Source · National Audit Office
The decommissioning of the AGR nuclear power stations
Published: 28 Jan 2022
Recommendations: 6
Type: Value for Money
NAO confirmed: 6
Department: Department for Business, Energy & Industrial Strategy
This report examines whether government’s arrangements for decommissioning AGR nuclear power stations will lead to better value for money.
Recommendations
| Rec | Recommendation | Addressee | Acceptance | Implementation |
|---|---|---|---|---|
| 1 |
EDFE has developed key performance indicators and milestones against which it will report progress with decommissioning. The Department should also develop measures against which it can monitor broader aspects of the performance of the programme for decommissioning the AGR stations. Measures should include, for example the:
• adequacy of estimates to defuel and decommission the AGR stations and the implications for the likely demands upon the Fund;
• extent to which the actions of the various parties align in the interest of delivering safe and cost-effective decommissioning; and
• extent to which the savings envisaged in the business case are indeed being delivered.
Ref Page 12, paragraph 17, point a
|
Department for Energy Security and Net Zero | Accepted | Implemented ✓ NAO |
| 2 |
Given the impact that early closure of a station can have on the costs incurred by the Fund, the Department should, with EDFE, review the risks of
early closure at each of the AGR stations to ensure appropriate contingency planning is in place.
Ref Page 13, paragraph 17, point b
|
Department for Energy Security and Net Zero | Accepted | Implemented ✓ NAO |
| 3 |
The Department should ensure that the NDA and Magnox Ltd have a clear plan for delivering value for money in the period post-transfer, taking advantage
of any efficiencies to be realised from the combined AGR and Magnox fleets. The Department should agree performance metrics based on the plans and
hold NDA and Magnox Ltd to account for delivery.
Ref Page 13, paragraph 17, point c
· Implemented Q3 2026-27
|
Department for Energy Security and Net Zero | Accepted | In progress ✓ NAO |
| 4 |
The Department should consider what changes to the oversight and funding arrangements will be needed as the NDA begins to take responsibility for stations. For example, whether it will remain sensible for decommissioning of the AGR and Magnox stations to be funded via different mechanisms. At present, AGR decommissioning is funded from the Fund, and the decommissioning of Magnox Ltd’s stations is funded from the NDA’s grant from the Department.
Ref Page 13, paragraph 17, point d
|
Department for Energy Security and Net Zero | Accepted | Implemented ✓ NAO |
| 5 |
The Department, working with HM Treasury, should put in place appropriate arrangements to assure the taxpayer that it is discharging its oversight role effectively and that the decommissioning programme is performing well. It should consider, for example, in consultation with HM Treasury, whether the decommissioning programme should be added to the Government Major Projects Portfolio (GMPP), and thereby receive additional challenge and scrutiny within government. It should report publicly on the performance of the programme.
Ref Page 13, paragraph 17, point e
· Implemented Q3 2026-27
|
Department for Energy Security and Net Zero | Accepted | In progress ✓ NAO |
| 6 |
The Department and HM Treasury should draw upon the lessons from the AGR arrangements when informing strategies for funding the decommissioning of new nuclear stations. This should include consideration of how the taxpayer’s position can be protected for the longer term, bearing in mind that estimates of decommissioning liabilities have had a tendency to increase the closer they get to maturing.
Ref Page 13, paragraph 18, point f
|
Department for Energy Security and Net Zero | Accepted | Implemented ✓ NAO |