| Short Title: | Electricity (Miscellaneous Provisions) Act 2003 |
| Type: | Public General Act |
| Parliament: | Parliament of the United Kingdom |
| Long Title: | An Act to make provision in connection with the provision of financial assistance to, or the acquisition of any securities of or any part of the undertaking or assets of, British Energy p.l.c. or any of its subsidiaries; to provide for the repeal of Part 2 of the Electricity Act 1989; to amend Schedule 12 to that Act and to make provision for undertakings to make grants under that Schedule to be disregarded for tax purposes. |
| Year: | 2003 |
| Citation: | 2003 chapter 9 |
| Introduced Commons: | 27 January 2003 (Second Reading) |
| Introduced Lords: | Lord Sainsbury of Turville 3 March 2003 (Second Reading) |
| Territorial Extent: | Great Britain, excluding Northern Ireland |
| Royal Assent: | 8 May 2003 |
| Commencement: | 8 May 2003 |
| Amends: | Electricity Act 1989 |
| Status: | Current |
The Electricity (Miscellaneous Provisions) Act 2003 (2003 c. 9) is an Act of the Parliament of the United Kingdom which facilitated the Government's response to the financial difficulties of British Energy.
In the summer of 2002 British Energy, the UK's only private sector nuclear electricity generator, was in serious financial difficulties and was on the point of running out of cash completely. This may have triggered a sudden and unplanned insolvency that would have posed a risk to nuclear safety and the security of electricity supplies. Financial support was therefore required to ensure that nuclear stations could continue to operate safely.[1]
The Government extended a loan facility to the company to allow time for an investigation into the possibilities of a restructuring package to be undertaken. It was also necessary to consider how nuclear liabilities could be dealt with safely, effectively and at least cost to the taxpayer.[2]
The Electricity (Miscellaneous Provisions) Act 2003 received Royal Assent on 8 May 2003. Its long title is ‘An Act to make provision in connection with the provision of financial assistance to, or the acquisition of any securities of or any part of the undertaking or assets of, British Energy p.l.c. or any of its subsidiaries; to provide for the repeal of Part 2 of the Electricity Act 1989; to amend Schedule 12 to that Act and to make provision for undertakings to make grants under that Schedule to be disregarded for tax purposes.’ [3] came into force on the date that it received Royal Assent.
The Act comprises 5 Sections:
The Act is an enabling Act and provides authority to the Secretary of State to incur expenditure on British Energy plc or its subsidiaries.
It amends the Electricity Act 1989 to remove the barrier to the Government acquiring shares in ‘successor companies’ and provides for the repeal of Part 2 of that Act.
It amends the 1989 Act to remove the ceiling on financial assistance by the Government in relation to nuclear liabilities and to change the tax status of such assistance.