The draft bill will set up a Nuclear Decommissioning Authority (NDA) by April 2005. This Authority will oversee the clean-up of power stations, fuel reprocessing and nuclear research and development facilities dating back to the 1950s. According to the Department of Trade and Industry, this work will cost "well over £1 billion a year for the next 10-15 years." Stephen Timms, the energy minister, said: "The task ahead cannot be underestimated. With costs ... estimated at £48 billion, it is essential that we establish a single, publicly accountable body to take strategic management control of the clean-up process." The NDA will take responsibility for financing the clean-up of all of BNFL's 10 Magnox stations and the Sellafield plant, paving the way for a potential privatisation. BNFL welcomes the move.
Once the NDA is operational, it will put site management responsibilities on a proper contractual basis, with appropriate performance targets and incentives. Contracts will initially be placed with BNFL and UKAEA but, over time, contracts could be placed with third parties following competitive tenders.
Safety case work is expected to be in demand. Nigel Smith, a manager with Serco Assurance, said that his company, a subsidiary of the Serco Group, has about 500 workers, and there are around "ten to a dozen" firms of roughly the same size that will be competing for the upcoming safety analysis work.
The NDA will also assume the liabilities of UKAEA, and could be used to help rehabilitate British Energy.
The UK government has confirmed that it will not proceed with its planned part-privatisation of state-owned BNFL.
Trade and industry secretary Patricia Hewitt announced the decision in a written statement to parliament submitted on 3 July, the same day that BNFL announced the appointment of Michael Parker as the company's new chief executive.
Hewitt said: "There have been significant developments in BNFL's key businesses, the nuclear industry and in the government's efforts to encourage a competitive clean-up market in the UK since 2001. On this basis, the government has decided that a partial privatisation of BNFL after the UK's Nuclear Decommissioning Authority has been formed should no longer be an option." She said that a joint review of BNFL's future strategy, to be conducted by the BNFL board and the government, would "evaluate options for alternative strategies". The review team has been asked to report this autumn.
Linkedin
