Part 1: Nuclear Energy Generation Projects: Regulated Asset Base Model Section 5: Revocation or lapse of designation
This section sets out the circumstances in which a nuclear company’s designation could lapse, or the Secretary of State could revoke its designation.
	Subsection (1) allows for the Secretary of State to revoke a nuclear company’s designation either where it no longer has a generation licence with respect to the nuclear project in relation to which it was designated, or either of the criteria set out in section 2(3) is no longer met.
	Subsection (2) provides that the Secretary of State must follow, with modifications where required, the same process as was followed during the designation of the nuclear company. This requires the Secretary of State to prepare draft reasons for revocation, consult named persons (including on the draft reasons) and to publish the revocation notice.
	Subsection (3) provides that the nuclear company’s designation may cease to have effect if the company does not comply with a particular condition attached to the designation. This is the case only if, when the Secretary of State issued the designation notice subject to a particular condition, it was made clear that non-compliance with that condition would result in the end of designation, and that the Secretary of State has given notice to the nuclear company that they have failed to comply with the condition. For example, a condition which may be included by the Secretary of State at the point of designation could be that the nuclear company must conduct a successful capital raise or that the project receives its Development Consent Order (DCO) by a certain date.
	Subsection (4) means that if a nuclear company loses its designation through failure to meet a condition of designation as under subsection (3), ceasing to hold an electricity generation licence under subsection (1)(a), or by no longer satisfying the designation criteria as under subsection (1)(b), then its designation will cease to have effect at the end of the day on which the Secretary of State sends it the relevant notice.
	Subsection (5) obliges the Secretary of State to publish any notice given under subsection (3).