26 Not Addressed

The long-term benefits of transferring the AGR stations into public ownership will depend on the...

Conclusion
The long-term benefits of transferring the AGR stations into public ownership will depend on the ability of Magnox Ltd to deliver efficiencies from combining the stations with its existing portfolio of nuclear stations. The NDA told us it expected to deliver savings once the stations begin to transfer. The addition of the AGR stations will increase the NDA’s portfolio. It told us this should allow for some economies of scale and that it expected this could achieve projected benefits in the hundreds of millions of pounds and potentially into the billions. The NDA told us that it had so far saved £100 million through the use of joint stores for Magnox and AGR stations co-located at Hinkley and Hunterston sites, and that further savings might be possible once it took ownership of the stations.43
Government Response Summary
The government refers to its response to recommendation 6 regarding the risk that transfer negotiations between EDFE and NDA could drag on and increase costs.
Government Response
Not Addressed
HM Government Not Addressed
The department agrees that arrangements for transferring nuclear stations to NDA are worryingly under-developed, and there is a risk that transfer negotiations between EDFE and NDA could drag on and increase the costs to the taxpayer. Please see response to recommendation 6.
Addressee Bodies
HM Treasury
Timeline
Recommendation age 4.0 yrs
Report published 20 May 2022