Conventional asset meaning

Power purchase agreements (PPAs), and the consequent checklist considerations, will differ according to several elements, such as the generation technology adopted and, notably, whether any feedstock or fuel is necessary to run the finished plant. The nature of the deal—be it a short-term trading arrangement or a longer-term contract required to support financing—will likewise be influential. This Checklist proceeds on the basis of a ‘conventional’ PPA with a licensed supplier as the counterparty. Other forms exist, including corporate PPAs where the buyer is an end user, potentially linked to the plant by a private wire. For additional detail on corporate PPAs, see Practice Note: Corporate Power Purchase Agreements—an introduction to structuring power purchase arrangements between large energy users and remotely located generators. What is/check the duration of the agreement? Where a PPA is needed to underpin external financing for a new generating asset, the PPA term should, as far as practicable, ideally align with the tenor of any loans advanced to fund the scheme and the associated project...

In this issue Key developments and materials Electricity and gas market regulation and licensing Networks and network connections Renewable energy Conventional power, waste to energy, biomass, and CHP projects Nuclear energy International energy LexTalk®Energy: a Lexis®Nexis community Daily and weekly news alerts New and updated content Dates for your diary Trackers Key developments and materials National Grid has unveiled a strategic tie-up between its Distribution System Operator (DSO) and Electron to boost the scale and value of flexibility for system operators and flexibility service providers (FSPs) by enabling market interoperability. Electron will link its flexibility market platform, ElectronConnect, with the DSO’s Market Gateway, giving FSPs wider choice in how they access and engage with flexibility on the electricity distribution network. The collaboration also aims to reduce entry hurdles and drive broader market participation. See: LNB News 02/05/2024 7. Electricity and gas market regulation and licensing Ofgem has opened a consultation...

In this issue: Pension Schemes Bill Pensions Regulator powers Pension Protection Fund National Insurance Contributions (Employer Pensions Contributions) Bill Funding and investment Local Government Pension Scheme Data Protection Daily and weekly news alerts Dates for your diary Trackers Pension Schemes Bill Grand Committee Stage completed and revised Bill unveiled for multi-day Report Stage beginning on 16 March 2026 On 23 February 2026, the House of Lords Grand Committee (Grand Committee) met for its eighth and concluding session on the Pension Schemes Bill, after which the Bill—amended—was reissued. With Grand Committee business now finished, the Bill advances to Report Stage for consideration on 16, 19 and 23 March 2026. In the closing sitting, peers examined a series of fresh, non-government amendments covering: the line between pensions guidance and advice; fossil fuels and climate-related financial risk; fiduciary duty and systemic risk; alleged injustices in occupational pensions, including AEAT; and a proposed review of public service...

Bacci and others v Green [2022] EWCA Civ 1393, [2022] All ER (D) 75 (Oct) What are the practical implications of this case? This ruling highlights the adaptability of injunctive relief and the growing ingenuity of enforcement options open to creditors. The court may issue injunctions requiring debtors to authorise creditors to exercise personal or proprietary rights (without appointing receivers) so that assets are available for enforcement. Creditors who cannot meet debts through more conventional enforcement paths will welcome this. It approves a streamlined delegation of powers instead of the comparatively expensive and drawn-out process of appointing receivers by equitable execution. What was the background? The appellant, Mr Green, had borrowed funds from a lender. After failing to repay, the lender issued proceedings and obtained summary judgment for around £3m. A bankruptcy order was then made against him. As his liability arose from deceit and dishonesty, it was not released on discharge (see section 281(3) of the Insolvency Act 1986). Mr Green’s principal asset was his...

What are covered bonds? Covered bonds are asset-backed securities (ABS) with distinctive features: Issuer – they are brought to market by banks or other mortgage lenders Collateral – they are secured against a pool of mortgages or public sector indebtedness (the asset pool) Dynamic asset pool – the pool is maintained on a dynamic basis so that repaid or defaulted assets are replaced with new ones Dual recourse – bondholders have claims on both the issuer and the asset pool Statutory and regulatory regime – issuance takes place under a statutory and/or regulatory framework that ensures: the asset pool is segregated from the issuer’s other assets the pool is sufficient to cover repayment of the covered bonds bondholders enjoy a priority claim over the pool that is unaffected by the issuer’s default or insolvency UK-regulated covered bonds regime The UK legal and regulatory framework for covered...

Terminology In bai salam arrangements, the purchaser is known as the rabb-us-salam, the vendor as the muslam ilaih, the agreed price as the ra’s-ul-mal, and the underlying item as the muslam fih. Owing to the historic foundations of Shari'ah principles—and the jurisprudence informing bai salam—the language largely centres on commodities, particularly within agriculture. As contemporary Shari'ah structures have broadened to suit a wider range of situations, this Practice Note will therefore use ‘assets’ rather than ‘commodities’. It should be noted that not every asset is suitable for a bai salam arrangement (see the section on ‘Excluded assets’ below). The roots of bai salam reach back to the earliest Islamic era, created to assist farmers and agricultural labourers who needed funds to cultivate crops and deliver the harvest. Bai salam is also commonly termed bay salam, bai al-salam, bay al-salam, or simply salam. Impact of differing Shari'ah schools of thought and scholars: a number of Shari'ah-compliant transactions, particularly those that have been in operation for a significant amount of...

Shari’a-compliant financing arrangements Shari’a‑compliant financing arrangements, otherwise described as Islamic financing arrangements, can be structured in a number of ways. To cater for the direct tax analysis of Shari’a financing variants, the UK has put in place specific provisions known as the alternative finance arrangement rules. The purpose of these UK rules is to ensure that, for direct tax purposes, a qualifying Shari’a‑compliant financing is taxed in the same manner as an equivalent conventional financing arrangement. Achieving that parity depends upon the arrangements meeting the relevant statutory conditions prescribed for alternative finance arrangements in the applicable legislation. Currently, the regime extends to five distinct categories of financing arrangement. Importantly, the direct tax framework for alternative finance is not limited solely to Islamic financing; non‑Shari’a structures can, in principle, be brought within its scope as well. Among the five categories is the investment bond arrangement, commonly known as an alternative finance investment bond, or AFIB. This Practice Note deals with AFIB arrangements. Sukuk, which are a type of Shari’a financing...