Key Facts

• Clause 31 establishes a special administration regime for relevant licensee nuclear companies (RLNCs).
• The objective is to ensure electricity generation continues during construction or operation if an RLNC becomes insolvent.
• Ofgem, with Secretary of State’s permission, may apply to the courts for a special administrator.
• The amendment is proposed for clause 32, page 24, line 24.
• It is modelled on sections 94 and 95 of the Energy Act 2011.
• In cases where a company fails during construction or production, the Government would establish a new company to ensure operations continue.
• Concerns about clauses 32 and 33 regarding consumer protection.
• Clause 41 possibly gives an open-ended mandate to the Secretary of State.
• Comparison made with the special administration regime under the Energy Act 2011 applied to Bulb Energy.
• Amendment 18 addresses what happens if an RLNC administration order is in force but a rescue or transfer of the plant cannot be achieved.
• The amendment would require the Secretary of State to move the assets, liabilities and undertakings of the RLNC to a Government-owned company under certain conditions.
• The minister argues that existing provisions allow for public ownership if deemed necessary without creating an automatic process as proposed by the amendment.
• Clause 33(7)(b) involves omitting the definition of 'non-GB company' from section 171 of the Energy Act 2004.
• Paragraph 4 in the schedule deals with consequential repeals, including sections related to licence modifications under the Smart Meters Act 2018 and Domestic Gas and Electricity (Tariff Cap) Act 2018.
• The Minister agrees to write letters explaining these aspects of the Bill to Committee members.
• New clause 1 seeks additional reporting requirements on the Secretary of State regarding capital and up-front costs.
• Hinkley Point C is now estimated at £22 billion, a 25% increase from the original estimate of £18 billion.
• Sizewell C is expected to cost around £20 billion.
• The legislation aims to save consumers £30 billion overall.
• Initial costs under RAB would be a few pounds per dual-fuel household in this Parliament for projects starting construction in 2023.
• Transparency measures include publishing designation statements and consulting with key independent bodies.
• New Clause seeks full clarity on commitments for new nuclear projects.
• Decommissioning costs are estimated to cost £132 billion over the next 100 years.
• The Energy Act 2008 legislates secure financing arrangements for decommissioning costs.
• The new clause would require the Secretary of State to prepare and publish a report before making payments under section 41(2)(c).
• The proposed amendment could introduce uncertainty over funding pending parliamentary approval.
• The administrator must know that funding is available from day one for swift action and security of supply.
• James Gray acknowledges the points of order from Greg Hands, Alan Whitehead, and Alan Brown.
• The Nuclear Energy (Financing) Bill has been scrutinised in detail by the Committee.
• The Bill is set to be reported without amendments.