Nuclear sector projects The UK nuclear market for construction industry supply chain members is significant. The Nuclear Decommissioning Authority projected spend of £3.3bn for the financial year 2015/16 purely in relation to civil decommissioning—add in military decommissioning and the significant future value of the nuclear new build market and the overall market is huge. The sector requires a wide range of construction-related inputs, from large-scale civil engineering, demolition and project management, through to design services and facilities management (and much more besides). Some of these services require specialist nuclear know-how, others do not (although all members of the nuclear supply chain need to be aware of the special considerations which apply to working in the nuclear sector). The nuclear sector is heavily regulated, especially in the UK, and the contracting structures and documents used can be correspondingly complex. This Practice Note provides an introduction to the sector from a legal adviser's perspective. Sector background The UK nuclear sector can be divided into: • decommissioning (of which civil (ie non-MoD) decommissioning represents the significant majority, and hence will be the focus of this Practice Note), and • a relatively fledgling new build market Decommissioning Simply put, nuclear decommissioning entails taking a designated nuclear site (often—but not always—the site of a nuclear power station which has ceased operating) and returning it to a safe non-radioactive, cleared state. There are numerous stages to this, and the detail
Industry Bodies and Codes—Nuclear Energy Industry Bodies Electricity Settlements Company Ltd (ESC) The ESC is the Capacity Market ‘Settlement Body’, responsible for administering capacity payments to, and penalty payments from, those who are subsidised by the Capacity Market. In addition, as part of this role the ESC administers the payments from licensed electricity suppliers which fund the payments the ESC makes to those subsidies by the Capacity Market. The ESC was appointed to this role pursuant to Capacity Regulations, SI 2014/2043, reg 80 and is wholly owned by the government’s Department of Business, Energy & Industry Strategy (BEIS). The relationship between the ESC and its sole shareholder, BEIS, is governed by a Framework Document. In practice, ESC shares an office, website, and senior officers with the Low Carbon Contracts Company Ltd (LCCC), which is the low carbon Contract for Difference (CfD) mechanism counterparty The LCCC is discussed in more detail in: Industry Bodies and Codes—Renewable Energy. National Grid Electricity Transmission plc (NGET) NGET own the onshore electricity transmission system in England and Wales. The ultimate parent company of NGET is National Grid plc (see below). Key subsidiaries of NGET, and their respective roles, are set out separately below. National Grid Electricity System Operator (NGESO) As of 1 April 2019, NGESO is licensed by Ofgem to operate the whole of the GB onshore and offshore
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Welcome to the weekly highlights from the Lexis®PSL Environment team for the week ending 16 February 2017. This week’s highlights includes feature articles relating to the recently published draft Scottish Energy Strategy and a £2 million fine imposed on Southern Water for water pollution offences. We also include news items relating to an EU review of air pollution prevention measures, a final warning issued to the UK and other EU countries over air pollution, the House of Lords EU Energy and Environment Sub-Committee report on protecting environmental safeguards in the face of Brexit, calls for fast track approval for low risk pesticides, updates relating to the Electricity Market Reform and the Capacity Market, European Parliament support for revision to the EU Emissions Trading Scheme (EUETS), new guidance for monitoring bioaerosols at regulated facilities, two updates concerning environmental reporting, an update relating to the Health and Safety Executive’s cost dispute process, an award of damages to an employee for work-related asbestos injuries and proposals to amend Annex II of the International Convention for the Prevention of Pollution from Ships (MARPOL Convention). We also include items on a new Lloyds Register report on nuclear power, publication of the civil nuclear cyber security strategy, update to guidance on geological disposal of waste, a study finding that renewable energy subsidies may be unnecessary post 2020, proposals for a change to the support for biomass-Combined Heat and Power (CHP) plant offered under the Renewable Heat Incentive (RHI) scheme, publication of new guidance on farmland sewage sludge, the Department for Transport (DfT’s) new powers over low emission vehicles and plans to tackle greenhouse gas emissions from road freight, agreement for amended EU type approval rules for vehicles following the Volkswagen emission scandal, new guidance for licensees applying for consent for hydraulic fracturing and a £500,000 fine imposed on a waste company for leachate offences. In addition we cover relevant updates from other practice areas and include updates from our consultation and legislation trackers. We have also updated several of our Practice Notes following recent changes to the Civil Procedure Rules (CPR) relating to Aarhus Convention claims.
Welcome to the weekly Energy highlights from the Lexis®PSL Environment team for the week ending 16 February 2017. This week’s highlights includes a deeper look at the recently published draft Scottish Energy Strategy as well as the weeks’ key news items including new guidance for licensees applying for hydraulic fracturing consent, publication by the government of phase one of the evaluation of the Transitional Arrangements (TA) for Demand-Side Response (DSR), the publication of the first set of data from the electricity demand reduction (EDR) pilot scheme, a Lloyds Register nuclear power report stating that nuclear power generation technologies are now cost competitive with fossil fuels, the Department for Business, Energy and Industrial Strategy’s (BEIS) civil nuclear cyber security strategy, an updated geological disposal guide from Radio Waste Management (RWM), an EU study suggesting mature renewable technologies subsidies may no longer be needed after 2020 and proposals for change to the support for biomass-Combined Heat and Power (CHP) plant offered under the Renewable Heat Incentive (RHI) scheme from BEIS. We also include updates on new and existing consultations published by BEIS, Ofgem, the National Infrastructure Commission and the Welsh Government, upcoming legislation, and highlight content from other practice areas which may be of interest to energy lawyers. This week, we have published new Practice Notes relating to conventional oil and gas, unconventional oil and gas, and nuclear energy, and have updated our Practice Note on the onshore licensing regime for oil and gas.
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