§ Malcolm BruceTo ask the Secretary of State for Trade and Industry what assessment she has made of the effect of the cost of nuclear decommissioning over the next 10 years on the price of electricity. [158535]
§ Mr. TimmsThe Department has not made such an assessment. Electricity prices, including those for electricity generated by BNFL and British Energy (BE), are determined by the market under NETA and reflect the underlying market situation, giving appropriate signals to enable market players to respond.
From April 2005, the Nuclear Decommissioning Authority (NDA) will take responsibility for the decommissioning and clean up of BNFL's nuclear sites and for the Magnox fleet of nuclear power stations, pending their decommissioning and eventual closure. The revenue accrued from Magnox generation will contribute towards the NDA's clean up costs.
Under BE's proposed restructuring plan, the Government will take financial responsibility for the company's historic spent fuel liabilities and will 1197W underwrite BE's new arrangements for funding decommissioning and uncontracted liabilities to the extent that BE's contributions are insufficient.