Source · Select Committees · Public Accounts Committee
Recommendation 22
22
There are still some important aspects of transfer that are yet to be agreed.
Conclusion
There are still some important aspects of transfer that are yet to be agreed. The NDA and EDFE recognise there are issues around transfer that will need to be agreed but believe they have sufficient time to sort out the remaining points.35 They established nine working groups in 2021 to negotiate what will be transferred. The NAO, however, found that some issues surrounding the transfer of AGR stations to the NDA and Magnox Ltd were likely to become pressing long before transfer. These included: clarity of what the transfer means for the workforce on AGR stations; building Magnox Ltd’s capacity to take on management of the stations; Magnox Ltd becoming the site licensee at each station; agreement on how contracts with suppliers to each station will be handled; and a lack of certainty about the exact land boundary and facilities that the NDA and Magnox Ltd will receive.36 The NDA told us the cooperation between it and EDFE was “excellent”. EDFE similarly noted that both had a common interest in ensuring a seamless transfer, but acknowledged that there was a lot of detail to work through.37
Government Response
Not Addressed
HM Government
Not Addressed
6: PAC conclusion: 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. 6: PAC recommendation: Within the next six months the Department, following discussions with NDA and EDFE, should write to the Committee with a detailed plan and timetable for how the transfers will take place. This plan should cover all the major aspects of the transfer including land and people, and it should identify where uncertainties remain, how those uncertainties might affect costs, and when they are likely to be resolved. 6.1 The government agrees with the Committee’s recommendation. Target implementation date: May 2023 6.2 EDF and NDA are currently working together to deliver detailed transfer plans for the AGR stations, starting with Hunterston B, with an anticipated delivery date of May 2023. Accordingly, the department would request a revised implementation date for this recommendation of May 2023. 6.3 A sufficiently detailed transfer plan for Hunterston B will be available in May 2023, but necessary work will need to take place to support detailed transfer plans for the subsequent stations, which will be completed in the years thereafter. The department proposes sharing the detailed Hunterston B plan with the Committee when completed, with a summary of progress of plans for the remaining stations at that time.