Transfers of publicly owned assets

40. Transfers with the consent of the transferor

41. Recovery of property from private ownership

42. Transfer of Nuclear Liabilities Investment Portfolio

Extinguishment of undertakings and tax losses

43. Undertakings given by the Secretary of State

44. Extinguishment of BNFL losses for tax purposes

Provisions relating to transfers

45. Further provision applying to transferee companies

46. Pensions

47. Taxation

48. Supplementary powers of the Secretary of State, the NDA and the UKAEA

Supplementary provisions of Chapter 2 of Part 1

49. Duty to assist the Secretary of State

50. Interpretation of Chapter 2 of Part 1

Chapter 3

Civil Nuclear Constabulary

Civil Nuclear Police Authority

51. The Civil Nuclear Police Authority

Civil Nuclear Constabulary

52. The Civil Nuclear Constabulary

53. Chief constable and other senior officers

54. Functions of senior officers

55. Members of the Constabulary

Jurisdiction and powers of Constabulary

56. Jurisdiction of Constabulary

57. Stop and search under Terrorism Act 2000

Administration of Constabulary

58. Government, administration and conditions of service

59. Members of Constabulary serving with other forces

60. Charges

Supervision and inspection etc.

61. Planning and reports

62. Inspection

63. Supervision by Secretary of State

Rights etc. of members of the Constabulary

64. Civil Nuclear Police Federation

65. Rank-related associations

66. Representation at certain disciplinary proceedings

67. Trade union membership

Supplementary provisions of Chapter 3 of Part 1

68. Application of offences etc. applying to constables

69. Minor amendments relating to the Constabulary

70. Nuclear transfer scheme for UKAEA Constabulary

71. Interpretation of Chapter 3 of Part 1

Chapter 4

Authorisations relating to radioactive waste

72. Transfer of authorisations

73. Applications for variation of authorisations

74. Periodic reviews of authorisations

75. Consequential amendments of the 1993 Act

Chapter 5

Miscellaneous provisions relating to nuclear industry

76. Amendments for giving effect to international obligations

77. Regulation of equipment, software and information

78. Application of the 1965 Act to Northern Ireland

79. Expenditure on nuclear related matters

80. Additional functions of UKAEA

Part 2

Sustainability and Renewable Energy Sources

Chapter 1

Sustainable energy

81. Reports under section 1 of Sustainable Energy Act 2003

82. Microgeneration

83. Sustainable development

Chapter 2

Offshore production of energy

Renewable Energy Zones

84. Exploitation of areas outside the territorial sea for energy production

85. Application of criminal law to renewable energy installations etc.

86. Prosecutions

87. Application of civil law to renewable energy installations etc.

88. Orders in Council under ss. 85 and 87

Application of 1989 Act offshore

89. Activities offshore requiring 1989 Act licences

90. Modification of licence conditions for offshore transmission and distribution

91. Extension of transmission licences offshore

92. Competitive tenders for offshore transmission licences

93. Consents for generating stations offshore

94. Application of regulations under 1989 Act offshore

Safety zones for installations

95. Safety zones around renewable energy installations

96. Prohibited activities in safety zones

97. Offences relating to safety zones

98. Supplementary provisions relating to offences under s. 97

Navigation and civil aviation

99. Navigation

100. Further provision relating to public rights of navigation

101. Application of civil aviation regulations to renewable energy installations

Supplementary provisions of Chapter 2 of Part 2

102. Amendments of 1989 Act consequential on Chapter 2 of Part 2

103. Other amendments consequential on Chapter 2 of Part 2

104. Interpretation of Chapter 2 of Part 2

Chapter 3

Decommissioning of offshore installations

Decommissioning programmes

105. Requirement to prepare decommissioning programmes

106. Approval of decommissioning programmes

107. Failure to submit or rejection of decommissioning programmes

108. Reviews and revisions of decommissioning programmes

Implementation of decommissioning programmes

109. Carrying out of decommissioning programmes

110. Default in carrying out decommissioning programmes

Decommissioning regulations

111. Regulations about decommissioning

Supplementary provisions of Chapter 3 of Part 2

112. Duty to inform Secretary of State

113. Offences relating to decommissioning programmes

114. Interpretation of Chapter 3 of Part 2

Chapter 4

Renewables obligations relating to electricity

115. Discharge of renewables obligation in Great Britain by payment

116. Issue of green certificates in Great Britain

117. Use of green certificates issued in Northern Ireland

118. Distributions to Northern Ireland suppliers

119. Supplementary provision relating to renewables obligation in Great Britain

120. Issue of green certificates in Northern Ireland

121. GEMA’s power to act on behalf of Northern Ireland regulator

122. Consultation in relation to Northern Ireland renewables orders

123. Modification of conditions of Northern Ireland electricity licences

Chapter 5

Renewable transport fuel obligations

124. Imposition of renewable transport fuel obligations

125. The Administrator

126. Determinations of amounts of transport fuel

127. Renewable transport fuel certificates

128. Discharge of obligation by payment

129. Imposition of civil penalties

130. Objections to civil penalties

131. Appeals against civil penalties

132. Interpretation of Chapter 5 of Part 2

Part 3

Energy Regulation

Chapter 1

Electricity trading and transmission

133. “New trading and transmission arrangements”

134. Power to modify licence conditions

135. Alteration of transmission activities requiring licence

136. Transmission licences

137. New standard conditions for transmission licences

138. Conversion of existing transmission licences

139. Grant of transmission licences

140. Duties to provide information etc. to Secretary of State

141. Property arrangements schemes

142. Interpretation of Chapter 1 of Part 3

143. Amendments consequential on Chapter 1 of Part 3

144. Transition

Chapter 2

Interconnectors for electricity and gas

Electricity interconnectors

145. Operators of electricity interconnectors to be licensed

146. Standard conditions for electricity interconnectors

147. Consequential amendments of the 1989 Act

148. Grant of electricity interconnector licences to existing operators

Gas interconnectors

149. Operators of gas interconnectors to be licensed

150. Standard conditions for gas interconnectors

151. Disapplication of existing regimes

152. Grant of gas interconnector licences to existing operators

153. Extraterritorial application of Gas Act 1986

Chapter 3

Special administration regime for energy licensees

Energy administration orders

154. Energy administration orders

155. Objective of an energy administration

156. Applications for energy administration orders

157. Powers of court

158. Energy administrators

159. Conduct of administration, transfer schemes etc.

Restrictions on other insolvency procedures

160. Restrictions on winding-up orders

161. Restrictions on voluntary winding up

162. Restrictions on making of ordinary administration orders

163. Restrictions on administrator appointments by creditors etc.

164. Restrictions on enforcement of security

Financial support for companies in administration

165. Grants and loans

166. Indemnities

167. Guarantees where energy administration order is made

Licence modifications relating to energy administration

168. Modifications of particular or standard conditions

169. Licence conditions to secure funding of energy administration

Supplemental provision of Chapter 3 of Part 3

170. Modification of Chapter 3 of Part 3 under Enterprise Act 2002

171. Interpretation of Chapter 3 of Part 3

Chapter 4

Further provisions about regulation

Security of supply

172. Annual report on security of energy supplies

Appeals from GEMA decisions

173. Appeals to the Competition Commission

174. Procedure on appeals

175. Determination of appeals

176. Specialist members of Competition Commission

Funding of appeals and references

177. Modifications of standard conditions for funding appeals and references

Best practice

178. Duty to have regard to best regulatory practice

Meaning of electricity supply and high voltage lines

179. Meaning of electricity supply

180. Meaning of “high voltage line”

Metering

181. Prepayment meters

Inquiries under ss. 36 and 37 of the 1989 Act

182. Additional inspectors

Confidential information

183. Exclusion of confidential information from registers

Areas with high distribution or transmission costs

184. Assistance for areas with high distribution costs

185. Adjustment of transmission charges

186. Restrictions on disclosure of information

Payments into Scottish Consolidated Fund

187. Payments of sums raised by fossil fuel levy

Part 4

Miscellaneous and Supplemental

Imposition of charges

188. Power to impose charges to fund energy functions

International agreements relating to pipelines and offshore installations

189. Power to modify Petroleum Act 1998

Supplementary provision relating to functions of Secretary of State and GEMA

190. Application of general duties to Part 3 functions etc.

191. Supplementary provision about licence condition powers

Supplemental

192. Powers exercisable by statutory instrument

193. Service of notifications and other documents

194. Notifications and documents in electronic form

195. Timing and location of things done electronically

196. General interpretation

197. Repeals etc.

198. Short title, commencement and extent

Schedule 1: The Nuclear Decommissioning Authority

Part 1: Members and staff of NDA

Part 2: Proceedings of NDA

Part 3: Supplemental

Schedule 2: Procedural requirements applicable to NDA’s strategy

Schedule 3: Procedural requirements applicable to NDA’s annual plans

Schedule 4: Supplemental taxation provisions for exempt activities

Schedule 5: Supplementary provisions about nuclear transfer schemes

Schedule 6: Structure etc. of transferee companies

Schedule 7: Finances and accounts of transferee companies

Schedule 8: Pensions

Part 1: Preliminary

Part 2: Extensions of certain pension schemes

Part 3: Public sector transfers of UKAEA pension scheme members

Part 4: Other transfers

Part 5: UKAEA pensions for employees of designated BNFL companies

Schedule 9: Taxation provisions relating to nuclear transfer schemes

Part 1: Transfers to the NDA or a subsidiary of the NDA

Part 2: Transfers relating to BNFL or the UKAEA etc.

Part 3: Transfers relating to relevant site licensees

Part 4: Transfer of Nuclear Liabilities Investment Portfolio

Part 5: Stamp duty etc.

Part 6: Supplemental provisions of Schedule

Schedule 10: The Civil Nuclear Police Authority

Part 1: Membership

Part 2: Proceedings

Part 3: Employees

Part 4: Finances

Part 5: Miscellaneous

Schedule 11: Removal and suspension of senior officers of Constabulary

Schedule 12: Planning and reports about Constabulary

Part 1: Planning

Part 2: Reports

Schedule 13: Directions by Secretary of State about Constabulary

Schedule 14: Minor amendments relating to Constabulary

Schedule 15: Amendments of 1993 Act

Schedule 16: Applications and proposals for notices under section 95

Schedule 17: Conversion of existing transmission licences: licensing scheme

Schedule 18: Property arrangements schemes

Schedule 19: Consequential amendments relating to Chapter 1 of Part 3

Schedule 20: Conduct of energy administration

Part 1: Application of Schedule B1 to the 1986 Act

Part 2: Modifications of Schedule B1

Part 3: Further Schedule B1 modifications for unregistered companies

Part 4: Other modifications

Schedule 21: Energy transfer schemes

Schedule 22: Procedure for appeals under section 173

Schedule 23: Repeals

Part 1: Repealed provisions

Part 2: Savings etc.

 

An Act to make provision for the decommissioning and cleaning up of installations and sites used for, or contaminated by, nuclear activities; to make provision relating to the civil nuclear industry; to make provision about radioactive waste; to make provision for the development, regulation and encouragement of the use of renewable energy sources; to make further provision in connection with the regulation of the gas and electricity industries; to make provision for the imposition of charges in connection with the carrying out of the Secretary of State’s functions relating to energy matters; to make provision for giving effect to international agreements relating to pipelines and offshore installations; and for connected purposes.

[22nd July 2004]

Be it enacted by the Queen’s most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:—

Part 1

The Civil Nuclear Industry

Chapter 1

Nuclear decommissioning

Establishment of NDA

1 The Nuclear Decommissioning Authority

(1) There shall be a body corporate to be known as the Nuclear Decommissioning Authority (“the NDA”).

(2) The NDA is not to be treated—

(a) except so far as necessary for the purposes of its function under section 7(2), as performing any duty or exercising any power on behalf of the Crown; or

(b) as enjoying any status, immunity or privilege of the Crown;

and the NDA’s property is not to be regarded as property of the Crown, or as held on behalf of the Crown.

2 Constitution of NDA

(1) The NDA—

(a) shall consist of not fewer than seven and not more than thirteen members; and

(b) shall have a membership comprising both non-executive members and executive members.

(2) The non-executive members shall be—

(a) a chairman appointed by the Secretary of State; and

(b) a number of other persons appointed by the Secretary of State (after consultation with the chairman);

and (subject to subsection (1)) it is for the Secretary of State to determine how many non-executive members there are to be in addition to the chairman.

(3) The executive members shall be—

(a) a person appointed by the non-executive members to be the NDA’s chief executive; and

(b) the other persons (if any) appointed by them (after consultation with the chief executive) to be executive members in addition to the chief executive;

and it is for the non-executive members to determine (subject to subsection (8)) whether there are to be executive members in addition to the chief executive, and (if so) how many.

(4) The approval of the Secretary of State is required for the appointment of the chief executive.

(5) Before—

(a) appointing a person to be the chairman or otherwise to be a non-executive member of the NDA, or

(b) approving the appointment of a person to be the chief executive,

the Secretary of State must consult the Scottish Ministers.

(6) Subsection (5) may be satisfied by consultation that took place wholly or partly before the commencement of this section.

(7) If there are executive members in addition to the chief executive, each must be a member of the staff of the NDA.

(8) Where the Secretary of State so provides by a direction to the NDA, the non-executive members must secure that the number of executive members in addition to the chief executive—

(a) is not less than the minimum set by the direction; and

(b) does not exceed the maximum so set;

and the direction must not set a maximum of more than three.

(9) The Secretary of State must exercise his powers under this section to secure, so far as practicable, that the number of executive members is at all times less than the number of non-executive members.

(10) Schedule 1 (which contains further provision about the constitution, staffing and proceedings of the NDA) has effect; and subsections (1) to (9) have effect subject to paragraph 4 of that Schedule.

Principal function of NDA

3 Designated responsibilities

(1) The principal function of the NDA shall be to have responsibility for securing—

(a) the operation, pending the commencement of their decommissioning, of designated nuclear installations;

(b) the decommissioning of those and other designated nuclear installations;

(c) the cleaning-up of designated nuclear sites;

(d) the operation of designated facilities for treating, storing, transporting or disposing of hazardous material;

(e) the treatment, storage, transportation and disposal, in designated circumstances, of hazardous material; and

(f) the decommissioning of designated installations comprised in NDA facilities.

(2) The responsibilities of the NDA under this section are responsibilities to be discharged by the performance of its duties under sections 15 and 16.

(3) A designation for the purposes of this section—

(a) of an installation, site or facility, and

(b) of the circumstances in which the NDA is to have responsibility for securing the treatment, storage, transportation or disposal of matter or waste,

has (subject to section 6) to be in the form of a direction given by the Secretary of State to the NDA.

(4) A direction must not give the NDA a responsibility mentioned in this section in relation to an installation, site or facility unless the person with control of it at the time when the direction is given is—

(a) a Crown appointee;

(b) the UKAEA;

(c) a publicly owned company;

(d) the NDA itself; or

(e) a person who has consented to the giving of the direction.

(5) A direction designating an installation, site or facility must specify the paragraph or paragraphs of subsection (1) for the purposes of which it is being designated.

(6) But, except in so far as the direction containing the designation otherwise provides, the designation of a principal nuclear site for cleaning-up is to have effect for the purposes of this Chapter as including a designation, as an installation to be decommissioned, of every installation situated in or on that site.

(7) The Secretary of State must—

(a) lay before Parliament a copy of every direction containing a designation;

(b) publish the contents of every such direction in the manner which, in his opinion, is most appropriate for bringing it to the attention of persons likely to be affected by it; and

(c) send a copy of every direction giving the NDA a responsibility in relation to an installation, site or facility to the person with control of that installation, site or facility.

(8) The Scottish Ministers must lay before the Scottish Parliament a copy of every direction which by virtue of section 6 is given jointly by them and the Secretary of State.

(9) The Secretary of State may exclude—

(a) from what he lays before Parliament and publishes under this section, and

(b) from what is to be laid before the Scottish Parliament by the Scottish Ministers,

anything the publication of which he considers to be against the interests of national security.

4 Additional responsibilities under designating directions

(1) Where the NDA is given a responsibility for securing the operation of an installation or facility, a direction may also give the NDA further responsibilities in relation to the management of the site where that installation or facility is situated.

(2) Where the NDA is given a responsibility in relation to a principal nuclear site, a direction may give the NDA further responsibilities in relation to the operation or management of any one or more of the following—

(a) research facilities situated in or on that site;

(b) facilities other than research facilities which are situated in or on that site and are neither nuclear installations nor NDA facilities;

(c) other land (whether or not adjacent to that site) which is owned or occupied, together with it, by the person with control of the principal nuclear site; and

(d) facilities of any description situated in or on such other land.

(3) The NDA is not to be given further responsibilities under subsection (1) or (2) except where the Secretary of State considers it appropriate to do so—

(a) for the purpose of facilitating the carrying out by the NDA of any of its functions; or

(b) for a purpose otherwise incidental to the carrying out of those functions.

(4) Where a direction gives the NDA a responsibility for securing the treatment, storage, transportation or disposal of matter or waste, it may also give the NDA responsibility for securing the design, construction and operation of a facility for that purpose.

(5) Subsection (4) of section 3 applies to giving the NDA a responsibility mentioned in this section as it applies to giving it a responsibility mentioned in that section.

(6) In this section “direction” means a direction under section 3.

5 Supplemental provisions of designating directions

(1) A direction comes into force at the time which is specified in the direction or determined in accordance with provision contained in it.

(2) A direction giving the NDA responsibilities in relation to an installation, site or facility which—

(a) is a nuclear installation, a principal nuclear site or a facility situated in or on a principal nuclear site, but

(b) is not one in relation to which the NDA is to have a financial responsibility under section 21,

may require the person with control of the installation, site or facility to make payments to the Secretary of State.

(3) A direction may also impose requirements with respect to the charges which (subject to section 21) are to be imposed by the NDA in connection with the discharge of responsibilities given to the NDA by the direction.

(4) Subject to subsections (5) and (6), a direction may be modified or revoked by a subsequent direction.

(5) A direction must not modify or revoke a direction relating to the responsibility of the NDA in relation to an installation, site or facility unless the person with control of the installation, site or facility is, at the time when the modification or revocation comes into force—

(a) a Crown appointee;

(b) the UKAEA;

(c) a publicly owned company;

(d) the NDA itself; or

(e) a person who has consented to the modification or revocation.

(6) A direction in so far as it gives the NDA responsibility—

(a) for the decommissioning of an installation, or

(b) for the cleaning-up of a principal nuclear site,

may be revoked only if the condition set out in subsection (7) is satisfied.

(7) The condition is—

(a) in the case of a direction given by the Secretary of State, that he is satisfied that the NDA has discharged all its responsibilities in relation to the decommissioning or cleaning-up of the installation or site; and

(b) in the case of a direction given jointly by the Secretary of State and the Scottish Ministers, that he and those Ministers are so satisfied.

(8) The Secretary of State must pay sums received by him by virtue of subsection (2) into the Consolidated Fund.

(9) In this section “direction” means a direction under section 3.

6 Designations relating to Scotland

(1) A direction under section 3 which—

(a) gives the NDA responsibilities falling within subsection (2), or

(b) removes or varies any such responsibilities,

may be given only by the Secretary of State and the Scottish Ministers, acting jointly.

(2) The following responsibilities fall within this subsection—

(a) responsibility for the cleaning-up of a site in Scotland which is a principal nuclear site without being a licensable site;

(b) responsibility for the cleaning-up of a contaminated site in Scotland;

(c) responsibility for the operation of facilities for treating or storing hazardous material in or on a site in Scotland which is a principal nuclear site without being a licensable site;

(d) responsibility for the operation in or on a nuclear site in Scotland of a facility for the disposal of hazardous material;

(e) responsibility, in specified circumstances, for the disposal at a site in Scotland of hazardous material;

(f) responsibility for the treatment or storage of hazardous material that may, in the discharge of that responsibility, be treated or stored in or on a site in Scotland which is not a licensable site;

(g) responsibility for the decommissioning of an installation comprised in NDA facilities that are situated in or on a site in Scotland which is a principal nuclear site without being a licensable site.

(3) Before giving a direction under section 3 which—

(a) gives the NDA responsibilities for the operation in or on a licensable site in Scotland of a facility for the non-processing treatment of hazardous material;

b) gives it responsibilities not falling within subsection (2)(f) for the non-processing treatment or the storage of hazardous material the treatment or storage of which, in the discharge of those responsibilities, may take place in or on a site in Scotland;

(c) gives it responsibilities for the operation in or on a licensable site in Scotland of a facility for the storage of hazardous material; or

(d) removes or varies any responsibilities mentioned in paragraph (a) or (c),

the Secretary of State must consult the Scottish Ministers.

(4) In this section—

“licensable site” means a site that falls within paragraph (a), (b) or (d) of the definition of a “principal nuclear site” in section 36(2);

“non-processing treatment” means treatment that does not consist in the processing or reprocessing of spent or irradiated nuclear fuel.

Other functions of NDA

7 Supplemental functions

(1) In addition to its function under section 3, the NDA shall have the function, to the extent that it considers it appropriate to do so, of—

(a) carrying out research into matters relating to the decommissioning of nuclear installations, the cleaning-up of nuclear sites and the other activities in relation to which it has functions;

(b) promoting the carrying out of research by others into those matters;

(c) distributing information about those matters;

(d) educating and training persons about those matters;

(e) giving encouragement and other support to activities that benefit the social or economic life of communities living near designated installations, designated sites or designated facilities or that produce other environmental benefits for such communities.

(2) The NDA shall also have the function, to the extent that it is required to do so by the Secretary of State, of acting on his behalf in relation to agreements to which he is a party and which relate to expenditure incurred, or to be incurred, by him or by others—

(a) on the decommissioning of nuclear installations;

(b) on the cleaning-up of nuclear sites; or

(c) on the treatment, storage, transportation or disposal of hazardous material.

(3) A requirement of the Secretary of State under subsection (2) may require the NDA to meet, in whole or part, the cost of discharging liabilities of his under the agreements in relation to which the NDA acts on his behalf.

(4) The NDA’s functions further include—

(a) to the extent that it is required to do so by the Secretary of State, giving advice to the Secretary of State or to others (whether generally or in relation to a particular installation, site or facility, or particular hazardous material) about any of the things in which the NDA requires an expertise for the purpose of carrying out its functions;

(b) to the extent that it is required to do so by the Scottish Ministers, giving advice to them (whether generally or in relation to a particular installation, site or facility, or particular hazardous material) about any of those things (so far as they concern Scotland); and

(c) giving to the Secretary of State and the Scottish Ministers such further general advice about the things in which the NDA requires an expertise for the purpose of carrying out its functions as it considers appropriate.

(5) The references in subsection (4) to the things in which the NDA requires an expertise for the purpose of carrying out its functions include, in particular—

(a) the operation and decommissioning of nuclear installations;

(b) the cleaning-up of nuclear sites; and

(c) the treatment, storage, transportation and disposal of hazardous material.

(6) It shall be the duty of the NDA to secure that the discharge of its responsibilities under section 3(1) is not adversely affected—

(a) by the doing of anything mentioned in subsection (1); or

(b) by the carrying out of its functions by virtue of subsection (4)(c).

(7) Where—

(a) the NDA provides advice to the Scottish Ministers in pursuance of a requirement imposed by them under this section, and

(b) the requirement is not one imposed with the agreement of the Secretary of State,

the NDA may charge for the provision of the advice.

(8) The amount of the charge shall be such sum as may be—

(a) agreed between the NDA and the Scottish Ministers; or

(b) in the absence of agreement, determined by the Secretary of State.

8 Special functions in relation to pensions etc.

(1) The NDA shall have the function, to the extent that it considers it appropriate to do so, of—

(a) establishing schemes for the payment of pensions, allowances or gratuities to or in respect of one or more different descriptions of relevant employees;

(b) maintaining such schemes (whether or not established by the NDA); and

(c) administering a scheme for the payment of compensation in respect of personal injuries or death caused to relevant employees or to others employed in the nuclear industry.

(2) In this section “relevant employees” means—

(a) employees of the UKAEA;

(b) persons the duties of whose employment with any other person relate (in whole or in part) to activities carried on for purposes connected with the carrying out by the NDA of any of its functions; or

(c) a person employed in the nuclear industry who is of such a description as may be designated for the purposes of this subsection by the Secretary of State.

(3) Before making a designation for the purposes of subsection (2)(c), the Secretary of State must consult the NDA.

General duties and powers of NDA

9 General duties when carrying out functions

(1) It shall be the duty of the NDA, in carrying out its functions, to have particular regard to each of the following—

(a) relevant Government policy;

(b) the need to safeguard the environment;

(c) the need to protect persons from risks to their health and safety from activities involving the use, treatment, storage, transportation or disposal of hazardous material; and

(d) the need to preserve nuclear security.

(2) It shall also be the duty of the NDA, in carrying out its functions—

(a) to promote, and to ensure, the maintenance and development in the United Kingdom of a skilled workforce able to undertake the work of decommissioning nuclear installations and of cleaning up nuclear sites;

(b) to promote effective competition for contracts to provide it with the services it must secure in order to discharge its responsibilities;

(c) to secure the adoption of what it considers to be good practice by the persons with control of designated installations, designated sites and designated facilities; and

(d) subject to subsection (1) and to paragraphs (a) to (c) of this subsection, to secure value for money in all its dealings with others.

(3) In the carrying out of its functions with respect to—

(a) the operation of the installations and facilities designated as installations or facilities whose operation is to be secured by the NDA, and

(b) the management of designated sites,

the NDA shall have the further duty to act in the manner that it considers is most beneficial to the public.

(4) In the case of each designated installation, designated site or designated facility, it shall be the duty of the NDA, in carrying out its function by virtue of section 7(1)(e)—

(a) to have regard, in particular, to the extent to which the person with control of the installation, site or facility was doing anything falling within subsection (5) prior to its designation; and

(b) to consider what obligations in relation to the doing of anything falling within that subsection should be imposed on any person with whom the NDA is proposing, in connection with the discharge of any of its responsibilities in relation to the installation, site or facility, to enter into a contract for that person to provide services.

(5) What falls within this subsection is anything that is done for the purpose of giving encouragement and other support to—

(a) activities benefiting the social or economic life of communities living near the installation, site or facility; or

(b) activities producing other environmental benefits for those communities.

(6) Where the NDA is proposing, in connection with the discharge of any of its responsibilities in relation to a designated installation, designated site or designated facility, to enter into a contract with any person for him to provide any services, it shall be the duty of the NDA, before entering into that contract—

(a) to require that person to produce his proposed strategy for the procurement of the goods and services that he will need to procure for the purpose of carrying out his obligations under the contract; and

(b) to consider the likely effect of the implementation of that strategy on the economic life of communities living near the installation, site or facility.

(7) In this section “relevant Government policy” means all current policies which—

(a) relate to the decommissioning of nuclear installations, the cleaning-up of nuclear sites or other activities in relation to which the NDA has functions; and

(b) have been published by or on behalf of Her Majesty’s Government in the United Kingdom or a devolved administration, have been notified to the NDA by the Secretary of State or have been notified both to the NDA and to the Secretary of State by a devolved administration.

(8) In subsection (7) “devolved administration” means the Scottish Ministers, the National Assembly for Wales or a department in Northern Ireland.

(9) In this Chapter “nuclear security” means the security of each of the following—

(a) nuclear installations and nuclear sites;

(b) hazardous material;

(c) apparatus and software used or stored in or on a nuclear installation or nuclear site;

(d) apparatus and software used in connection with the treatment, storage, transportation or disposal of hazardous material;

(e) sensitive nuclear information.

(10) In subsection (9) “sensitive nuclear information” means—

(a) information relating to a treatment of uranium that increases the proportion of the isotope 235 contained in the uranium;

(b) information capable of being used in connection with such a treatment of uranium;

(c) information relating to activities carried out in, on or in relation to—

(i) nuclear installations or nuclear sites, or

(ii) hazardous material,

which the NDA has been notified by the Secretary of State is information that needs to be protected in the interests of national security; and

(d) information about nuclear security.

10 Powers for carrying out functions

(1) The NDA shall have power, for the purpose of carrying out its functions, to do all such things as appear to it to be likely to facilitate the carrying out of its functions, or to be incidental to carrying them out.

(2) The powers of the NDA include, in particular—

(a) power to operate electricity generating stations;

(b) power to apply for and hold nuclear site licences, registrations under section 7 of the 1993 Act and authorisations under sections 13 and 14 of that Act;

(c) power to make grants or loans to persons undertaking activities that benefit the social or economic life of communities living near designated installations, designated sites or designated facilities or that produce other environmental benefits for such communities;

(d) power to make grants or loans to persons carrying out research into matters relating to the decommissioning of nuclear installations, the cleaning-up of nuclear sites or other activities in relation to which the NDA has functions;

(e) power to use its facilities, and facilities on designated sites, for the carrying out of research on behalf of others into any matter whatever;

(f) power to use those facilities for the carrying on of any activities, in addition to such research, that it considers appropriate for generating funds for application towards the carrying out of its functions;

(g) power to delegate to the UKAEA the maintenance of any such scheme as is referred to in section 8(1)(a) and (b);

(h) power itself to do anything that the NDA has a function of securing others to do;

(i) power to enter into contracts for others to secure the things that it has a function of securing;

(j) power to enter into contracts for others to do anything else that it may do for the purpose of, or in connection with, the carrying out of its functions;

(k) power to acquire or establish subsidiaries and to carry out its functions through subsidiaries.

(3) The NDA may impose charges in respect of the things that it does or secures in the discharge of its responsibilities—

(a) on persons with control of installations, sites and facilities in the case of which it does not have a financial responsibility under section 21; and

(b) on other persons for whom it does or secures the doing of anything for which it does not have a financial responsibility under that section.

(4) Charges imposed under subsection (3) must not be imposed except—

(a) in accordance with a direction under section 3; or

(b) with the approval of the Secretary of State.

Strategies, plans and reports

11 Strategy for carrying out functions

(1) It shall be the duty of the NDA—

(a) to prepare its strategy for carrying out its functions; and

(b) from time to time to revise that strategy.

(2) On the NDA being given a new responsibility for securing the decommissioning or cleaning-up of an installation or site, it must consider—

(a) whether the objectives and policy already contained in its current strategy apply in the case of that installation or site in a manner that it considers appropriate; and

(b) if it considers that they do not, what revision of its strategy is required.

(3) Schedule 2 (which makes provision about the preparation and revision of the NDA’s strategy, about consultation and about the approval and publication of the strategy) has effect.

 
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