Part 1: Nuclear Energy Generation Projects: Regulated Asset Base Model Section 7: Licence modifications: relevant licensee nuclear companies
This section makes provision to allow the Secretary of State to modify a relevant licensee nuclear company’s generation licence in the period up to the completion of construction. This power can only be exercised in limited circumstances where the expected expenditure to complete construction is likely to exceed a cap under the licence.
	Subsection (1) allows for the Secretary of State to make modifications to the conditions of a relevant licensee nuclear company’s generation licence.
	Subsection (2) specifies that the power under subsection (1) can only be exercised if the Secretary of State considers that it is likely that the company’s project will not be able to complete construction without the total expected expenditure exceeding a spending limit set out in its current licence; and that an adjustment to the calculation of the nuclear company’s allowed revenue is therefore necessary.
	Subsection (3) requires the Secretary of State to have regard to the same matters when exercising this power, as when making initial licence modifications under section 6(1).
	Subsection (4) limits this power to being used before the completion of construction. Subsection (5) defines this point as being when the nuclear plant has completed the relevant procedures and tests to demonstrate that it is ready to enter commercial operations.
	Subsection (6) obligates the Secretary of State to publish a statement that outlines the process they foresee following in relation to the exercise of the power included in subsection (1).