DEPARTMENT OF ENERGY
AND CLIMATE CHANGE News Release (Reference: 2008/9) issued by COI
News Distribution Service. 3 November 2008
Government plans
to protect the taxpayer from the costs of cleaning up new nuclear
power stations took a step forward today with the appointment of a
watchdog to oversee the decommissioning and waste disposal funding arrangements.
Energy and Climate Change Minister Mike O'Brien announced
the appointment of Lady Balfour of Burleigh as the Chairman of the
new Nuclear Liabilities Financing Assurance Board (NLFAB).
As part of any application to build a new nuclear power station,
operators will have to submit plans for decommissioning and waste
management which will include arrangements for financing those
plans. The NLFAB will provide independent scrutiny and advice on
the financing arrangements of those plans which will have to be
approved by the Secretary of State.
Energy and climate change minster Mike O'Brien said:
"Nuclear energy is an affordable, low carbon, dependable and
safe technology that is important for our low carbon future. But
we've always said the taxpayer should be protected from the
costs of decommissioning and waste disposal arising from new
nuclear power stations. The NLFAB will be another piece of armour
to help ensure they get that protection.
"Lady Balfour's considerable skills and experience
within the nuclear industry will play an important part in leading
the Nuclear Liabilities Financing Assurance Board."
Lady Balfour said:
"The NLFAB will be providing independent scrutiny of the
financing arrangements that will last decades into the future.
The work of the NLFAB will require hard thinking and robust
negotiation. This will help ensure that energy companies pay for
the full costs of decommissioning and full share of costs
associated with nuclear waste management and disposal I look
forward to this challenge."
The Office for Nuclear Development also issued the first of three
discussion papers today. These papers will enable people to feed
in their views on the development of estimates of the costs of
decommissioning and waste management. These estimates will assist
NLFAB in its work by providing a benchmark against which
operators' own estimates can be assessed
Notes to Editors
1. The Nuclear Liabilities Financing Assurance Board (NLFAB) is
being set up to provide assurance that appropriate financial
arrangements will be put in place by the operators of any new
nuclear power stations in England, Wales or Northern Ireland to
meet the costs of decommissioning and waste management arising
from these stations. It is anticipated that the first meeting of
the Nuclear Liabilities Financing Assurance Board will take place
in January 2009.
2. This will involve scrutinising the Funded Decommissioning
Programme submitted by potential operators, and making
recommendations to Ministers on the suitability of the financial
arrangements within the programme.
3. Once approved, the Nuclear Liabilities Financing Assurance
Board will also provide advice to the Secretary of State on the
regular reviews and ongoing scrutiny of financial arrangements.
4. The policy objectives behind the formation of the Nuclear
Liabilities Financing Assurance Board were set out in the
'Consultation on Funded Decommissioning Programme Guidance
for New Nuclear Power Stations' which can be found on the
BERR website at http://www.berr.gov.uk/files/file44486.pdf.
5. This appointment has been made in accordance with the
requirements of the Office for the Commissioner for Public
Appointments. Lady Balfour declared no political activity but it
is noted that she is also Chair of the Nuclear Liabilities Fund.
6. The selection process for members of the Nuclear Liabilities
Financing Assurance Board is in progress. Interviews take place at
the end of November.
7. The Chair of the Nuclear Liabilities Financing Assurance Board
receives remuneration of £750 per diem. This is a three year
appointment starting from the 1 November 2008.
8. The discussion paper, Pre-consultation discussion paper No. 1:
on a methodology to determine how the fixed costs of building a
geological disposal facility should be apportioned to and shared
between operators of new nuclear power stations can be found at:
http://www.berr.gov.uk/files/file48571.pdf
9. Biographical details of Lady Balfour are below:
Lady Balfour is currently the Chair of the Nuclear Liabilities
Fund, Stagecoach plc's Safety and Environment Committee and
Murray International Trust plc's Remuneration Committee. She
is also a non-executive Director of the Scottish Oriental Smaller
Companies Trust and Close Enterprise VCT and brings a wealth of
experience in senior roles to the post. She taught politics and
modern history at Oxford University before moving to the Central
Policy Review staff in the Cabinet Office. She has worked for
governments in many countries and for a number of public bodies.