The Nuclear Liabilities Fund (NLF) is a fund of approximately £15 billion, set up to meet the long-term cost of cleaning and decommissioning the UK’s more modern nuclear power stations.
The fund helps to ensure the industry is able to meet its security and environmental responsibilities with regard to the waste management and decommissioning of nuclear power plants.
Having a secure, distinct fund for decommissioning aids the effort of protecting future generations from having to shoulder these costs.
In the UK, EDFE operates and supports eight nuclear power stations. These include seven advanced gas cooled reactor stations (AGRs) and one pressurised water reactor station (PWR). Decommissioning and clean-up activities are ongoing at each site and the level will increase as electricity ceases to be generated. This critical programme of work relies on continued funding from the NLF to ensure safety and cost-efficiencies for the future.
28 March 1996
The Nuclear Generation Decommissioning Fund receives an endowment from HM Government of £228m
British Energy restructured / the Contribution Agreement (CA) and the Nuclear Liabilities Funding Agreement (NLFA) both set up
Nuclear Generation Decommissioning Fund renamed the Nuclear Liabilities Fund
NLF converts 28% of its interest in British Energy into shares and sells them, raising £2.3bn
NLF sells remaining stake in British Energy to EDF for £4.4bn
NLF assets valued at £8.96bn
Duties and obligations
EDFE makes quarterly payments to the NLF for each of its AGR stations (linked to RPI).
Plus the payment of £150k per tonne of uranium loaded at British Energy’s PWR station, Sizewell B.
Payments of qualifying costs by the NLF to EDFE can only be made by application to the Nuclear Decommissioning Authority (NDA) within defined periods.
A Fund Review is initiated every ten years, with the next one due in 2025 unless requested earlier.
EDFE submits the following reports for review and approval by the NDA:
Lifetime Baseline Decommissioning Plan (BDP), 3-5 years prior to station closure
Strategy for discharging Uncontracted Liabilities (UCLDP)
Annual Liabilities Report (ALR2) for each financial period
Annual reconciliation of movements in liabilities over the preceding financial period (ALR1)