Electricity Act 1989

Section 97.

SCHEDULE 12Nuclear Liabilities: Financial Assistance

Grants by Secretary of State

1(1)Subject to paragraph 4 below, the Secretary of State may, with the approval of the Treasury, make grants of such amounts as he thinks fit towards qualifying expenditure, that is to say, expenditure incurred or to be incurred by any person in connection with—

(a)the storage or reprocessing of nuclear fuel;

(b)the treatment, storage or disposal of radioactive waste; or

(c)the decommissioning of any installation the operation of which requires a licence under section 1 of the [1965 c. 57.] Nuclear Installations Act 1965.

(2)Subject to paragraph 4 below, the Secretary of State may, with the approval of the Treasury, enter into an agreement with any person under which the Secretary of State undertakes that, if such conditions as may be specified in the agreement are satisfied, he will exercise the power conferred by this paragraph in such manner and to such extent as may be specified in the agreement.

(3)A grant under this paragraph may be made at such times, in such manner and subject to such conditions as the Secretary of State with the approval of the Treasury may determine.

(4)Any sums required by the Secretary of State for making grants under this paragraph shall be paid out of money provided by Parliament.

Loans by Secretary of State

2(1)Subject to paragraph 4 below, the Secretary of State may, with the approval of the Treasury, make loans of such amounts as he thinks fit towards qualifying expenditure.

(2)A loan under this paragraph—

(a)may be made at such times, in such manner and subject to such conditions as the Secretary of State may with the approval of the Treasury determine; and

(b)shall be repaid to him at such times and by such methods, and interest thereon shall be paid to him at such rates and at such times, as he may, with the approval of the Treasury, from time to time direct.

(3)Any sums required by the Secretary of State for making loans under this paragraph shall be paid out of money provided by Parliament.

(4)Any sums received under sub-paragraph (2) above by the Secretary of State shall be paid into the Consolidated Fund.

(5)It shall be the duty of the Secretary of State—

(a)to prepare in respect of each financial year, in such form as the Treasury may direct, an account of sums issued to him for loans under this paragraph or received by him under this paragraph, and of the disposal by him of those sums; and

(b)to send the account to the Comptroller and Auditor General not later than the end of November in the following financial year;

and the Comptroller and Auditor General shall examine, certify and report on the account and shall lay copies of it and of his report before each House of Parliament.

Guarantees by Secretary of State

3(1)Subject to paragraph 4 below, the Secretary of State with the approval of the Treasury may guarantee, in such manner and on such terms as he may think fit, the repayment of the principal of, the payment of interest on, and the discharge of any other financial obligation in connection with, any sums which are borrowed from a person other than the Secretary of State for the purpose of meeting qualifying expenditure.

(2)Immediately after a guarantee is given under this paragraph, the Secretary of State shall lay a statement of the guarantee before each House of Parliament; and immediately after any sum is paid for fulfilling a guarantee so given, the Secretary of State shall so lay a statement relating to that sum.

(3)Any sums required by the Secretary of State for fulfilling a guarantee under this paragraph shall be paid out of money provided by Parliament.

(4)If any sums are paid out in fulfilment of a guarantee given under this paragraph the person whose obligations are so fulfilled shall make to the Secretary of State, at such times and in such manner as the Secretary of State may from time to time direct—

(a)payments of such amounts as the Secretary of State may so direct in or towards repayment of the sums so paid out; and

(b)payments of interest on what is outstanding for the time being in respect of sums so paid out at such rate as the Secretary of State may so direct;

and the approval of the Treasury shall be required for the giving of a direction under this sub-paragraph.

(5)Any sums received under sub-paragraph (4) above by the Secretary of State shall be paid into the Consolidated Fund.

Financial limits

4(1)The aggregate of the following, namely—

(a)grants made or agreed to be made by the Secretary of State under paragraph 1 above;

(b)any amounts outstanding by way of principal in respect of—

(i)loans made by the Secretary of State under paragraph 2 above; or

(ii)sums paid by the Secretary of State in fulfilment of guarantees under paragraph 3 above,

shall not exceed £1,000 million or such greater sum, not exceeding £2,500 million, as the Secretary of State may by order specify.

(2)No order shall be made under this paragraph unless a draft of the order has been approved by a resolution of the House of Commons.

Interpretation

5In this Schedule “qualifying expenditure” has the meaning given by paragraph 1(1) above.