UK’S NDA Increases Cleanup Cost Estimate By GBP 10 Billion

For the 2006/2007 financial year the NDA estimated the cost at GBP 63 billion. For the 2007/2008 financial year that has now been raised to GBP 73.6 billion.

Releasing its annual report and accounts yesterday, the NDA said the increase could be explained by two factors. About 50 percent of the increase results from a combination of the decision in 2005 to focus on the higher hazards, together with updated assumptions for inflation rates in the construction sector. The remainder arises from revisions to the Magnox Operating Programme and consequently the need to operate Sellafield reprocessing facilities for longer, as well as having greater certainty around the costs for intermediate-level waste and contaminated land remediation.

The NDA said despite “income volatilities” and some unplanned expenditure it has delivered its planned programme of work. Income generated during the year was GBP 1.4 billion, an increase of GBP 252 million from last year. Poor plant performance at British Nuclear Group’s thermal oxide reprocessing plant (Thorp) and MOX (mixed oxide) fuel plant, both at Sellafield, was offset by realising income from waste substitution contracts.

NDA chairman Stephen Henwood said when the authority took ownership for the UK’s 19 designated sites, it was clear that much work needed to be done to understand better the lifetime programme and costs for each site. “After three years of investigation and analysis we now have a much improved understanding. Inevitably, this has resulted in increased costs,” he added.

The NDA’s annual report and accounts are available on the authority’s website (www.nda.gov.uk).

>>Related reports in the NucNet database (available to subscribers)

Costs Increase As Draft UK Clean-Up Strategy Calls For ‘Real Progress’ (News No. 131, 11 August 2005)

UK Committee Says Cleanup Costs Could Rise ‘Significantly’ (News No. 55, 10 July 2008)