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Energy Act 2023

Contents

Part 14: Civil Nuclear Sector

Chapter 1: Civil Nuclear Sites

Section 302: Application to the territorial sea of requirement for nuclear site licence

  1. Section 302 amends section 1 and section 26 of the Nuclear Installations Act 1965 and section 68 of the Energy Act 2013 (EA 2013) to make it expressly clear that certain nuclear sites located wholly or partly in or under the sea (within the boundaries of the territorial sea adjacent to the UK) require a licence and are regulated by the Office for Nuclear Regulation.

Section 303: Decommissioning of nuclear sites etc

  1. Section 303 amends provisions of the Nuclear Installations Act 1965 which concern nuclear third party liability and the processes for revoking and varying a nuclear site licence.
  2. It confirms that a nuclear site licence is required for decommissioning.
  3. Section 303 changes the conditions that must be satisfied before a nuclear site licence can be varied to exclude part of a site from that licence. The new conditions vary depending on the former use of that part of the site. The section also requires the appropriate national authority to consult the relevant Health and Safety Executive before revoking a nuclear site licence and removes a nuclear site licence holder’s ability to unilaterally surrender their licence. Licence holders will still be able to request that the appropriate national authority revoke or vary their licence.
  4. Section 303 also changes the conditions that must be satisfied in order to end the period of responsibility in respect of part of a nuclear licence site. The new conditions are based on the risk posed by the relevant part of the site. Where relevant, these amendments implement the OECD Nuclear Energy Agency’s 2014 "Decision and Recommendation of the Steering Committee Concerning the Application of the Paris Convention to Nuclear Installations in the Process of Being Decommissioned".
  5. Section 303 also ensures that, where a nuclear site licence is varied to remove what would otherwise be a relevant disposal site from the licence, the duties in section 7B of the Act apply to the operator of that relevant disposal site.

Section 304: Excluded disposal sites

  1. Section 304 excludes certain low-risk disposal sites to from the nuclear third-party liability regime, provided certain conditions are met. In doing so, it partly implements the OECD Nuclear Energy Agency’s 2016 "Decision and Recommendation Concerning the Application of the Paris Convention on Third Party Liability in the Field of Nuclear Energy to Nuclear Installations for the Disposal of Certain Types of Low-level Radioactive Waste". Regulations made using powers in this section will complete the implementation of the Decision.
  2. Section 304 also sets out the steps to be taken if an excluded disposal facility subsequently accepts unsuitable waste, i.e., waste that puts them in breach of the above conditions.

Section 305: Accession to Convention on Supplementary Compensation for Nuclear Damage

  1. Section 305 introduces the Schedule 22 which contains the amendments necessary to implement the Convention on Supplementary Compensation for Nuclear Damage (CSC). Both section 305 and the Schedule will come into force on the day on which the CSC comes into force in respect of the United Kingdom (and the Secretary of State must publish a notice of the date of that day as soon as possible afterwards).

Section 306: Power to implement Convention on Supplementary Compensation for Nuclear Damage

  1. Section 306 gives the Secretary of State the power to make modifications to Schedule 22, the Nuclear Installations Act 1965 and other relevant legislation in relation to UK’s accession to and implementation of the CSC (two months after Royal Assent). This power may be used to implement the CSC, or for the purposes of dealing with any other matter arising out of, or related to, the CSC. This power would be exercised through making regulations subject to the affirmative procedure to ensure the opportunity for parliamentary scrutiny.

Chapter 2: Civil Nuclear Constabulary

Section 307: Provision of additional police services

  1. Section 307 amends the Energy Act 2004 (c. 3) to insert a new section 55A, which creates an additional statutory function for the Civil Nuclear Constabulary (CNC). The new function will enable the CNC to provide a wider range of policing services beyond the civil nuclear sector, in the interests of national security. This could be used to enable the CNC to provide armed guarding services to other facilities that provide vital services, or to deliver other protective policing services in response to emerging threats. The provision of additional police services by the CNC may only be provided with the consent of the Secretary of State and is subject to safeguards to protect the CNC's primary civil nuclear security function and ensure transparency (subject to the needs of national security).
  2. Section 307 also makes consequential amendments in relation to the CNC’s jurisdiction and provides a power for the CNPA to enter into agreements. It also adds the CNC to the definition of "extra police services" in the Counter-Terrorism Act 2008 (c.28) in relation to the policing of gas facilities in England, Wales and Scotland.

Section 308: Provision of assistance to other forces

  1. Section 308 amends the Energy Act 2004 to insert a new section 55B, which enables the CNC’s Chief Constable to provide CNC officers or other assistance to another police force in England, Wales or Scotland, in line with powers available to the England and Wales territorial police forces, the British Transport Police and the Ministry of Defence Police. The provision enables the CNC, in response to a request from the Chief Constable of another force, to provide support for spontaneous or planned deployments, and/or to provide specialist support as required, and is subject to safeguards to protect the CNC’s primary civil nuclear security function. Where the CNC is providing assistance under this arrangement, CNC officer(s) would be under the direction and control of the chief officer of the requesting force and would have the same powers and privileges as a member of that force.

Section 309: Cross-border enforcement powers

  1. Section 309 amends the Criminal Justice and Public Order Act 1994 (c.33) so that members of the CNC are able to exercise powers in Part 10 of that Act. Sections 136 and 137 of the Criminal Justice and Public Order Act 1994 deal with cross border enforcement by the police, whereby an individual who is suspected of committing an offence in one part of the UK can be apprehended in another part of the UK – either by the execution of a warrant or exercising powers of arrest in the absence of a warrant. In line with powers already available to members of the territorial police forces and the British Transport Police, the amendments will allow the CNC to execute a warrant to arrest a person, or to exercise powers of arrest without a warrant where the person is suspected to committing an offence, in England, Wales or Scotland. The amendments do not allow the CNC to exercise these powers in Northern Ireland since the CNC do not operate in Northern Ireland.

Section 310: Publication of three-year strategy plan

  1. Section 310 amends the legislative requirement for the Civil Nuclear Police Authority to publish a three-year strategy annually, to every three years.

Chapter 3: Relevant Nuclear Pension Schemes

Section 311: Civil nuclear industry: amendment of relevant nuclear pension schemes

  1. Section 311 enables regulations to be made requiring persons with responsibility for pension schemes for public sector employees in the nuclear sector to amend those schemes in line with wider changes to public sector pensions.

Section 312: Meaning of "relevant nuclear pension scheme"

  1. Section 312 defines "relevant nuclear pension scheme" for the purposes of the Chapter.

Section 313: Information

  1. Section 313 gives a person who is required, by regulations under section 311, to amend a relevant nuclear pension scheme the power to require persons with relevant information to provide that information.

Section 314: Further definitions

  1. Section 314 sets out definitions relevant to the provisions about amendment of relevant nuclear pension schemes.

Section 315: Application of relevant pensions legislation

  1. Section 315 enables the Secretary of State to make regulations about the application of relevant pensions legislation, or amending relevant pensions legislation, in connection with the amendment of a relevant nuclear pension scheme in pursuance of regulations under section 311.

Section 316: Procedure for regulations under Chapter 3

  1. Section 316 provides that a statutory instrument containing regulations under any provision of this chapter is subject to the affirmative procedure. It also provides for the disapplication of the hybrid instrument procedure in the House of Lords.

Chapter 4: Great British Nuclear

Section 317: Great British Nuclear

  1. Section 317 allows the Secretary of State for the Department of Energy Security and Net Zero to designate by notice a company as Great British Nuclear (GBN), provided that the company is limited by shares and wholly owned by the Crown.
  2. The Secretary of State would also have a power to revoke the designation of a company as GBN when required.

Section 318: Crown status

  1. Section 318confirms that a company designated as GBN will not have Crown status. It also confirms that GBN’s property will not be regarded as owned by or on behalf of the Crown.

Section 319: Great British Nuclear’s objects

  1. Section 319 sets out GBN’s role as a delivery vehicle for Government policy for new nuclear projects. It sets its objects as a company as undertaking activities that ‘facilitate the design, construction, commissioning and operation of nuclear energy generation projects for the purpose of furthering HM Government’s policies.’
  2. This will enable GBN to have an evolving and enduring role within the civil nuclear sector. GBN will act as an expert-led delivery body with the requisite skills and knowledge to deliver on the policy set by HM Government. It is anticipated that GBN will carry out a variety of functions including, but not limited to, de-risking the early stages in the development of nuclear projects by deploying co-funding from the Government to support the development of selected technologies, ensuring the right financing and site arrangements are in place, amongst a range of other functions.

Section 320: Financial assistance

  1. Section 320 allows the Secretary of State to give financial assistance to GBN to deliver its objectives. This funding can be provided to GBN in any form, including grant or via the acquisition of shares. In addition to providing the funding for GBN’s operating costs, this power will enable GBN to deploy government funding via its subsidiaries, to invest in individual nuclear projects and co-fund technologies through their development.
  2. Section 320 also allows the Secretary of State to provide financial assistance directly to ‘any other person to facilitate the design, construction, commissioning and operation of nuclear energy generation projects.’ This provides flexibility to the Secretary of State when planning future projects and also means that, should GBN cease to exist in the future, the Secretary of State can continue to fund ongoing projects.
  3. Section 320 will allow for financial assistance to be provided by the acquisition of debt instruments.
  4. Funding may be provided subject to conditions set by the Secretary of State and the exact level of funding provided for investment in new nuclear projects will be subject to future spending review decisions.

Section 321: Secretary of State directions and guidance

  1. Section 321 allows the Secretary of State to give Great British Nuclear directions or guidance. Such directions and guidance must be published, and any directions must also be laid before Parliament.
  2. The Government’s policy intention is that GBN will generally be operationally independent. However, given GBN’s broad and potentially shifting responsibilities over time it is considered necessary that the Secretary of State has a mechanism through which to set the strategic direction of GBN in line with government policy.

Section 322: Annual report

  1. Section 322 requires that GBN send a report to the Secretary of State at the end of each financial year outlining its activities undertaken during that year. The Secretary of State will lay this before Parliament, together with any comments he/she wishes to add. This will ensure that Parliament remains informed of the operations of GBN.

Section 323: Annual accounts

  1. As a company under the Companies Act GBN must produce annual accounts and reports. Section 323 requires that GBN send a copy of these to the Secretary of State before the end of the filing period. The Secretary of State would then be required to lay them before Parliament, ensuring Parliament remains informed of GBN’s performance. (This is in addition to the report on GBN’s activities required by section 322).

Section 324: Transfer schemes

  1. Section 324 allows the Secretary of State to make transfer schemes to transfer property, rights and liabilities in connection with GBN.
  2. When a GBN company is designated and as its activities evolve over time, property, rights and liabilities may need to be transferred to or from GBN to other relevant public bodies or companies. Sections 1(a) and (b) list a broad range of potential transferors and transferees to provide flexibility for future transfers.
  3. There may also be future scenarios where GBN assumes or relinquishes involvement in particular civil nuclear generation projects, necessitating the transfer of property, rights and liabilities to or from it.
  4. Section 324 sets out a set of principles, procedures and expectations in relation to the transfer scheme that will help provide clarity to affected parties. For example, to ensure the representations of transferors are taken into consideration, the Secretary of State will be required to consult with them, or any other such person considered appropriate.

Section 325: Transfer schemes: compensation

  1. Section 325 allows the Secretary of State to provide for compensation to a transferor or a person who has suffered loss or damage in consequence of the transfer schemes.
  2. The principle is that a transferor or a person entitled to compensation should be sufficiently compensated by the transferee(s) and/or the Secretary of State for the costs borne by them in connection with the transfer of property, rights and liabilities under the transfer schemes.
  3. The liability for paying this compensation would lie with the transferee or the Secretary of State.

Section 326: Transfer schemes: taxation

  1. Section 326 allows the Treasury to vary the way tax has effect in relation to things transferred under transfer schemes made under section 324. This will ensure that there are no unnecessary circular movements of money within government and will ultimately ensure value for money for government.
  2. This power should only be exercised for transfers between public bodies, private sector transfers will be treated in the same manner as commercial transactions.

Section 327: Transfer schemes: provision of information or assistance

  1. Section 327 will make certain that transfers under the transfer scheme are efficiently carried out without unnecessary obstruction to the provision of essential information or assistance that are required for a transfer. This amendment ensures this by providing the Secretary of State with the ability to direct a person involved in the transfer to provide such information and assistance, for example any relevant documents.

Section 328: Reimbursement and compensation in connection with designation

  1. Section 328 provides that persons that have reasonably incurred expenditure in connection with the designation of a company as GBN be reimbursed by the Secretary of State.

Section 329: Pension arrangements in connection with Great British Nuclear

  1. Section 329 allows the Secretary of State to make provision, by regulations, about pension arrangements in relation to GBN. During future transfers this regulation making power will facilitate the participation of GBN in pension schemes for transferring employees. Before the power is exercised, the relevant pension scheme trustees and principal employers must be consulted. They may also be directed by the Secretary of State to provide relevant information and assistance.

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