Designation of NNB Generation Company (SZC) Limited
These documents set out the designation of NNB Generation Company (SZC) Ltd under the Nuclear Energy (Financing) Act 2022.
Documents
Details
The 2022 Nuclear Energy (Financing) Act established the legislative framework for the nuclear Regulated Asset Base (RAB) model to support the design, construction, commissioning, and operation of new nuclear energy projects, creating an additional method for funding future nuclear projects.
The first step in potentially allowing a nuclear company to benefit from the RAB model is for the Secretary of State to determine whether to designate the relevant nuclear company in relation to its nuclear project. The Secretary of State may only designate a nuclear company if the 2 criteria laid out in section 2(3) of the Act as follows are met:
- the Secretary of State is of the opinion the development of the nuclear project is sufficiently advanced to justify the designation of the nuclear company in relation to the project
- the Secretary of State is of the opinion that designating the nuclear company in relation to the project is likely to result in value for money
The Nuclear RAB model: statement on procedure and criteria for designation set out the procedure that the Secretary of State expects to follow in determining whether to exercise the designation power and how the Secretary of State expects to decide whether the designation criteria are met.
In accordance with section 3(2) of the Act, we consulted with the Environment Agency, Office for Nuclear Regulation, Ofgem and the NNB Generation Company (SZC) Limited on the draft reasons for designation. We have now published the responses to that consultation, and the government’s response to their points.
Taking into account that feedback, the Secretary of State has taken the decision to designate the project.
This direction to designate gives notice to the project that the Secretary of State has taken the decision to designate.
The reasons for designation document sets out the Secretary of State’s reasoning behind the decision.