The Electricity Act 1989 (Scottish Hydro-Electric plc) Extinguishment of Loans Order 1991

Explanatory Note

(This note is not part of the Order)

This Order extinguishes the liability of Scottish Hydro-Electric plc in respect of the principal of loans made from the National Loans Fund (“NLF”) and of a loan made under section 78 of the Electricity Act 1989. The total liability extinguished is £534,885,600.24.

The NLF loans were made to the North of Scotland Hydro-Electric Board (“NSHEB”). The liability to repay them is comprised in the property, rights and liabilities of the NSHEB which on 31st March 1990, the appointed transfer date, vested under section 67(4) of the Electricity Act 1989 in Scottish Hydro-Electric 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 NLF loans thus vested in Scottish Hydro-Electric plc so that the loans are “relevant loans” for the purposes of section 80 of the Electricity Act 1989. The loan made to Scottish Hydro-Electric plc under the said section 78 is also a relevant loan for those purposes. Liability to repay the principal of all those loans can therefore he extinguished by Order under the said section 80. 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 NSHEB Transfer Scheme was made on 31st January 1990 and approved with modification by the Secretary of State on 28th February 1990.