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 08 August 2007
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Nuclear Decommissioning Funding Account (NDFA)

The Nuclear Decommissioning Authority (NDA) was set up by virtue of the Energy Act 2004, and assumed responsibility for the decommissioning and clean up of the UK's civil nuclear legacy on 1 April 2005. It now has responsibility for nuclear sites previously operated by UKAEA and BNFL. Its remit is to provide national strategic control and direction to deliver accelerated clean up at its sites whilst maintaining high standards of safety.

The key changes flowing from the creation of the NDA and to the previous nuclear clean up regime are:

  • the NDA are owners of the plant and facilities of BNFL (the Magnox nuclear power stations, Sellafield, the THORP/SNP plant, and Springfields plant); and took responsibility for managing clean up at the UKAEA's sites
  • BNFL and UKAEA have been restructured so that they now operate their facilities, both for clean up and continuing commercial operations, under contract to the NDA rather than as principals
  • the NDA has responsibility for expenditure of about £2.2 bn per annum.  Half of this comes from UK Government funding and half from commercial income from the continued operation of Magnox nuclear power stations and reprocessing at Sellafield

The Nuclear Decommissioning Funding Account (NDFA) is specified in the Energy Act 2004 (section 31 and 32). Its purpose is to ensure transparency as regards the funding (grant in aid) provided to the NDA by BERR in respect of the NDA's nuclear decommissioning and clean up work. The NDA has agreed to supply such information as is necessary to enable BERR to prepare the NDFA.

The NDFA will be on a cash basis. Grant in aid to the NDA will be shown as a debit. Items such as commercial income, interest, and other sums received by the NDA will also be shown as credits for the purposes of the NDFA. Any income (other than grant in aid) that forms part of the NDA's total net budget will be appropriated in aid by BERR who will seek the required Parliamentary approval for these receipts to be re-cycled and form part of the NDA's gross budget.

The Energy Act 2004 requires the NDFA to be audited by the National Audit Office (NAO) on behalf of the Comptroller and Auditor General.

Information on the NDA and its wide range of activities can be found on its website (see 'External Links').

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