The Electricity Act 1989 (Scottish Power plc) Extinguishment of Loans Order 1991

Explanatory Note

(This note is not part of the Order)

This Order extinguishes the liability of Scottish Power plc in respect of the principal of loans made from the National Loans Fund. The total liability extinguished is £508,688,000.00.

These loans were made to the South of Scotland Electricity Board (“SSEB”). The liability to repay them is comprised in the property, rights and liabilities of the SSEB which on 31st March 1990, the appointed transfer date, vested under section 67(4) of the Electricity Act 1989 in Scottish Power plc, one of the nominated successor companies, having been allocated to that company by a transfer scheme under section 67(1). The liability to repay the loans thus vested in Scottish Power plc so that the loans are “relevant loans” for the purposes of section 80 of the Electricity Act 1989 and liability can he extinguished by Order under that section. The extinguishment is effected on 29th April 1991.

The Electricity Act 1989 (Nominated Companies) (Scotland) Order 1989 (S.I. 1989/2448) nominated the successor companies. The Electricity Act 1989 (Transfer Date) (Scotland) Order 1990 (S.I. 1990/197) fixed the transfer date. The SSEB Transfer Scheme was made on 31st January 1990 and approved with modification by the Secretary of State on 28th February 1990.