Guidance

Scottish charging powers

Published 4 November 2026

Factsheet relating to the Energy Independence Bill.

Summary

This technical measure provides the legal underpinning for Scottish ministers to charge fees when they administer offshore renewable energy decommissioning programmes and the declaration of safety zones in Scottish waters. This ensures these statutory functions are delivered on a cost recovery basis rather than funded by taxpayers.

Why are we legislating?  

Functions relating to offshore renewable energy decommissioning and the declaration of safety zones were transferred to Scottish ministers through the Scotland Act 2016. However, the associated power to charge fees for carrying out these functions under the Energy Act 2004 was not transferred at the same time.

This measure was requested by the Scottish Government on the basis that the Scottish Government’s Marine Directorate that administers these functions operates on a cost recovery basis by charging fees to applicants. The cost of these applications is currently being funded by the Scottish Government, which ultimately is funded via taxation and borrowing. The principle of cost-recovery from applicants is well-established in England and Scotland and is in line with government advice on ‘managing public money’.

Primary legislation is required because the Scottish Parliament does not have legislative competence to amend the Energy Act 2004. The generation, transmission, distribution and supply of energy is a reserved matter. This measure provides a targeted legislative fix, restoring the original policy intent of devolution and ensuring alignment with equivalent charging powers already held by the Secretary of State elsewhere in Great Britain.

What are the government’s objectives with this measure?

At a strategic level, the measure supports the Energy Independence Bill’s objectives by enabling efficient, well resourced regulation of offshore renewable infrastructure, funded from applicants rather than general taxation. In this way it helps place support for clean power – and its safe dismantling – onto a more secure funding base.

At a sectoral level, the measure supports timely decision making on safety zones and decommissioning programmes, which are essential to the safe construction, operation and end of life management of offshore renewable installations.

How will this measure deliver these objectives?

The legislation gives Scottish ministers a clear regulation making power to set and charge fees for administering safety zone declarations and offshore renewable decommissioning functions under the Energy Act 2004. Fee levels will be determined through secondary legislation and must be linked to the costs of delivering the relevant functions.

Fees are expected to be charged at defined points in the regulatory process, such as when a safety zone application is submitted or when a draft decommissioning programme is reviewed. This restores a cost recovery model that reflects established practice and ensures public resources are used efficiently.

The measure does not introduce new regulatory requirements or change existing environmental or safety standards. Instead, it underpins their effective delivery by ensuring the responsible authority is properly resourced. The fees involved are expected to be small relative to total offshore project costs and will have no material impact on investment decisions or energy bills.

Over the longer term, the measure contributes to regulatory stability, investor confidence and the sustainable expansion of offshore renewables by ensuring that key consenting and decommissioning functions remain robust as deployment accelerates.