The Electricity Act 1989 (Scottish Nuclear Limited) Extinguishment of Loans Order 1990

Explanatory Note

(This Note is not part of the Order)

This Order extinguishes the liability of Scottish Nuclear Limited in respect of the principal of certain loans made from the National Loans Fund. The total liability extinguished is £1,368,390,398.

These loans were made to the South of Scotland Electricity Board. The liability to repay them is comprised in the property, rights and liabilities of the Board which on 31st March 1990, the appointed transfer date, vest under Section 67(4) of the Electricity Act 1989 in Scottish Nuclear Limited, one of the nominated successor companies, having been allocated to that company by a transfer scheme made under Section 67(1). The liability to repay the loans thus vests in Scottish Nuclear Limited so that the loans are “relevant loans” for the purposes of Section 80 of the Electricity Act 1989 and liability can be extinguished by order under that Section. The extinguishment is effected on 31st March 1990 immediately after vesting in Scottish Nuclear Limited.

The Electricity Act 1989 (Nominated Companies) (Scotland) Order 1989 (SI 1989/2448) nominated the successor companies. The Electricity Act 1989 (Transfer Date) (Scotland) Order 1990 (SI 1990/197) fixed the transfer date. The South of Scotland Electricity Board Transfer Scheme was made on 31st January 1990 and approved with modification by the Secretary of State on 27th February 1990.