UK / Watchdog Warns Of Risk To Taxpayer Over Rising Decommissioning Cost Estimates

Government recently requested further £5.6bn for liabilities fund
Watchdog Warns Of Risk To Taxpayer Over Rising Decommissioning Cost Estimates
The Dungeness nuclear power station in England, where two units were shut down permanently last year. Courtesy EDF Energy.
Cost estimates for decommissioning the UK’s aging nuclear reactor fleet have doubled in real terms since 2004 and if this upward trend is maintained there is a risk that the taxpayer will have to make further contributions, the UK’s National Audit Office has warned.

The government spending watchdog said in a report that the nuclear liabilities fund was established to meet the costs of decommissioning the country’s nuclear stations, but significant additional taxpayer support has been required with more likely to be necessary.

The government has provided a guarantee to underwrite the fund in the event that its assets are insufficient to meet the total costs of decommissioning. In 2020, government contributed £5.1bn to strengthen the fund’s position and the fund has recently requested a further £5.6bn.

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