Source · Select Committees · Public Accounts Committee
Recommendation 7
7
An informed understanding of the sites is important to develop reliable estimates of the potential...
Conclusion
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 they should be tackled. The NDA considers that reducing the time it will take to fully decommission some of the Magnox sites from around 85 years to something more like 40–45 years could reduce the long-term cost of decommissioning the sites.13 This is because around 40% of the cost to decommission a Magnox site is in maintaining, operating and safeguarding the sites while decommissioning activity is taking place. Accelerating decommissioning work could reduce these costs.14 A public consultation on the length of time it takes to decommission the sites will end in November, and when that is complete the NDA will consider its outcome and, in parallel, look at the impact on the 6 Qq 13, 15 7 Qq 3–4 8 HC Committee of Public Accounts, The Nuclear Decommissioning Authority’s Magnox contract, Session 2017–19, HC 461, 28 February 2018, summary para 3 9 C&AGs report 2020, para 5, 2.9 10 Q 3 11 Qq 3, 4, 55 12 Qq 3, 4, 6, 7, 13, 15 ,16 13 Qq 13, 33 14 Qq 15, 33 The Nuclear Decommissioning Authority’s management of the Magnox contract 11 spend profile.15
Government Response
Not Addressed
HM Government
Not Addressed
2. 1 The government agrees with the Committee’s recommendation. Target implementation date: Summer 2021 2.2 The NDA is charged with the mission to clean-up the UK’s earliest nuclear sites safely, securely and cost-effectively. 21 2.3 In April 2019, it launched One NDA. The One NDA approach to working is firmly based on maximising the opportunities that come from working more effectively and efficiently as a group of businesses. 2.4 The benefits it is striving to achieve from the One NDA approach are: • Increased value for money for the taxpayer • Enhanced performance and delivery of outcomes • Strong organisational health • Improved stakeholder confidence and trust • Improved culture for our people 2.5 The NDA seeks opportunities to reduce the time and cost of its decommissioning activities at all of its sites. It examines and revises its strategy on a regular basis to look at better ways of approaching its mission. The example given in 1.4 and 1.5 above in relation to the revised approach to decommissioning the Magnox sites provides an indication of its work to optimise its portfolio of work. 2.6 While the NDA expects the new site-specific decommissioning strategies to be defined over the next 12 to 18 months, they will be continuously reviewed and optimised using the learning obtained from the sites being decommissioned. 2.7 The NDA will report back to the Committee following publication of the new strategy. The NDA and Magnox Limited will subsequently update the lifetime plans for the Magnox sites. The NDA’s key document setting out dates for decommissioning is its Business Plan which is updated annually in the Spring. The edition of the Business Plan published in Spring 2021 will take account of the Committee’s recommendations and as set out in the answer to section 1.4 to 1.7, further data on indicative timing and expenditure will be published in the Business Plan for 2022 and will be confirmed in future spending reviews.