Part 1: Nuclear Energy Generation Projects: Regulated Asset Base Model Section 3: Designation: procedure
This section sets out the procedure that the Secretary of State must follow to designate a nuclear company for the purposes of the nuclear RAB model.
	Subsection (1) requires the Secretary of State to publish a statement, setting out the procedure they expect to follow when considering whether to designate a nuclear company and how they will judge whether the criteria set out in section 2 subsection (3) have been met. The purpose of this is to provide transparency and build confidence in the decision-making process that the Secretary of State will take when designating a nuclear company. Whilst the Government does not anticipate that the Secretary of State will produce a new statement for every prospective project, they will keep its relevance and effectiveness under review and amend the statement where this is considered appropriate. By virtue of subsection (4), a statement may be published before or after the passage of the legislation.
	Subsection (2) requires the Secretary of State, prior to issuing a designation notice, to prepare draft reasons for the designation and consult with the persons listed in subsection (3), including on the draft reasons. A designation notice must include the publication of final reasons which incorporate any changes to the draft reasons that appear to the Secretary of State to be appropriate in view of the responses to the consultation.
	This provides opportunity for those directly affected by the potential designation, or have special expertise relevant to the decision, to provide their views on the matter.
	Subsection (4) states that this obligation could be met through a consultation before or after the passage of the legislation.
	Subsection (5) obliges the Secretary of State, when giving notice of the designation, to include a description of the nuclear project in relation to which the nuclear company is being designated; their final reasons for issuing the designation; any conditions that they are attaching to the designation as well as what will happen in the event that the conditions are not met; and the date of the notice.
	Subsection (6) requires the Secretary of State to publish a designation notice and to share the designation notice with the nuclear company being designated, as well as all persons consulted by virtue of subsection (2)(b).