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Consultation on fees for consents - Annex A

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Consultation Paper Annex A

Fees payable by applicants for consent under The Electricity (Applications for Consent) Scotland Regulations 1990

Consultation Document

Purpose

The purpose of this document is to seek views on firstly, whether the range of fees associated with applications for consent to build, operate or extend power stations under section 36 and 37 of the Electricity Act 1989 should be adjusted with a view to ensuring that they cover the associated costs of the application and secondly, that part of the fee is used to meet the costs of the planning authority. The Electricity Act 1989 specifies that the consent of Scottish Ministers is required for the construction, operation and extension of power stations with an installed capacity in excess of 50 Mega Watts (MW), or in the case of hydro and marine developments 1 MW and for most overhead power lines. Power station developments that fall below these thresholds are considered under the land use planning system.

Why adjust the fees?

The Electricity (Applications for Consent) Scotland Regulations 1990 established a range of fees to be paid by applicants under section 36 and 37 of the Electricity Act. These fees, once they are paid by the applicant to the Executive, are required to be paid into the Scottish Consolidated Fund. Some planning authorities have requested that fees for planning consents under these regulations should be regularly reassessed. As consent applications below the relevant Electricity Act thresholds are made directly to the planning authorities under the planning legislation, the costs incurred by them in processing such applications can be recovered from application fees. However, planning authorities receive no part of the fee for applications above the relevant thresholds and some have requested that they should be recompensed for the costs they incur in reviewing such applications. In addition, the current level of fees attracted by the Executive is very low compared with Local Authority fees and in relation to the Executive's costs. The Executive accepts this argument and considers that a scale of increased fees that also allows cost recovery for both the Executive and the planning authorities should greatly improve the efficiency of the process.

What we have considered

The Executive has considered the scale of fees, with a view to ensuring that they reasonably represent the cost to the Executive and the planning authorities associated with the processing of applications. In an attempt to encourage speedy consideration of applications, the amount reimbursed to the planning authorities would be reduced if the application is not processed within the specified timescale. The Executive has also considered whether arrangements enabling increased fee income instead of going to the Scottish Consolidated Fund, should be used to fund additional resources within the Executive to deal with processing applications for consent. The proposed revised scale of fees is detailed below and in the draft Electricity (Applications for Consent) (Scotland) (Amendment) Regulations 2005 in Annex A.

Existing and proposed arrangements

4. The table below sets out the existing fees payable under the 1990 regulations and the proposed range which will replace them. The proposed fee of £15,000 is commensurate with the new fees being proposed under the Town and Country Planning (Fees for Applications and Deemed Applications) (Scotland) Regulations 2004. Using this figure as a baseline, the fee totals have been increased to reflect the scale of the application and the resulting increase in Mega Watts/voltage.

Subject Matter of application for consent

Current fee under the Electricity (Applications for Consent) Regulations 1990

Proposed fee

Overhead line not an EIA Development (i.e. not requiring an environmental impact assessment)

£50

£150

Overhead line which is an EIA Development (i.e. requiring an environmental impact assessment) with a voltage not exceeding 132 kilovolts

£50

£2,000

Overhead line which is an EIA Development (i.e. requiring an environmental impact assessment)with a voltage exceeding 132 kilovolts but not exceeding 275 kilovolts

£50

£15,000

Overhead line which is an EIA Development (i.e. requiring an environmental impact assessment)with a voltage exceeding 275 kilovolts but not exceeding 405 kilovolts

£50

£25,000

Overhead line which is an EIA Development (i.e. requiring an environmental impact assessment) with a voltage exceeding 405 kilovolts

£50

£50,000

Construction or construction and operation of a generating station with a capacity not exceeding 100 megawatts

Nuclear station: £10,000

Non-nuclear station: £5,000

£15,000

Construction or construction and operation of a generating station with a capacity exceeding 100 megawatts but not exceeding 200 megawatts

Nuclear station: £10,000

Non-nuclear station: £5,000

£20,000

Construction or construction and operation of a generating station with a capacity exceeding 200 megawatts but not exceeding 500 megawatts

Nuclear station £24,000:

Non-nuclear station: £12,000

£30,000

Construction or construction and operation of a generating station with a capacity exceeding 500 megawatts

Nuclear station: £40,000

Non-nuclear station: £20,000

£50,000

Extension or extension and operation of a generating station resulting in increase in megawatt capacity not exceeding 100 megawatts

Nuclear station: £10,000

Non-nuclear station: £5,000

£15,000

Extension or extension and operation of a generating station resulting in increase in megawatt capacity exceeding 100 megawatts but not exceeding 199 megawatts

Nuclear station: £10,000

Non-nuclear station: £5,000

£20,000

Extension or extension and operation of a generating station resulting in increase in megawatt capacity exceeding 200 megawatts but not exceeding 500 megawatts

Nuclear station £24,000:

Non-nuclear station: £12,000

£30,000

Extension or extension and operation of a generating station resulting in increase in megawatt capacity exceeding 500 megawatts

Nuclear station: £40,000

Non-nuclear station: £20,000

£50,000

Extension of nuclear generating station by retrofitting of emission control equipment

£5,000

£5,000

Any other extension of generating station

£1,000

£1,000

Operation only or change to manner of operation of generating station

£1,000

£1,000

Proposed Re-imbursement Arrangements

5. The Executive proposes that all overhead line applications not requiring an Environmental Impact Assessment and all overhead line applications requiring an EIA with a voltage under 132 kilovolts, will have limited impact on local authorities and accordingly no re-imbursement is proposed. For all other categories, local authorities will be able to claim up to £5,000 or £10,000 towards their costs of processing an application on submitting an invoice to the Executive. Local authorities will be able to claim up to £10,000 of their costs if the application is processed within 4 months. Out with this period local authorities will only be able to claim up to £10,000 of their costs if the application is processed within 4 months. Out with this period local authorities will only be able to claim up to £5,000. All invoices will require to be submitted with an appropriately detailed breakdown of the costs incurred. The average cost to the Executive for each consent application is estimated to be £9,000 per application based on the applications received in 2003-04. This most includes the cost of other Executive participants e.g. solicitors and Planning. An Executive baseline fee of £5,000 reflects the estimated cost to the Executive for all applications over 132kilovolts but not exceeding 275 kilovolts. Thereafter the Executive's fee will increase in proportion to the increase in voltage and within the overall total proposed fee of £20,000.

Seeking Your Views

6. Scottish Ministers would welcome your comments and suggestions about the future of the current statutory arrangements for fees payable under section 36 and 37 of the Electricity Act 1989. Your views will help inform future policy making decisions. 7. A questionnaire is attached and is made up of three questions which are required to be answered. These questions are reproduced in Annex B should you wish to keep a record of your responses.

QUESTIONNAIRE

Fees payable by applicants for consent under The Electricity (Applications for Consent) Scotland Regulations 1990

Acknowledgements

All responses will be acknowledged either in writing or electronically. However, please note that in view of the size and nature of the consultation exercise, it will not be possible for the Panel to respond individually to comments received.

Deadline for Responses

The deadline for responses is 31 January 2005.

Q1. Do you agree that the revised scale of fees detailed in Annex A should be introduced?

Yes

No

Insert any comments on question 1 below.

Q2. Do you agree that arrangements should be introduced to compensate planning authorities for the costs they incur in processing Electricity Act consent cases?

Yes

No

Insert any comments on question 2 below.

Q3. Do you agree with the proposed re-imbursement arrangements?

Yes No

Insert any comments on question 3 below.

ANNEX A

Scottish Statutory Instruments

ELECTRICITY

The Electricity (Applications for Consent) Amendment (Scotland) Regulations 2005

Made - - - - 2005

Laid before the Scottish Parliament 2005

Coming into force - - 2005

The Scottish Ministers, in exercise of the powers conferred by sections 36(8) and 60(3) of, and paragraph 1(3) of Schedule 8 to the Electricity Act 1989( [1]), and of all other powers enabling them in that behalf, hereby make the following Regulations:

Citation, commencement and extent

1.-(1) These Regulations may be cited as the Electricity (Applications for Consent) Amendment (Scotland) Regulations 2004 and shall come into force on [ ] 2005.

(2) These Regulations shall extend to Scotland only.

Amendment of Regulations

2.-(1) The Electricity (Applications for Consent) Regulations 1990( [2]) shall be amended as follows.

(2) In regulation 3(1) after "these Regulations-" insert-

""EIA Development" has the same meaning as set out in regulation 2(1) of the Electricity Works (Environmental Impact Assessment) (Scotland) Regulations 2000( [3]);".

(3) In regulation 11(1) for the Table substitute:

TABLE

Subject matter of application for consent

Fee

1. Overhead line which is not an EIA Development

£150

2. Overhead line which is an EIA Development with a voltage-

(a) not exceeding 132 kilovolts

(b) exceeding 132 kilovolts but not exceeding 275 kilovolts

(c) exceeding 275 kilovolts but not exceeding 405 kilovolts

(d) exceeding 405 kilovolts

£2,000

£15,000

£25,000

£50,000

3. Construction or construction and operation of a generating station of megawatt capacity-

(a) not exceeding 100

(b) exceeding 100 but not exceeding 200

(c) exceeding 200 but not exceeding 500

(d) exceeding 500

£15,000

£20,000

£30,000

£50,000

4. Extension or extension and operation of a generating station resulting in increase in megawatt capacity -

(a) not exceeding 100

(b) exceeding 100 but not exceeding 200

(c) exceeding 200 but not exceeding 500

(d) exceeding 500

£15,000

£20,000

£30,000

£50,000

5. Extension of a nuclear generating station by retrofitting of emission control equipment

£5,000

6. Any other extension of a generating station

£1,000

7. Operation only or change to manner of operation of a generating station

£1,000

(4) In regulation 11(2) substitute "heads 3 to 7" with "heads 4 to 7".

Authorised to sign by the Scottish Ministers

St Andrew's House, Edinburgh

21 December 2005

EXPLANATORY NOTE

(This note is not part of the Order)

These Regulations, which come into force on [ ] 2005, amend the Electricity (Applications for Consent) Regulations 1990 ("the 1990 Regulations"). The 1990 Regulations apply in relation to applications for consent under section 36 of the Electricity Act 1989 ("the 1989 Act") to construct, extend, operate or change the manner of operation of a generating station, or under section 37 of the 1989 Act, to install or keep installed an electric line above ground.

Regulation 2 increases the application fees payable for consent applications in Scotland by substituting, in regulation 11 of the 1990 Regulations, tables of new fees. The amended fees and the previously applicable fees are set out in the following table:

Subject Matter of application for consent

Current fee under the Electricity (Applications for Consent) Regulations 1990

Proposed fee

Overhead line not an EIA Development (i.e. not requiring an environmental impact assessment)

£50

£150

Overhead line which is an EIA Development (i.e. requiring an environmental impact assessment) with a voltage not exceeding 132 kilovolts

£50

£2,000

Overhead line which is an EIA Development (i.e. requiring an environmental impact assessment)with a voltage exceeding 132 kilovolts but not exceeding 275 kilovolts

£50

£15,000

Overhead line which is an EIA Development (i.e. requiring an environmental impact assessment)with a voltage exceeding 275 kilovolts but not exceeding 405 kilovolts

£50

£25,000

Overhead line which is an EIA Development (i.e. requiring an environmental impact assessment) with a voltage exceeding 405 kilovolts

£50

£50,000

Construction or construction and operation of a generating station with a capacity not exceeding 100 megawatts

Nuclear station: £10,000

Non-nuclear station: £5,000

£15,000

Construction or construction and operation of a generating station with a capacity exceeding 100 megawatts but not exceeding 199 megawatts

Nuclear station: £10,000

Non-nuclear station: £5,000

£20,000

Construction or construction and operation of a generating station with a capacity exceeding 199 megawatts but not exceeding 500 megawatts

Nuclear station £24,000:

Non-nuclear station: £12,000

£30,000

Construction or construction and operation of a generating station with a capacity exceeding 500 megawatts

Nuclear station: £40,000

Non-nuclear station: £20,000

£50,000

**Extension or extension and operation of a generating station resulting in increase in megawatt capacity not exceeding 100 megawatts

Nuclear station: £10,000

Non-nuclear station: £5,000

£15,000

**Extension or extension and operation of a generating station resulting in increase in megawatt capacity exceeding 101 megawatts but not exceeding 199 megawatts

Nuclear station: £10,000

Non-nuclear station: £5,000

£20,000

**Extension or extension and operation of a generating station resulting in increase in megawatt capacity exceeding 199 megawatts but not exceeding 500 megawatts

Nuclear station £24,000:

Non-nuclear station: £12,000

£30,000

**Extension or extension and operation of a generating station resulting in increase in megawatt capacity exceeding 500 megawatts

Nuclear station: £40,000

Non-nuclear station: £20,000

£50,000

Extension of nuclear generating station by retrofitting of emission control equipment

£5,000

£5,000

Any other extension of generating station

£1,000

£1,000

Operation only or change to manner of operation of generating station

£1,000

£1,000

ANNEX B

QUESTIONNAIRE

Fees payable by applicants for consent under The Electricity (Applications for Consent) Scotland Regulations 1990

Acknowledgements

All responses will be acknowledged either in writing or electronically. However, please note that in view of the size and nature of the consultation exercise, it will not be possible for the Panel to respond individually to comments received.

Deadline for Responses

The deadline for responses is 31 January 2005.

Q1. Do you agree that the revised scale of fees detailed in Annex A should be introduced?

Yes No

Insert any comments on question 1 below.

Q2. Do you agree that arrangements should be introduced to compensate planning authorities for the costs they incur in processing Electricity Act consent cases?

Yes No

Insert any comments on question 2 below.

Q3. Do you agree with the proposed arrangements for the re-imbursement arrangements?

Yes No

Insert any comments on question 3 below.



( [1]) 1989 c.29. The functions of the Secretary of State were transferred to the Scottish Ministers by virtue of the Scotland Act 1998 (Transfer of Functions to the Scottish Ministers etc.) Order 1999 (S.I. 1999/1750), article 2 and Schedule 1.

( [2]) S.I. 1990/455.

( [3]) S.S.I. 2000/320.

Executive Summary

Chapter 1: Introduction

Chapter 2: Analysis of Responses

Chapter 3: Analysis of Questions

Chapter 4: Conclusion

Annex B: Distribution List

Page updated: Monday, April 11, 2005