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NEWS
This week's edition of Energy weekly highlights includes: a High Court decision finding the climate plan proposed by the Secretary of State for Energy Security and Net Zero to be unlawful, Ofgem's response to a consultation on proposed changes to the licence fee cost recover principles (LFCRP), the Department for Energy Security and Net Zero (DESNZ)'s consultation on a new national policy statement for fusion energy, and a call for evidence on non-pipeline transport and cross-border CO2 networks, and the invitation by The North Sea Transition Authority (NSTA) for interested parties to apply for an out of round Carbon Dioxide Appraisal and Storage licence. This week's highlights also include the National Grid's launch of the Great Grid Partnership to support the delivery of nine accelerated strategic investment projects, and a North Sea Transition Authority announcement on the opening of applications for out-of-round Carbon Dioxide Appraisal and Storage Licences.
NEWS
This week's edition of Energy weekly highlights includes: a News Analysis on the Greenhouse Gas Removals business model documentation published by the Department for Energy Security and Net Zero (DESNZ) earlier this year. DESNZ has also opened a call for evidence seeking views on enabling Hydrogen to Power (H2P) participation in the Capacity Market (CM) and technical changes to interconnector de-rating factors, and published an important policy statement on hydrogen infrastructure strategic planning. In addition this week, the Department for Environment, Food and Rural Affairs has launched a consultation seeking views on an application from the Nuclear Industry Association for a regulatory justification decision on the Rolls-Royce small modular reactor (SMR) design.
PRACTICE NOTES
This Practice Note is a horizon scanner tracking key future developments in the field of energy law in Great Britain (GB). It provides details of key dates for your diary (including forecasted dates where the actual date is unknown) and relevant commentary in relation to: • Legislation ◦ Bills in progress ◦ Acts not in force, partially in force or subject to staged introduction ◦ Statutory Instruments (SIs) in progress ◦ SIs partially in force or subject to staged introduction • Cases ◦ Supreme Court ◦ Court of Appeal • Other key developments ◦ Consultations in progress ◦ Calls for evidence/input in progress This horizon scanner does not cover past developments, such as legislation fully in force or final judgments. For details of past developments in the field of energy law in GB, see: • Energy consultations tracker 2026 • Energy legislation tracker 2026 • Energy cases tracker • Contracts for Difference (CfD) tracker • Capacity Market (CM) tracker • Low carbon hydrogen projects—legislation and policy tracker • Great British
PRACTICE NOTES
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. This new starter guide provides an introduction to energy law and practice. It is aimed at trainee solicitors and others who are new to energy law.  This guide is intended to help you make the most of the Lexis®+ UK Energy materials by explaining how to find them, sign up for email alerts, access Q&As and submit a query to the LexisAsk team, among other things. Where something is not covered in this introductory guide, use the ‘Topics & Tasks’ tab on the Energy landing page to browse further content across the Practice Area. Those who are new to energy law are also likely to find the ‘Overviews’ in each of the subtopics within the Practice Area useful. These documents set out an overview of links to relevant content within the
NEWS
The Local Government & Social Care Ombudsman has sanctioned Enfield council following an investigation into unsuitable temporary accommodation that was provided to a disabled father and his family for three years. The family was eventually provided with a new home by a local housing association in August 2020. Enfield council was instructed to apologise to the family and conduct a fresh Care Act assessment of the man. The council also agreed to pay the family £250 for every month they were in unsuitable accommodation.
PRACTICE NOTES
This guide enables organisations to incentivise suppliers to meet contractual climate obligations, and support the organisation’s climate targets. For detailed guidance on enforcing and incentivising
PRACTICE NOTES
The Pension Regulator’s moral hazard powers Among the various powers provided to the Pensions Regulator under the moral hazard legislation of the Pensions Act 2004 (PeA 2004) are the powers to issue contribution notices (CNs) and financial support directions (FSDs). Those powers are potentially wide-ranging and draconian. A CN could be imposed on an employer of a defined benefit (DB) scheme and/or any connected or associated person if one of four tests is satisfied, namely: • the material detriment test—where there is an act or a deliberate failure to act that is materially detrimental to the scheme • the main purpose test—where the main purpose of the act or deliberate failure to act was to prevent the recovery of all or part of a debt under section 75 of the Pensions Act 1995 (employer debt) • the employer insolvency test—where, if an employer debt had fallen due, the act or deliberate failure to act would have materially reduced the amount of the debt likely to be recovered by the
NEWS
Commercial analysis: A restrictive covenant in a shareholders’ agreement is akin to a restrictive covenant between the seller and buyer of a business and will benefit from the more liberal approach to enforcement that such agreements attract. That more liberal approach, which is based on the respect that the courts generally show to contract terms freely negotiated by commercial parties of more or less equal bargaining power, permits the protection of a wider range of legitimate interests than is the case with a restrictive covenant in an employment relationship, but even so, the restrictive covenant will be struck down if it goes further than is reasonably necessary to protect the legitimate business interests of the covenantee. The decision also serves as a reminder that the assessment of loss to the covenantee flowing from a breach by a covenantor of a restrictive covenant will often involve a consideration of the hypothetical actions of third parties—what would the customer/contact/client have done if they had not been solicited by the covenantee, such that the claim will properly be framed as a loss of a chance? Written by David Fisher, barrister, and an associate member of New Square Chambers.
PRACTICE NOTES
For freehold and long leasehold land it is possible for any person interested to apply to the court for a declaration under section 84(2) of the Law of Property Act 1925 (LPA 1925) stating whether the land is affected by any restriction and, if so its: • nature • extent, and • enforceability A ‘person interested’ who may make an application includes: • the freehold owner of the land benefitting from or burdened by the restrictive covenant • a mortgagee of such a freehold owner • a person contractually entitled to the land benefitting from or burdened by the restrictive covenant, or • a person with an interest under an option over land benefitting from or burdened by the restrictive covenant The terms of s 84(2) are broad and can be used to test the validity or enforceability of restrictive covenants, potentially leading to those covenants which are plainly unenforceable being 'cleared off'. However, a declaration under s 84(2) operates in rem
NEWS
Arbitration analysis: this case involves a build and lease agreement of real estate for a department store in a valued commercial area of Rio de Janeiro. The lessee (Leader) filed for chapter 11 protection (‘recuperação judicial’) and defaulted on the payments of the lease. The lessor terminated the lease agreement and demanded the payment of a contractual fine, which was settled through a bank guarantee. The lessee filed a lawsuit questioning the debt and the validity of various clauses of the lease agreement. The lease agreement had an arbitration clause which indicated an arbitral institution that ceased to exist in 2015. The court dismissed the case and held that the non-existence of the institution did not render the arbitration agreement invalid. Such an arbitration agreement should be considered a blank clause, not a defective one, and therefore arbitration remains mandatory. Written by Rodrigo Garcia da Fonseca, admitted to practice in Brazil, partner of Fonseca e Salles Lima Advogados Associados and president of the Centre of Mediation and Arbitration of the Brazil-Canada Chamber of Commerce (CAM-CCBC).
GLOSSARY
The action of compelling a party to comply with a judgment where it has not been complied with voluntarily and the time ordered for compliance has expired.
PRACTICE NOTES
ARCHIVED: This Practice Note has been archived and is not maintained. FCA approach on the supervision of financial promotion This Practice Note provides information on how the Financial Conduct Authority (FCA) ensures that financial promotions issued by firms are compliant with its rules, and includes examples of enforcement action when non-compliant promotions have been identified. For more information about the financial promotion regime more generally, see Practice Note The financial promotion regime—essentials. Over recent years, the FCA has sought to embed an outcomes-focused approach to supervision whilst retaining aspects of a conduct-focused approach. Following a March 2018 consultation, the FCA set out its approach to supervision in March 2019. In the document, the FCA noted that it supervises most firms as members of a portfolio of firms that share a common business model. The FCA analyses each portfolio and agrees a strategy to take action on firms posing the greatest harm. The regulator communicates its expectations, priorities and examples of good or poor practice. For example, Day-to-day supervision is therefore done by