Twenty-Eighth Report - The Nuclear Decommissioning Authority’s management of the Magnox contract

Select Committee

Public Accounts Committee HC 653 27 November 2020

Report Status Government responded

Conclusions & Recommendations 18 items (8 recs)

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Government Response (AI assessment · 18 of 18 classified)

Accepted 7

Not Addressed 11

Government response

Treasury minutes: Government response to the Committee of Public Accounts on the Twenty eighth report from Session 2019-21 · published 25 Mar 2021

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Recommendations & Conclusions

7 results

2 Recommendation Accepted

The uncertainty affecting the Magnox sites reflects a wider uncertainty about the costs and timetable...

Recommendation

The uncertainty affecting the Magnox sites reflects a wider uncertainty about the costs and timetable of decommissioning the whole civil nuclear estate. According to the NDA’s most recent estimates it will cost the UK taxpayer £132 billion to decommission the … Read more The uncertainty affecting the Magnox sites reflects a wider uncertainty about the costs and timetable of decommissioning the whole civil nuclear estate. According to the NDA’s most recent estimates it will cost the UK taxpayer £132 billion to decommission the UK’s civil nuclear sites and the NDA estimates that the work will not be completed for another 120 years. The largest proportion of this cost is to clean up and decommission the NDA’s largest site at Sellafield, but the cost to decommission the NDA’s Magnox sites is also substantial, as is the liability associated with decommissioning the next family of nuclear power stations, known as the Advanced Gas-Cooled Reactors (AGRs). The money held in the Nuclear Liabilities Fund, which exists to fund the decommissioning of the AGRs specifically, was increased from £9.5 billion by an additional £5.07 billion this year to reflect the latest estimate of the work required. The NDA is consulting publicly about its strategy for cleaning up its nuclear sites. It may be possible to reduce the time it will take to fully decommission the sites of former nuclear power stations from around 85 years to more like 40–45 years. This could significantly reduce the long-term cost of decommissioning the sites as 40% of the overall decommissioning cost can be spent in maintaining, operating and safeguarding the sites while decommissioning activity is taking place. There is also an opportunity to save taxpayers’ money by accelerating the programme to create a deep storage facility, known as the Geological Disposal Facility, to store highly radioactive waste that is currently held 6 The Nuclear Decommissioning Authority’s management of the Magnox contract at interim facilities at Sellafield and the sites of former power stations elsewhere in the UK. The NDA and the Department are consulting the relevant regulators and interested communities to identify a suitable site for such a facility, but were not able to indicate a timeframe in which Show less

Government Response Summary

The government agrees to reduce decommissioning time, noting ongoing efforts and a summer 2021 target for strategy definition. It also commits to prioritising a geological disposal facility, stating a process is underway with an expected operational date by the 2040s, and is exploring near-surface disposal options.

HM Treasury

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3 Recommendation Accepted

A shortage of the right skills within the Nuclear Decommissioning Authority and across the nuclear...

Recommendation

A shortage of the right skills within the Nuclear Decommissioning Authority and across the nuclear industry remains a significant barrier to progress. In our 2018 report on the failure of the Magnox contract we were highly critical of the lack … Read more

Government Response Summary

The government agrees with the recommendation and sets a target implementation date of Summer 2021. It commits the Department and NDA to work with the Nuclear Skills Strategy Group (NSSG) to review and potentially update the existing Nuclear Skills Strategic Plan, to meet the demand for skills over the next 5-10 years.

HM Treasury

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5 Recommendation Accepted

The Nuclear Decommissioning Authority is not doing enough to exploit its various assets, either for...

Recommendation

The Nuclear Decommissioning Authority is not doing enough to exploit its various assets, either for the benefit of local communities or the UK economy as a whole. The UK was the first country to establish a civil nuclear power generation … Read more The Nuclear Decommissioning Authority is not doing enough to exploit its various assets, either for the benefit of local communities or the UK economy as a whole. The UK was the first country to establish a civil nuclear power generation industry and is still a world leader in nuclear decommissioning. It can point to some notable achievements in relation to the decommissioning of the Magnox sites alone, such as the successful defueling of all the Magnox reactors which has reduced the level of radioactivity on the sites by 95%, and the largest clean-up of asbestos waste to have been undertaken in Europe at Chapelcross. Furthermore, the NDA has provided advice and exported skills to other countries, including Japan in relation to the clean-up of Fukushima and the Ukraine in relation to Chernobyl. The NDA receives around £800 million a year in income from its commercial activities. Given the expertise and technologies which the NDA and the UK nuclear industry have developed over the years, there are further opportunities, in fields such as Artificial Intelligence and robotics, with export potential which could benefit the UK economy and provide jobs for people in local communities. The NDA also owns and occupies substantial amounts of land. It is encouraging to hear that around 50 acres of land at Harwell has been released and is currently home to a manufacturing centre for coronavirus vaccine. The NDA’s wider estate contains land which could be exploited for commercial and socially beneficial use and could provide much needed employment in nearby communities. Recommendation: The NDA should develop a strategy for maximising the economic benefits of developing and, where appropriate, exporting its knowledge and assets to alleviate the burden on the taxpayer. These include the skills and experience of the UK nuclear industry, the decommissioning technologies it has 8 The Nuclear Decommissioning Authority’s management of the Magnox contract developed, and the land and oth Show less

Government Response Summary

The government accepts the recommendation for the NDA to develop a strategy for maximizing economic benefits from its knowledge and assets, setting a Winter 2021 target and committing to annual reporting on progress.

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6 Recommendation Accepted

Public accountability is hindered by a lack of transparency about the scale and nature of...

Recommendation

Public accountability is hindered by a lack of transparency about the scale and nature of the challenge of decommissioning and the performance of the NDA. Nuclear decommissioning will cost current and future generations of taxpayers’ substantial sums of money and … Read more

Government Response Summary

The government agrees and commits to NDA making specific efforts in its Spring 2021 Business Plan to explain decommissioning work site-by-site with transparent dates and expenditure. Furthermore, the NDA will update its economic impact assessments during 2021 and report back to the committee.

HM Treasury

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7 Recommendation Accepted

An informed understanding of the sites is important to develop reliable estimates of the potential...

Recommendation

An informed understanding of the sites is important to develop reliable estimates of the potential costs and duration of decommissioning each site and to support decision- making about the most efficient ways to decommission them and the order in which … Read more

Government Response Summary

The government accepts the recommendation to reduce decommissioning time and cost, with a Summer 2021 target for new strategy definition. It outlines the NDA's ongoing efforts like the 'One NDA' approach and commits to future reporting in annual business plans.

HM Treasury

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8 Recommendation Accepted

There is also an opportunity to save taxpayers’ money by accelerating the programme to create...

Recommendation

There is also an opportunity to save taxpayers’ money by accelerating the programme to create a deep storage facility, known as the Geological Disposal Facility, to store highly radioactive waste that is currently held at interim facilities at Sellafield and … Read more

Government Response Summary

The government accepts the recommendation, stating that progressing the geological disposal facility is a priority, with a process underway and an expected operational date by the 2040s. It is also exploring near-surface disposal options for less hazardous waste.

HM Treasury

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9 Recommendation Accepted

While the cost of decommissioning represents a substantial liability for the UK taxpayer, the NDA...

Recommendation

While the cost of decommissioning represents a substantial liability for the UK taxpayer, the NDA was keen to point out that it also raises substantial income—around £800m a year—through commercial opportunities including the export of advice, skills and technologies to … Read more

Government Response Summary

The government accepts the recommendation to maximize economic benefits from NDA assets, setting a Winter 2021 target. It states NDA's forthcoming strategy will address international opportunities and collaboration, with progress to be reported annually.

HM Treasury

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