Part 1: Nuclear Energy Generation Projects: Regulated Asset Base Model Section 2: Designation of nuclear company
This section provides the power for the Secretary of State to designate a nuclear company to potentially benefit from the nuclear RAB model.
	Subsection (1) provides the power for the Secretary of State to designate a nuclear company in relation to a nuclear energy generation project in respect of which it holds an electricity generation licence ("the nuclear project") by providing the company with a designation notice. The principal effect of this is to trigger the Secretary of State’s power to modify the electricity generation licence of a designated nuclear company under section 6 to apply a nuclear RAB model. The designation power can only be exercised if certain criteria are satisfied and the designation notice may have certain conditions attached.
	Subsection (2) determines that a nuclear company may only be designated by the Secretary of State if it meets certain criteria.
	Subsection (3) sets out the criteria that must be met in relation to a nuclear company in order for the Secretary of State to be able to designate them. These conditions are:
that the Secretary of State is of the opinion that the development of the nuclear project is sufficiently advanced to justify the designation; and
that the Secretary of State is of the opinion that designating the company is likely to result in value for money.
						The statement published by the Secretary of State pursuant to section 3(1) will provide generic guidance for prospective nuclear companies by establishing a level of expectation regarding project maturity and value for money for different projects, including some of the factors the Secretary of State is likely to take into account when assessing the criteria in section 2(3).
	Subsection (4) clarifies that for this Part of the legislation a designation notice refers to a notice issued pursuant to the Secretary of State’s power under subsection (1).