Nuclear third party liabilities will be €1.2bn in 2018

Government will increase third party liabilities of nuclear operators in the event of a nuclear incident to €1.2 billion (£1 billion) from the current £140 million level.

The move will increase insurance premiums for nuclear operators.It follows a public consultation held last year on the UK’s proposals to implement changes made to an international treaty on nuclear third party liability – the Paris and Brussels Conventions.

The €1.2bn is €500 million more than the minimum required by the revised Conventions.

The department of energy and climate change said it expects the €1.2bn level will be phased in over five years, starting at €700 million when the new regime comes into force and increased annually by €100 million.

The changes will apply to existing nuclear operators in the UK as well as any potential new build operators. A spokesman said Decc anticipates that the new regime will come into force in 2013. That would mean by 2018, liabilities will hit the €1.2billion level.

A liability level of €70m will apply to low risk sites (this is an increase from the current £10m) as well as a level of €80m for low risk transport of nuclear substances.

“This is an important step in transferring the cost of nuclear third party liability from taxpayers to operators, particularly as we move forward with new nuclear,” said energy minister Charles Hendry.