Source · Select Committees · Public Accounts Committee
Recommendation 10
10
Accepted
Sellafield Ltd consistently underperforms against strategic waste processing targets, impacting wider site cleanup plans.
Conclusion
Sellafield Ltd has–in conjunction with the NDA and the Office for Nuclear Regulation–set a ‘strategic tolerance’ for completing key activities. It described this to us as the date “we really want to hit”, to ensure that the site is fully cleaned up by 2125. We explored the consequences of not achieving ‘strategic tolerances’ with particular reference to the ‘Waste Vitrification Plant’ and were told that there is no fundamental engineering reason why the ‘strategic tolerance’ of 2039 could not be extended in this case. However doing so would need careful consideration as it could affect planning assumptions made elsewhere on the site (such as those relating to Sellafield’s future requirement for sample analysis capabilities).20 The NDA recognises that devising measures which allow measurement and reporting of progress in the short term, while also providing confidence that Sellafield Ltd will achieve long–term outcomes, is challenging.21 It also told us that Sellafield Ltd was right to be “super–cautious” because of the extremely hazardous nature of its waste – though it was conscious that “this may sound like a load of excuses”.22 We sought to understand how the NDA would identify underperformance – particularly in light of the Office for Nuclear Regulation’s request that the NDA do more to hold Sellafield Ltd to account for delivery, safety and security.23 We note that Sellafield Ltd has not only missed most of its targets for retrieving and ‘vitrifying’ waste in recent years, it has generally fallen well short of the level of performance it deems ‘Acceptable’.24
Government Response Summary
The government agrees, stating the NDA will develop a consistent planning approach for all operating companies, delivering revised whole-life, corporate, and operating plans by March 2027. Additionally, DESNZ will commission an independent review of the NDA Group by end-2025 to assess strategic planning, project delivery, and financial management.
Government Response
Accepted
HM Government
Accepted
2.1 The government agrees with the Committee’s recommendation. Target implementation date: March 2027 2.2 Currently there are mission-length plans spanning 100+ years for each Operating Company (OpCo) within the NDA group. These reflect the best estimate of key activities that need to be completed and/or new capabilities that need to be constructed to deliver the mission. The costs of delivering the plans are used to construct the nuclear provision. The approach to the construction of the plans varies significantly as they were initially developed by the previous Parent Body Organisations operating the sites. 2.3 NDA will develop, under its annual target on Group Strategic Planning, a consistent planning approach for short, medium and long-term planning horizons, to unify the plans across the estate, enabling stronger integration between the OpCos and strengthening the Group planning capability. It will deliver revised whole-life plans, 20-year corporate plans, and 5-year operating plans for each OpCo. 2.4 The NDA will define the outcomes to be delivered and the associated medium-term milestones/targets to enable continual monitoring of delivery performance at OpCo and group levels and inform management actions to maintain plan delivery within strategic tolerances. In addition, the NDA will set out what actions will be needed, including clear milestones, to achieve a completely decommissioned site. 2.5 Once the medium-term targets and long-term actions have been determined and agreed they will be reported on annually through the Sellafield Ltd Executive and Board and the NDA. Work is required to establish how and then when this information would be made public, considering existing NDA public reporting mechanisms, such as the NDA Annual Report and Accounts, Strategy and Business Plan. 2.6 In addition, DESNZ will commission by end-2025 an independent and externally led review of the NDA Group. This review will consider strategic planning and management to optimise Value for Money, project and programme delivery, financial management and the potential value of providing the NDA with longer-term financing and freedoms.