Energy Act 2004

Part 1 U.K.Members and staff of NDA

Tenure of office by non-executive membersU.K.

1(1)Subject to what follows, the chairman and each of the other non-executive members is to hold and vacate office in accordance with the terms of his appointment.U.K.

(2)Each appointment must state the period for which it is made.

(3)That period must not exceed five years; but a person is eligible for re-appointment (on any number of occasions) from the end of a term of office.

(4)A non-executive member is not eligible to hold office as chief executive or otherwise to be a member of the staff of the NDA.

(5)A non-executive member may at any time resign his office as the chairman or as a member of the NDA (or both) by giving notice of his resignation to the Secretary of State.

(6)If the Secretary of State is satisfied that sub-paragraph (7) applies to the chairman or another non-executive member, the Secretary of State may, by giving him notice to that effect, remove him from office.

(7)This sub-paragraph applies to a person if—

(a)he is an undischarged bankrupt or has had his estate sequestrated without being discharged [F1or a moratorium period under a debt relief order applies in relation to him (under Part 7A of the Insolvency Act 1986)];

(b)he is subject to a bankruptcy restrictions order or an interim bankruptcy restrictions order [F2or a debt relief restrictions order or an interim debt relief restrictions order (under Schedule 4ZB of the Insolvency Act 1986)];

(c)he has made an arrangement with his creditors, or has entered into a trust deed for creditors, or has made a composition contract with his creditors;

(d)he has such a financial or other interest as is likely to affect prejudicially the carrying out by him of his functions as a member of the NDA;

(e)he is unfit for office by reason of misbehaviour; or

(f)he is otherwise incapable of carrying out, or unfit to carry out, the functions of his office.

(8)Before exercising his power under sub-paragraph (6), the Secretary of State must consult the Scottish Ministers.

(9)Oral notice is ineffective for the purposes of sub-paragraph (5) or (6).

Remuneration and pensions of non-executive membersU.K.

2(1)The NDA may pay—U.K.

(a)to the chairman, and

(b)to each of the other non-executive members,

such remuneration and allowances as the Secretary of State may determine.

(2)The NDA may pay, or make provision for paying—

(a)to or in respect of the chairman, and

(b)to or in respect of each of the other non-executive members,

such sums by way of pensions, allowances or gratuities as the Secretary of State may determine.

(3)Where—

(a)a person ceases, otherwise than on the expiry of his term of office, to be a non-executive member, and

(b)it appears to the Secretary of State that there are special circumstances which make it right for him to receive compensation,

the NDA may make a payment to him of such amount as the Secretary of State may determine.

Terms and conditions of executive members of the NDAU.K.

3(1)The chief executive is to hold office on such terms and conditions (including terms and conditions as to remuneration) as the non-executive members determine.U.K.

(2)Each of the other executive members (if any) is to hold office as a member, on such terms and conditions (including terms and conditions as to remuneration) as the non-executive members may determine in his case.

(3)The terms and conditions on which an executive member other than the chief executive becomes or remains an employee of the NDA, or (without being an employee) a member of its staff, are also to be determined by the non-executive members.

(4)If the non-executive members so determine in the case of the chief executive or any of the other executive members, the NDA must—

(a)pay such pensions, allowances or gratuities to or in respect of the chief executive and each of those other members, or

(b)provide and maintain for the chief executive and those other members such pension schemes (whether contributory or not),

as the non-executive members mey determine.

(5)If an executive member—

(a)is a participant in a pension scheme applicable to his membership of the NDA, and

(b)ceases to be an executive member without ceasing to be a member of the NDA’s staff,

he may, if the Secretary of State so determines, be treated for the purposes of the pension scheme as if any service of his (after ceasing to be an executive member) as an employee of the NDA were service as an executive member.

Constitution of NDA for initial periodU.K.

4(1)Until the end of the initial period the NDA is to consist of just those members who have been appointed.U.K.

(2)As soon as practicable after his own appointment takes effect, the chairman must exercise the power to appoint a chief executive.

(3)Appointments of members other than the chairman and chief executive may be made during the initial period only after the appointment of the chief executive has taken effect.

(4)During the initial period the requirements of paragraph 9(1)—

(a)do not apply to a decision to which the chairman is a party if it is made when the chairman is the only non-executive member; but

(b)are not to be capable of being satisfied in relation to a decision made at any other time unless at least two non-executive members are parties to the decision.

(5)The chairman must ensure that proper records are kept of everything he does, while he is the only non-executive member, in the exercise or performance of powers or duties conferred or imposed on the non-executive members.

(6)In this paragraph “the initial period” means the period which begins with the commencement of so much of this Act as provides for the establishment of the NDA and ends with whichever of the following first occurs—

(a)the time when an appointment takes effect that brings the number of members of the NDA up to seven;

(b)the time specified as the end of the initial period in a notice given during that period by the Secretary of State to the NDA for the purposes of this paragraph.

Staffing of the NDAU.K.

5(1)The NDA—U.K.

(a)may appoint such employees, in addition to those who are its members, as it may determine; and

(b)may make such other arrangements for the staffing of the NDA as it thinks fit.

(2)The employees of the NDA who are not its members are to be employed on such terms and conditions, including terms and conditions as to remuneration, as it determines.

(3)The NDA may, in the case of any of its employees who are not its members—

(a)pay to or in respect of those employees such pensions, allowances or gratuities, or

(b)provide and maintain for them such pension schemes (whether contributory or not),

as it determines.

(4)If an employee of the NDA—

(a)is a participant in a pension scheme applicable to his employment, and

(b)becomes an executive member,

he may, if the Secretary of State so determines, be treated for the purposes of the pension scheme as if his service as a member were service as an employee of the NDA.

UKAEA pensions for NDA staffU.K.

6U.K.A pension scheme maintained by the UKAEA under paragraph 7(2)(b) of Schedule 1 to the Atomic Energy Authority Act 1954 (c. 32) may apply to—

(a)members of the NDA, and

(b)members of its staff,

as it applies to persons to whom it applies apart from this paragraph.