Part 2: Revenue collection contracts Section 16: Designation of a revenue collection counterparty
This section allows the Secretary of State to designate a company registered in England and Wales or Scotland or a public authority, with the consent of that person, to act as the counterparty to revenue collection contracts. The revenue collection counterparty will enter into and manage revenue collection contracts with relevant licensee nuclear companies and will act as the interface between those companies and suppliers.
	Subsection (1) allows the Secretary of State by notice to designate an eligible person to be the counterparty for revenue collection contracts. Subsection (2) clarifies that a person designated under subsection (1) is referred to in this Part as the revenue collection counterparty.
	Subsection (3) allows the counterparty to be a company registered in England and Wales or Scotland or a public authority. Whilst it is expected that the counterparty will be owned by Government, any designated counterparty would be bound by the same duties under the legislation, regardless of whether it was a company owned by Government, a public authority, or a private company. Subsection (4) states that a person can only be designated with their consent. Subsection (5) gives the Secretary of State the power to designate more than one revenue collection counterparty. This can only take place if the Secretary of State considers that it is necessary for one of the reasons set out in subparagraphs (a) to (c), for example to ensure that liabilities under revenue collection contracts can continue to be met.
	Under subsection (6) the designation of a company as the revenue collection counterparty can be revoked by the Secretary of State. Designation will also cease if the revenue collection counterparty elects to withdraw its consent and gives 3 months notice to the Secretary of State of that withdrawal.
	Subsection (8) makes clear that the Secretary of State must publish the notice of the designation that took place under subsection (1) (or a revocation under subsection (6)(a)).
	Subsections (7), (9) and (10) deal with the continuity of revenue collection counterparties. If the designation of a revenue collection counterparty was to come to an end, the Secretary of State must designate another counterparty and, as soon as reasonably practicable, make a transfer scheme under section 26 of this Part, transferring all rights and liabilities under revenue collection contracts to that new counterparty. This is designed to ensure that there is always at least one revenue collection counterparty in operation, and that where a revenue collection counterparty ceases to be designated, the contracts are transferred to a new revenue collection counterparty. Subsection (10) also provides that revenue regulations may make provision about the length of time for which, and circumstances in which, a revenue collection counterparty can be treated as such, after its designation has ceased.