EDF reaches agreement over decommissioning nuclear plants

EDF has agreed new arrangements with the government for the decommissioning of seven advanced gas cooled (AGRs) nuclear power stations.

The deal means that EDF will aim to shorten the time it takes to safely remove fuel from the power stations as they come offline, before transferring ownership over to the Nuclear Decommissioning Authority (NDA).

Under the newly agreed incentives, EDF could earn up to £100 million for outperformance in the decommissioning process but faces a penalty of up to £100 million for poor performance.

The UK’s AGR power stations have long been scheduled to reach the end of their working lives on a rolling basis by 2030, with EDF recently announcing that Dungeness B is already being moved the defueling stage.

The other AGRs are Torness and Hunterston B in Scotland, Hartlepool in Teesside, Heysham 1 and Heysham 2 in Lancashire and Hinkley Point B in Somerset.

Hinkley Point B and Hunterston B are both due to move to defueling next year with Heysham 1 and Hartelpool expected to go offline from 2024 and Torness and Heysham 2 – the newest of the AGRs – set to run until 2030.

The new agreement does not include pressurised water reactor Sizewell B or Hinkley Point C, which is currently under construction.

EDF chief executive Simone Rossi, said: “We are committed to delivering value to the taxpayer via the NLF (Nuclear Liabilities Fund) and the revised arrangements provide the certainty we need to plan and deliver safe and cost-effective defueling. The arrangements also provide our employees and supply chain partners important clarity over jobs for the coming years.

“We look forward to building on our collaborative partnership with the NDA to ensure successful defueling with Sellafield and a seamless transfer of the AGR stations to Magnox.”

Minister of State for Energy, Anne Marie Trevelyan, said: “Today’s deal marks an important milestone in managing the legacy of our older nuclear power stations, ensuring these stations are decommissioned safely and efficiently. By using the unique expertise of both EDF and the Nuclear Decommissioning Authority, we will ensure costs are reduced, saving the taxpayer an estimated £1 billion.

“It forms part of our wider commitment to the future of nuclear energy, including looking to reach a final investment decision on at least one nuclear power station by the end of this Parliament, alongside harnessing new and exciting advanced nuclear technology.”

Gary Carter, GMB National Officer, said: “The fact that these sites will remain with EDF during defueling is welcomed.

“GMB – along with other unions – has signed a significant and ground-breaking defueling agreement with EDF.

“Today’s announcement will give employees certainty and GMB will work hard with EDF to make sure workers are retained, retrained and well paid, skilled jobs continue during defueling and beyond.”