# The Morecambe Offshore Windfarm Generation Assets Order 2025, Article 18: Guarantees in respect of payment of compensation

Extent: E+W+S

(1) The undertaker must not commence development unless it has put in place either—
(a) a guarantee and the amount of that guarantee approved by the Secretary of State in respect of the liabilities of the undertaker to pay compensation pursuant to the provisions of schedule 3 (protective provisions) part 3 and part 4; or
(b) an alternative form of security and the amount of that security for that purpose approved by the Secretary of State in respect of the liabilities of the undertaker to pay compensation pursuant to the provisions of schedule 3 (protective provisions), part 3 and part 4.
(2) A guarantee or alternative form of security given in respect of any liability of the undertaker to pay compensation pursuant to the provisions referred to in paragraph (1) is to be treated as enforceable against the guarantor or person providing the alternative form of security by any person to whom such compensation is payable and must be in such a form as to be capable of enforcement by such a person.
(3) Nothing in this article requires a guarantee or alternative form of security to be in place after the Secretary of State, having consulted with the licensee, has confirmed in writing that the Calder Field Facilities and the CPC have been decommissioned.
(4) Nothing in this article requires a guarantee or alternative form of security to be put in place by the undertaker where—
(a) the undertaker provides the Secretary of State with financial information sufficient to demonstrate that it has appropriate funding in place without a guarantee or alternative form of security to meet any liability to pay compensation under this Order in respect of the exercise of the relevant powers in paragraph (1); and
(b) The Secretary of State provides confirmation that no such guarantee is required.

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Source: https://www.legislation.gov.uk/uksi/2025/1366/article/18 (the official version)
Page: https://openlegislation.uk/morecambe-offshore-windfarm-generation-assets-order-2025/article-18
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.