This article explores the Infrastructure Bill and its potential impact on UK infrastructure projects if the legislation passes the second reading/debate in the House of Lords, and achieves Royal Assent.
There is discussion on deemed discharge of planning consent conditions, to scrutiny on the prospective regulation of community stakes in 5+MW renewable energy projects onshore and offshore which would include scrutiny on Developers of those projects and the Operator (O&M company) and how they are composed in terms of (share-) structure and participants.
From centralised long-term planning to market-based access: Proposed change i...Amitava Nag
The present transmission planning process in India does not incorporate economic dispatch principle. Transmission Planning is proposed to be done on the basis of projected load of the States and anticipated generation scenario based on economic principles of merit order operation.
Brian T. Grogan PowerPoint presentation at the National Association of Telecommunications Officers and Advisors (NATAO) 2014 Annual Conference on October 1, 2014
From centralised long-term planning to market-based access: Proposed change i...Amitava Nag
The present transmission planning process in India does not incorporate economic dispatch principle. Transmission Planning is proposed to be done on the basis of projected load of the States and anticipated generation scenario based on economic principles of merit order operation.
Brian T. Grogan PowerPoint presentation at the National Association of Telecommunications Officers and Advisors (NATAO) 2014 Annual Conference on October 1, 2014
Cellphone Tower Regulation: Maximizing Revenue While Protecting Local InterestsBest Best and Krieger LLP
Joseph Van Eaton and Gerry Lederer, partners in the BB&K Washington, D.C. office, recently conducted an educational program on regulatory and transactional concerns arising from the siting or collocation of a wireless tower. The presentation focused on the impact of new FCC rules limiting local authority to control modifications of existing wireless facilities on siting regulation and on negotiations for use of public property to place wireless facilities.
Mr. Md. Abul Kalam Azad
Secretary, Power Division, Ministry of Power, Energy and Mineral Resources, Government of the People's Republic of Bangladesh
at RPR 2012, 23-26 August, Goa, India
Power Grid's Inter-State transmission charges in IndiaAmitava Nag
CERC on June 16, 2010 notified the Regulations of sharing inter-state transmission charges as per Electricity Act 2003. The method described in the Regulations is known as point of connection (PoC) transmission charges which is nothing but sharing of transmission charges as per projected usage.
At the International Municipal Lawyers Association’s annual Spring Meeting in Washington, D.C., we presented “Telecommunications 2016: The Challenges Facing Local Government and its Counsel.”
Comments on draft cerc sharing of transmission charges and losses regulations...Amitava Nag
CERC's draft inter-State Transmission Charges and Losses Regulations proposes socialization of expenditure of national interest with creation of cross subsidy against present Tariff Policy. Proposal of sharing of YTC of HVDC elements by postage stamp method is truly illogical. It is understood from Para 13 of the Jha Committee Report that merely 22% of the total YTC is proposed to be shared by hybrid method which measures sensitivity of distance, direction and quantum of power flow. Rest of the YTC will be shared by postage stamp method allowing cross subsidy ignoring the fact that postage stamp method is suitable for small area only.
Cellphone Tower Regulation: Maximizing Revenue While Protecting Local InterestsBest Best and Krieger LLP
Joseph Van Eaton and Gerry Lederer, partners in the BB&K Washington, D.C. office, recently conducted an educational program on regulatory and transactional concerns arising from the siting or collocation of a wireless tower. The presentation focused on the impact of new FCC rules limiting local authority to control modifications of existing wireless facilities on siting regulation and on negotiations for use of public property to place wireless facilities.
Mr. Md. Abul Kalam Azad
Secretary, Power Division, Ministry of Power, Energy and Mineral Resources, Government of the People's Republic of Bangladesh
at RPR 2012, 23-26 August, Goa, India
Power Grid's Inter-State transmission charges in IndiaAmitava Nag
CERC on June 16, 2010 notified the Regulations of sharing inter-state transmission charges as per Electricity Act 2003. The method described in the Regulations is known as point of connection (PoC) transmission charges which is nothing but sharing of transmission charges as per projected usage.
At the International Municipal Lawyers Association’s annual Spring Meeting in Washington, D.C., we presented “Telecommunications 2016: The Challenges Facing Local Government and its Counsel.”
Comments on draft cerc sharing of transmission charges and losses regulations...Amitava Nag
CERC's draft inter-State Transmission Charges and Losses Regulations proposes socialization of expenditure of national interest with creation of cross subsidy against present Tariff Policy. Proposal of sharing of YTC of HVDC elements by postage stamp method is truly illogical. It is understood from Para 13 of the Jha Committee Report that merely 22% of the total YTC is proposed to be shared by hybrid method which measures sensitivity of distance, direction and quantum of power flow. Rest of the YTC will be shared by postage stamp method allowing cross subsidy ignoring the fact that postage stamp method is suitable for small area only.
The briefing at the following link explores the impact of the proposed changes to the renewable subsidy regime for solar facilities installed in England and Wales that are five (5) megawatts or larger in size ('Large-scale PV Plants') given the 13 May 2014 announcement from DECC ('URN 14D/114').
DECC have put forward that in their view the capacity threshold of gigawatts installed of Large-Scale PV Plants in England and Wales will be achieved by the solar development community (including funders, contractors and developers) by mid-2015 rather than by the earlier predicted threshold-achievement by mid-2017.
Given the predicted threshold-achievement by 2015, the portion of the Levy Control Framework budget for Large-Scale PV Plants accredited for ROCs will have to end in the UK Government's view in April 2015, rather than in April 2017, with the net result that contracts for difference ('CfDs') will have an earlier adoption date that coincides with the targeted curtailment of ROCs for PV Plants on 1.4.15 ('Cut-off-Date').
The non-progression of "grandfathering" of ROCs following the Cut-off-Date for plants already accredited for receipt of ROCs, and the likely impact of the key terms of the current form of CfD are explored in this article, together with brief discussion on the other proposals to tackle the early threshold-achievement that were considered by DECC and reported on in URN 14D/114.
Our team are ready to assist with preparation of responses to the Consultation due by 7.7.14.
The UK Government’s “Infrastructure Bill” – amended draft published on 14 October 2014. Key highlights: CO2-reduction, extraction-tax, piercing commercial veils in upstream petroleum, levies on CO2 storage/gas storage or unloading/exploiting UK petroleum, and deep petroleum/geothermal energy prospecting.
DECC decision on ROCs CfDs Grace Periods Grandfathering of ROCs and degression banding for FiTs - URN 14D 322 and URN 14D 372, as it relates to the solar PV industry in the UK (October 2014)
UKGov are bringing back CfDs - will global renewable energy come back (/stay) a little bit longer? Discussion on impact of the March UK Budget 2016 impact on energy projects (and energy storage) in the UK.
The REAL Role of the Project Manager in Agilebookatabletech
It's still an open discussion: what role does the Project Manager play in an Agile setup? I've attended many workshops that try to explain how the Project Manager can get involved. It doesn't help that whilst Scrum and other Agile flavours mention the Product Owner and ScrumMaster roles, they don't tend to mention us.
Similar to 5.6.14 UK Infrastructure Bill - potential impact on private sector businesses working on property development to renewable energy projects in the UK
Increasing SME participation in procurements
Angelica Hymers
Local authorities power on fracking to be limited?
Emma Braidwood
PCER, DPA and satisfaction surveys
Megan Larrinaga
FOI review: the increasing burden
Emma Graham
Putting a stop to public procurement boycotts
Tom Nanson
Potential employment law implications of a ‘Brexit’
Sarah Hooton
The Environment (Wales) Act 2016
Ben Standing
VIETNAM – THE NATIONAL ASSEMBLY INCORPORATED DUANE MORRIS’S RECOMMENDATIONS I...Dr. Oliver Massmann
VIETNAM – THE NATIONAL ASSEMBLY INCORPORATED DUANE MORRIS’S RECOMMENDATIONS INTO VIETNAM’S FIRST EVER LAW ON INVESTMENT IN THE FORM OF PUBLIC-PRIVATE PARTNERSHIP (PPP)
Rollits Planning Focus - General Election Special (April 2015)Pat Coyle
The upcoming General Election is set to be one of the most keenly contested political battles for some time. The political parties have now published their Manifestos to varying degrees of fanfare. Within this Newsletter we have sought to set out some of the main planning and development policies contained within each Manifesto.
This Report was prepared pursuant to a contract with Allegheny Science & Technology Corporation with funding from the U.S. Department of Energy (“DOE”), Office of Nuclear Energy, under Small Modular Reactor Report, MSA No. DOE0638-1022-11, Prime Contract No. DE-NE0000638.
This Report does not represent the views of DOE, and no official endorsement should be inferred. Additionally, this Report is not intended to provide legal advice, and readers are encouraged to consult with an attorney familiar with the applicable federal and state requirements prior to entering into any agreements for the purchase of power.
The authors of this Report are Seth Kirshenberg and Hilary Jackler at Kutak Rock LLP and Brian Oakley and Wil Goldenberg at Scully Capital Services, Inc. The authors gratefully acknowledge the assistance of federal government officials working to support the small modular reactor program and the development of nuclear power. DOE provided the resources for this Report and invaluable leadership, guidance, and input.
In particular, the authors appreciate the leadership, support, guidance, and input from Matt Bowen, Associate Deputy Assistant Secretary, Office of Nuclear Energy, and Tim Beville, Program Manager, Small Modular Reactors Program at DOE. Additionally, the authors appreciate the input and guidance from the Western Area Power Administration, the Utah Associated Municipal Power Systems, NuScale Power LLC, and the many other governmental entities and individuals that reviewed and provided input and technical guidance on the drafts of this Report.
https://www.energy.gov/sites/prod/files/2017/02/f34/Purchasing%20Power%20Produced%20by%20Small%20Modular%20Reactors%20-%20Federal%20Agency%20Options%20-%20Final%201-27-17.pdf
Legal Alert - Vietnam - First draft Decree on mechanisms and policies to enco...Dr. Oliver Massmann
Legal Alert - Vietnam - First draft Decree on mechanisms and policies to encourage the development of rooftop solar power systems for self-consumption purpose
City of London Law Society - Submittal to BEIS on Statutory Retention Deposit...Francis Ho
A supplemental submission from the City of London Law Society's Construction Law Committee sent to the Department for Business, Energy & Industrial Strategy (BEIS) on 3 December 2018 regarding potential proposals to introduce a statutory retention deposit scheme for construction contracts in the United Kingdom.
Applying for contracts for difference when the application window commences on 14 October. Details on Allocation Framework and draft allocation regulations from the UK Government and as published on DECC's website.
Презентация PwC Legal об основных изменениях в российском законодательстве в сфере недвижимости содержит обзор последних правок к Земельному кодексу РФ.
Vidhi submission to parliamentary committee on land acquisitionrahulabhatia
The submission made by the Vidhi Centre for Legal Policy to the parliamentary committee for the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement (Second Amendment Bill, 2015).
Similar to 5.6.14 UK Infrastructure Bill - potential impact on private sector businesses working on property development to renewable energy projects in the UK (20)
Our engineering, infrastructure projects and procurement offering, in the EMEA, APAC and Americas, where relevant with best-friend informal-alliance partner-firms:
This article explores the legislative proposals of the UK Government to help promote expansion of a UK shale gas and deep heat geothermal project pipeline in the United Kingdom, and includes discussion on the “rights”-pack that an energy developer operating in the UK might compile and then sell to exits.
This article explores the potential next steps for Developers if the changes under URD 14D/114 proposed to be made to the ROCs regime for UK solar parks above 5MW in size are passed by the UK Government.
There is discussion on what an applicant for a CfD may need, what mechanisms lie in the CfD process to attract debt financiers/equity investors, and what a Developer may do to gear up for the bidding process for CfD-allocation in October this year if legislative changes are implemented to bring forward the CfD for ROCs handover date to 1.4.15.
Car Accident Injury Do I Have a Case....Knowyourright
Every year, thousands of Minnesotans are injured in car accidents. These injuries can be severe – even life-changing. Under Minnesota law, you can pursue compensation through a personal injury lawsuit.
A "File Trademark" is a legal term referring to the registration of a unique symbol, logo, or name used to identify and distinguish products or services. This process provides legal protection, granting exclusive rights to the trademark owner, and helps prevent unauthorized use by competitors.
Visit Now: https://www.tumblr.com/trademark-quick/751620857551634432/ensure-legal-protection-file-your-trademark-with?source=share
In 2020, the Ministry of Home Affairs established a committee led by Prof. (Dr.) Ranbir Singh, former Vice Chancellor of National Law University (NLU), Delhi. This committee was tasked with reviewing the three codes of criminal law. The primary objective of the committee was to propose comprehensive reforms to the country’s criminal laws in a manner that is both principled and effective.
The committee’s focus was on ensuring the safety and security of individuals, communities, and the nation as a whole. Throughout its deliberations, the committee aimed to uphold constitutional values such as justice, dignity, and the intrinsic value of each individual. Their goal was to recommend amendments to the criminal laws that align with these values and priorities.
Subsequently, in February, the committee successfully submitted its recommendations regarding amendments to the criminal law. These recommendations are intended to serve as a foundation for enhancing the current legal framework, promoting safety and security, and upholding the constitutional principles of justice, dignity, and the inherent worth of every individual.
Synopsis On Annual General Meeting/Extra Ordinary General Meeting With Ordinary And Special Businesses And Ordinary And Special Resolutions with Companies (Postal Ballot) Regulations, 2018
Guide on the use of Artificial Intelligence-based tools by lawyers and law fi...Massimo Talia
This guide aims to provide information on how lawyers will be able to use the opportunities provided by AI tools and how such tools could help the business processes of small firms. Its objective is to provide lawyers with some background to understand what they can and cannot realistically expect from these products. This guide aims to give a reference point for small law practices in the EU
against which they can evaluate those classes of AI applications that are probably the most relevant for them.
Defending Weapons Offence Charges: Role of Mississauga Criminal Defence LawyersHarpreetSaini48
Discover how Mississauga criminal defence lawyers defend clients facing weapon offence charges with expert legal guidance and courtroom representation.
To know more visit: https://www.saini-law.com/
Lifting the Corporate Veil. Power Point Presentationseri bangash
"Lifting the Corporate Veil" is a legal concept that refers to the judicial act of disregarding the separate legal personality of a corporation or limited liability company (LLC). Normally, a corporation is considered a legal entity separate from its shareholders or members, meaning that the personal assets of shareholders or members are protected from the liabilities of the corporation. However, there are certain situations where courts may decide to "pierce" or "lift" the corporate veil, holding shareholders or members personally liable for the debts or actions of the corporation.
Here are some common scenarios in which courts might lift the corporate veil:
Fraud or Illegality: If shareholders or members use the corporate structure to perpetrate fraud, evade legal obligations, or engage in illegal activities, courts may disregard the corporate entity and hold those individuals personally liable.
Undercapitalization: If a corporation is formed with insufficient capital to conduct its intended business and meet its foreseeable liabilities, and this lack of capitalization results in harm to creditors or other parties, courts may lift the corporate veil to hold shareholders or members liable.
Failure to Observe Corporate Formalities: Corporations and LLCs are required to observe certain formalities, such as holding regular meetings, maintaining separate financial records, and avoiding commingling of personal and corporate assets. If these formalities are not observed and the corporate structure is used as a mere façade, courts may disregard the corporate entity.
Alter Ego: If there is such a unity of interest and ownership between the corporation and its shareholders or members that the separate personalities of the corporation and the individuals no longer exist, courts may treat the corporation as the alter ego of its owners and hold them personally liable.
Group Enterprises: In some cases, where multiple corporations are closely related or form part of a single economic unit, courts may pierce the corporate veil to achieve equity, particularly if one corporation's actions harm creditors or other stakeholders and the corporate structure is being used to shield culpable parties from liability.
Lifting the Corporate Veil. Power Point Presentation
5.6.14 UK Infrastructure Bill - potential impact on private sector businesses working on property development to renewable energy projects in the UK
1. 1 | P a g e
The UK Government’s “Infrastructure Bill”1 –
Discussion on potential impact of Bill on
businesses working on projects in the UK.
Includes commentary on: (i) “deemed discharge”
of planning conditions from LPAs; and, (ii)
Community electricity rights relating to 5+MW
renewable energy projects, both on- and off-
shore
General disclaimer: the following constitutes the written view of the author and in no way constitutes actual legal advice
or a legal opinion and so no reliance may be placed upon the content hereinafter contained by any reader of this document
in any way whatsoever. In the event that legal advice or opinion is sought, please contact the author of this opinion at
the contact details below. The view below is expressly confined to matters as they stand at 12 June 2014.
Why does the UK Government want to legislate in this arena?
The Infrastructure Bill2
aims to introduce lean organisational efficiency measures3
for Government and
its departments that will impact on the private sector companies working on UK infrastructure
projects, specifically in relation to:
1. highways,
2. non-native species and their control (through species control orders),
3. deemed discharge of planning conditions,
4. transfer of the responsibility for local land charges register control to Her Majesty’s
Land Registry,
5. transfer of land free from encumbrance to the Homes and Community Agency, and,
6. a form of community ownership scheme relating to 5+MW renewable energy projects.
The Bill had its first reading on the 5th
of June 2014 in the House of Lords, and the second reading and
debating stage of the Bill will take place on 18 June 2014 in the House of Lords. If the Bill receives
1
Or more fully: “ A Bill…To make provision for strategic highways companies and the funding of transport
services by land; to make provision for the control of invasive non-native species; to make provision about
nationally significant infrastructure projects; to make provision about town and country planning; to make
provision about the Homes and Communities Agency and Mayoral development corporations; to make
provision about the Greater London Authority so far as it exercises functions for the purposes of housing and
regeneration; to make provision about Her Majesty’s Land Registry and local land charges; to make provision
for giving members of communities the right to buy stakes in local renewable electricity generation facilities;
and for connected purposes” – at p.88/88 of the PDF of the Bill (see FN2 below).
2
http://www.publications.parliament.uk/pa/bills/lbill/2014-2015/0002/15002.pdf (the “Bill”)
3
https://www.gov.uk/government/publications/queens-speech-2014-what-it-means-for-you/queens-speech-
2014-what-it-means-for-you#infrastructure-bill
2. 2 | P a g e
Royal Assent, it could come into force early next year. It was thought that shale (oil &) gas through
fracking, along with geothermal energy schemes, would be included in the draft Bill, however, this
area, together with the mooted concept of an associated one off payment for the relevant freehold
owner suggested by the shale gas and oil industries for each unique lateral (horizontal) well that
extends by more than 200 metres laterally4
, rather than payment for direct access beneath residential
homes to the owner of the freehold title, is discussed in a public consultation paper URN 14D/0995
that was issued by the UK Department for Energy and Climate Change (“DECC”) on 23 May 2014, and
that consultation will end on 15 August 2014. It therefore unlikely in this writer’s view that the Bill
will now contain content on shale oil and gas, or geothermal energy projects in the UK, and so separate
legislation, if the consultation goes well, may arise in due course.
In summary, the Bill sets out the following:-
HIGHWAYS6
The draft legislation sets up “Strategic Highways Companies” (“SHC”) to govern a “Road investment
Strategy” as decreed by the Secretary of State for Transport7
, and the relevant Secretary of State can
fine/administer/control such SHCs during their lifetime. For the watchdog set up to oversee the
public’s view on public transport, called the Passenger’s Council, or publically, “Passenger Focus”8
,
specific drafting has been instilled in the Bill to provide functions for Passenger Focus to investigate
and report on if the SHC is achieving its mandate under a Road Investment Scheme. The Office of Rail
Regulation9
also has a power to monitor in the draft Bill. Additional transferable powers relating to
highways or planning held by the Secretary of State are also drafted into the Bill as being able to be
transferred by statutory instrument to SHCs.
INVASIVE NON-NATIVE SPECIES10
The Bill sets out the creation of “species control agreements” (“SCA”) if a LPA “considers” (not, N.B.,
“reasonably believes according to substantive proof”), that non-native species reside on premises, and
the SCA is set up with the owner of premises to set up the method of carrying out the species control
operation. The Bill sets out powers of entry under warrant to ascertain whether a species control
agreement may be needed. For companies that have worked on projects with a crested newts study
for example, this form of power could delay obtaining a planning pack and/or the build-phase of a
project if an opposer to a prospective project reported the potential for the presence of an
animal/plant not ordinarily resident in Great Britain may infest a building or part of any premises,
dwelling or not.
PLANNING AND LAND11
The Bill incorporates a proposed amendment to the Planning Act 2008 to allow for a planning panel
to consist of only two people for deciding on nationally significant infrastructure projects. Deemed
discharge of a condition attaching to a conditional planning consent has also been drafted into the Bill
as a new section 74A of the Town and Country Planning Act 1990 and is to be welcomed as an effort
to allow the applicant to show evidence of discharge and if for some reason the LPA are behind
schedule and provision has been made in a development order for deemed discharge.
4
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/313576/Consultation_on_U
nderground_Drilling_Access__final_web_version.pdf - see at p.27.
5
As above at FN4.
6
Sections 1-15 of the Bill: at pp.1-9 of the Bill (see FN2 above).
7
The proposer of this Bill is Baroness Kramer, Minister of State for Transport
8
http://www.passengerfocus.org.uk/
9
http://orr.gov.uk/
10
Sections 16 of the Bill: at pp.10-19 of the Bill (see FN2 above).
11
Sections 17-20 of the Bill: at pp.19-20 of the Bill (see FN2 above).
3. 3 | P a g e
TRANSFERRING PUBLIC BUILDINGS TO HOMES & COMMUNITIES AGENCY WITHOUT
ENCUMBRANCE12
The Government in the Bill have made it easier for transfer of property, rights or liabilities relating to
property, to the Homes & Communities Agency under a preferential tax regime (new s.53B of the HCA
as inserted by section 21 of the Bill), to allow for tax liability to be waived in relation to such transfer.
The acquisition of land by the Homes and Community Agency, and land vested in or acquired by the
Agency, from a mayoral development corporation (MDC under the Housing and Regeneration Act
2008) is to be capable of taking place overriding any easements etc. (presumably any third party
rights).
TRANSFERRING RESPONSIBILITY FOR LOCAL LAND CHARGES TO HM LAND REGISTRY13
This is relatively self-explanatory and effects the transfer of the local land charges register records to
Her Majesty’s Land Registry (“HMLR”) further to Schedule 4 of the Bill. In addition, further power for
HMLR is enabled, including consultancy or advisory services about land or other property, information
services about land or other property, and services relating to documents or registers relating to land
or other property, in England and Wales.
COMMUNITY ELECTRICITY RIGHT14
The Bill has provisioning to allow regulations to be made to enable communities to buy a stake in a
renewable energy facility, at least 5+MW in size, onshore or offshore (the community residing closest
to e.g. an offshore wind farm), and the Bill allows for a right for the Secretary of State to issue
regulations on a right to buy a stake, how to own/transfer a stake, who can operate a community
owned facility, who can own the facility operating company, and who will in effect act a watchdog on
the community applications for a right to buy a stake in a qualifying renewable energy facility, and
how ownership in a qualifying facility is structured. Schedule 5 of the Bill, relating to “Community
Electricity Right Regulations”, are a draft set of regulations that expand a little more on the scope of
the main Bill provisions (section 26).
Only totally installed capacity generating 5+MW facilities can have a community “right to buy” power
invoked, by qualifying community members, identified according to how old they are, how long the
member has been a part of the community in which the qualifying facility is located, and whether the
community is one that is the sole community in which the individual resides. The Bill, in Schedule 5,
envisages more prescriptive regulations in due course, legislating upon the kind of renewable energy
used, the types of technology to be used, the generation capacity, such as whether the facility is
onshore or offshore. The Bill provides too that expanded facilities that become 5+MW in terms of the
total capacity power capable of being generated from the facility, can, as soon as they pass the
threshold, be subject to community ownership rights. “Excepted Facilities” or those facilities that are
not qualifying facilities, albeit they satisfy the criteria for a qualifying facility, may be an aspect of the
new regulations on this community right.
If the developer of a facility is not also to be the operation and maintenance company then this
“Promoter” (as defined in the BIll15
) will have to be identified and presumably will have to pass
certain tests to be a “qualifying” Promoter, although the Bill is silent on this point as yet.
The kinds of stake that a community member could have in a qualifying facility may range from shares
in the company that owns the facility to owning an interest in a body such as an LLP that owns the
facility, to an equitable interest or beneficial right, to royalties from revenue streams, or a loan16
.
12
Sections 21-22 of the Bill: pp.22-24 of the Bill (see FN2 above).
13
Ss.23-25 of the Bill: p.25 of the Bill (see FN2 above).
14
S.26 of the Bill: p.26 of the Bill (see FN2 above).
15
Schedule 5, para. 4, p.76 of the Bill (see FN2 above).
16
Schedule 5, para.7(2), p.78 of the Bill (see FN2 above).
4. 4 | P a g e
These last two items are likely to affect the way that an investor views a 5+MW facility in the UK if the
revenue streams are to be shared with members of the local community, or, the facility is to be
encumbered to the extent of a charge held over it, other than that of the investor who lent to the
owner of the facility to finance its development and construction, however, a qualifying offer is likely
to represent a combined price of a set of stakes that is equal to or greater than no more than 5% of
the total capital cost to develop the qualifying facility, which may limit the number of community
members exercising a right to buy. The Bill also allows for possible prescription in future regulations
for the situation where the number of applications given the number of stakes for a qualifying facility
is too high or too low, and, how to dispose of a stake and to whom, and in what limited circumstances
a disposal might take place, e.g. the person is no longer a member of the community in which the
qualifying 5+MW facility, adjacent to it offshore, or onshore, is located.
Developers (Promoters under the Bill) are not the only renewable energy project lifecycle participants
that may be subject to future scrutiny in 5+MW community ownership qualifying facilities, as the Bill
also allows for scrutiny on the voting rights on shares in an operator/O&M company, and when shares
can be issued in relation to the O&M company, and the Bill even goes on to say limitations may be
imposed by the regulation on precisely who can own the O&M company, and which kind of O&M
company can be the operator of a community-ownership qualifying facility.
It is likely that the renewable energy sector in the UK will want to fully scrutinise any prescriptive
regulations on community buy-in rights in due course. The level of scrutiny into the Developers
(Promoters) and Operators (O&M companies) is to be welcomed in that these parties, along with the
owners of the facilities, are placing assets in communities in the United Kingdom that may last well
beyond the Contract for Difference and PPA period of e.g. 15-25 years, and comfort in the “team” is
something that Sir Michael Latham wrote about, now some 20 years ago17
.
London, 13 June 2014.
To find out more on how My Business Counsel can assist you, please contact our
Infrastructure Projects Team today on info@mybusinesscounsel.com or by calling +44 (0)
203 507 0152.
17
“Constructing the team - "The Latham report": Final report of the government/industry review of
procurement and contractual arrangements in the UK construction industry”, 1994 (Department of the
Environment).