The Electricity (Applications for Licences and Extensions and Restrictions of Licences) Regulations 2001

Regulation 5

SCHEDULE 2 DOCUMENTS AND OTHER INFORMATION TO ACCOMPANY AN APPLICATION

Financial Information

1.  Where the applicant is a company, the documents specified in sub-paragraph (1) and, if the applicant is a subsidiary undertaking, also those specified in sub-paragraphs (2) and, if applicable, (3) below.

(1) Copies of—

(a) the most recent audited annual report and accounts of the applicant in respect of which an auditors' report has been prepared, together with that auditors' report;

(b) the audited annual report and accounts of the applicant for the two financial years preceding that to which the accounts referred to in sub-paragraph (a) above relate, together with the appropriate auditors' reports; and

(c) such interim accounts and management accounts (whether audited or not) as may have been prepared in respect of a period more recent than that covered by any of the documents specified in sub-paragraphs (a) and (b) above.

(2) Copies of—

(a) the most recent audited annual accounts in respect of the group of which the subsidiary undertaking forms part and in respect of which an auditors' report has been prepared, together with that report;

(b) the audited annual accounts in respect of that group for the two financial years preceding that to which the accounts referred to in sub-paragraph (a) above relate, together with the appropriate auditors' reports; and

(c) such interim accounts and management accounts for that group (whether audited or not) as may have been prepared in respect of a period more recent than that covered by any of the documents specified in sub-paragraphs (a) and (b) above.

(3) If the documents specified in sub-paragraph (2) above do not include the consolidated audited annual accounts for any parent undertaking or subsidiary undertaking of the applicant established outside Great Britain, copies of such accounts, together with any auditors' reports, as indicate the financial state of affairs of the group in question—

(a) at the time of the application; and

(b) at the end of each of the three financial years preceding that time.

2.  Where the applicant is not a company, such accounts and other information as indicate the financial state of affairs of the applicant and its profit and loss, and the statements for the most recent period, together with copies of the latest audited annual accounts where such accounts have been prepared, and of any person in whom effective control of the applicant resides—

(a) at the time of the application; and

(b) at the end of each of the three financial years preceding that time.

3.  Where any of the documents mentioned in paragraph 1 or, where applicable, paragraph 2 above is not supplied, an explanation of why it is not supplied together with such financial information to the like effect as can reasonably be supplied.

4.  A statement giving such further particulars (if any), whether by way of financial projections, sources of finance or otherwise, as will, in conjunction with such information and documents as is provided in accordance with paragraphs 1, 2, or 3 above, indicate whether the applicant would be likely to be able to finance the activities authorised by its licence if the application were granted.

Proposed business

5.  An outline statement of the business proposals, for that business of the applicant to which the application relates, for the next five years including annual forecasts of costs, sales and revenues and project financing, stating the assumptions underlying the figures provided. (The statement of the first year’s forecasts of costs, sales and revenues and project financing to be broken down on a month by month basis.)

6.  Details of any expected subsequent substantial capital outflows including major decommissioning costs.

7.  Estimates of net annual cash flows for subsequent periods sufficient to demonstrate the financial security and feasibility of the project(s) to which the application relates.

Expertise of applicant

8.  A statement giving such particulars of the applicant, and of any sub-contractors or other persons on whose expertise the applicant proposes to rely, as may indicate whether the applicant has or will acquire the necessary skills to undertake the activities in respect of which the application is made.

Interpretation

7.  In this Schedule—

• “annual accounts” has the meaning given by section 262(1) of the 1985 Act and shall be construed in accordance with section 261(2) of that Act;

• “auditors' report” means a report prepared under section 235(1) of the 1985 Act;

• “company” means

  (i)

  a company within the meaning of section 735 of the 1985 Act; or

  (ii)

  a body corporate, incorporated in and having a principal place of business in Great Britain, other than a body corporate mentioned in section 718(2) of the 1985 Act;

• “group” has the meaning given by section 262 of the 1985 Act;

• “group accounts” means such accounts as are required to be prepared by section 227 of the 1985 Act, or, as the case may be, delivered under section 228(2)(e) of that Act, together with any accounts required to be delivered in accordance with section 243(2) of that Act;

• “parent undertaking” and “subsidiary undertaking” have the meanings given by section 258 of the 1985 Act; and

• “the 1985 Act” means the Companies Act 1985.