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PRACTICE NOTES
This Practice Note provides an overview of the Clean Industry Bonus (CIB), launched by the UK government in November 2024, with the first application window held from February–April 2025, to support the deployment of renewable energy projects using more sustainable domestic supply chains. It explains what the CIB is and the energy projects it applies to, both initially and looking ahead to the future. The Practice Note then considers why the CIB has been introduced; what the legal basis for it is; the key elements and legal issues in relation to the CIB; and how allocation of funding works under the scheme. Finally, it considers some practical implications of the CIB for renewable project developers and funders. What is the Clean Industry Bonus? The CIB is a mechanism designed to support the deployment of renewable energy projects in the UK that have invested in environmentally, economically and/or socially sustainable domestic supply chains. Initially, its scope is limited to offshore wind projects (fixed-bottom and floating) seeking subsidy support through the Contracts for Difference
FLOWCHARTS
This Flowchart illustrates the circumstances in which a low carbon power generator is required to submit an application for the Clean Industry Bonus (CIB) in connection with the Contracts for Difference (CfD) subsidy regime. It explains when a CIB application is and is not required, its interface with the CfD application
PRACTICE NOTES
This Practice Note looks at the key features of the supplier obligation, which is a compulsory levy on Great Britain’s licensed electricity suppliers to fund the Contracts for Difference (CfD) low carbon subsidy mechanism. It also looks at the exemptions available in respect of electricity supplied to electricity intensive industries (EIIs) and in respect of electricity sourced from renewable generators located in other EU Member States (known as ‘Green Excluded Electricity’). Note that additional commentary on the issues discussed in this Practice Note in the context of the regulation, consenting and incentivisation of the net zero energy transition is available in the following textbook that we have published: Collinson and Hockman on Energy Law: Regulating, Consenting and Incentivising the Energy Transition. What is the background to the CfD regime and Electricity Market Reform? The Electricity Market Reform (EMR) programme was developed by government between 2010 and 2015 to make changes to the Great Britain (GB) electricity system, in order to promote investment in secure and affordable low carbon energy. This was necessary
GLOSSARY
A type of derivative contract in which two parties agree to exchange the difference in value of a specified asset—eg currency, commodity, share or index—between the time the contract is opened and the time it is closed. The contract payout will be the difference in the price of the asset between these two times. Contracts for difference (CFDs) are similar to spread betting. CFDs may potentially be used for insider dealing and market manipulation and are therefore within the scope for the Market Abuse Regulation (EU) 596/2014. CFDs are a potential source of harm to retail investors. The Financial Conduct Authority (FCA) has imposed restrictions on the terms on which retail customers may enter into CFDs, including limits on a customer’s leverage, closing out a customer’s position when their funds fall to 50% of the margin needed to maintain their open positions on their CFD account, and a requirement that a client cannot lose more than the total funds in their CFD account.
PRACTICE NOTES
This Practice Note provides an overview of the key legislation and regulation impacting business to business (B2B) contracts for the sale and supply of goods. It considers the use of standard terms and conditions versus bespoke agreements when documenting supply of goods transactions. It also provides an overview of different types of contracts for the supply of goods and the key terms in those contracts, including provisions dealing with the description and specification of the goods, price and payment, delivery, acceptance, title and risk, retention of title, and warranties. For guidance on legislation and regulation impacting B2B contracts for the supply of services, see Practice Note: Contracts for the supply of services—business to business. For guidance on considerations for commercial contracts more generally, see Practice Note: Key terms and conditions in commercial contracts. The supply of goods and services to consumers is significantly regulated and is not covered by this Practice Note. For guidance on business to consumer (B2C) contracts, see: Trading with consumers—overview. Key legislation and regulation The key
PRACTICE NOTES
Apportioning service charge—the standard conditions In sales of investment properties where there are often many occupational tenancies with rental, service charge and insurance rent payments, sinking funds and rent reviews ongoing, the general regimes set out by both the Standard Commercial Property Conditions (Third Edition – 2018 Revision) and the Standard Conditions of Sale (Fifth Edition – 2018 Revision) (together the 'Standard Conditions') are often amended to deal more specifically with apportionments of these charges and transfer of sinking funds. The Standard Conditions provide as follows: • Standard Commercial Property Conditions (Third Edition – 2018 Revision) (SCPC) ◦ SCPC 9.3.2 (formerly SCPC 8.3.2 in the Second Edition) requires the apportionment date to be the date of actual completion (for sales with vacant possession and/or where the seller has opted to take both rental income and interest for any period of delay in completion) — otherwise the apportionment is made on the contractual completion date, regardless of whether completion takes place later ◦ SCPC 9.3.3 (formerly SCPC 8.3.3 in the Second
PRACTICE NOTES
This Practice Note looks at the requirements of the Law of Property (Miscellaneous Provisions) Act 1989 (LP(MP)A 1989) for creating a valid contract for the sale, or other disposition, of an interest in land. It provides guidance on signing and exchanging contracts for the sale of land, the requirements for varying a property contract and the options to consider when a contract does not meet the statutory requirements for a valid contract. Introduction A contract for the sale, or other disposition, of an interest in land is void unless it complies with LP(MP)A 1989, s 2. This provides that it must: • be in writing • contain or incorporate all of the terms expressly agreed by the parties in one document or, where contracts are exchanged, in each, and • be signed by or on behalf of each of the parties to it The application of LP(MP)A 1989, s 2 is most commonly encountered in the context of: • contracts for the sale and purchase of land • agreements for lease (although
GLOSSARY
The CCR 2013 also applies to contracts for the supply of digital content not on a tangible medium. This is not expressly defined in the CCR 2013 but would cover, for example, contracts for music or film downloads or streaming.
PRACTICE NOTES
This Practice Note provides an overview of some of the key legislation and regulation impacting business to business (B2B) contracts for the supply of services. It considers the Supply of Goods and Services Act 1982 (SGSA 1982), Equality Act 2010 (EqA 2010), Bribery Act 2010 (BA 2010), Criminal Finances Act 2017 (CFA 2017), Economic Crime and Corporate Transparency Act 2023 (ECCTA 2023), Transfer of Undertakings (Protection of Employment) Regulations 2006 (TUPE), SI 2006/246, Modern Slavery Act 2015 (MSA 2015), data protection laws and statutory controls on ipso facto clauses to the extent that they impact the supply of services. The Practice Note considers the use of standard terms and conditions versus bespoke agreements for use in documenting supply of services transactions. It also provides an overview of different types of contract for the supply of services, and some of the key terms in those contracts. Sector specific legislation and regulation is not considered. B2B contracts for the sale and supply of goods are considered in Practice Note: Contracts for the sale and supply of goods—business
PRECEDENTS
Please click for the Precedent Contracts register. This register has been created in Microsoft Excel and cannot be downloaded to Microsoft Word. This Precedent Contracts register is aimed at in-house lawyers working in commercial organisations. It will enable you to ensure all contractual documentation is systematically recorded. Documentation might include, eg agreements, deeds, leases, confidentiality agreements, NDAs, etc. It is designed
PRACTICE NOTES
This Practice Note considers the specific situations where a contract is required by law to be in writing: assignments, contracts for the sale of land, equitable mortgages, assents, transfers of shares, transfers of intellectual property rights, and guarantees. When a written contract is beneficial or a necessity Contracts can be formed in one of three ways: • orally • by conduct, or • ‘under hand’ (in writing) For more information on contract formation, see: Formation and interpretation—overview. Simple contracts are created in any of the above manners in ‘simple form’, whereas deeds must be executed in ‘solemn form’. See Practice Notes: Deeds and Executing documents—deeds and simple contracts. There are certain situations when a written contract is required by law or is necessary to satisfy registration requirements. Contracts are required by statute to be made or evidenced in writing for: • assignments • contracts for the sale or other dispositions of an interest in land (as opposed to the actual conveyance, which must be by deed) • dispositions of an equitable interest or trust • assents • transfers
NEWS
Dispute Resolution analysis: The Privy Council has overturned a decision of the Court of Appeal of the Eastern Caribbean, thereby upholding the decision of the first instance judge who had allowed an appeal from a decision of arbitrators that they were bound by authority to find that the damages claimed by Global Water Associates (Global) were too remote to be recoverable. Global had been unable to operate a water treatment plant because it had not been built as a result of a breach of contract by the government of the British Virgin Islands. In the event the losses resulting from the breach were within the reasonable contemplation of the parties and accordingly were not too remote to be recoverable. Written by Charles Joseph, barrister at Tanfield Chambers.