§ Lord Oakeshott of Seagrove Bayasked Her Majesty's Government:
How much money they expect British Energy to pay to Enron under the proposed standstill agreements described on page 6 of the announcement of restructuring proposals and extension of HMG loan facility which was made on 28 November and deposited in the Library of the House. [HL376]
§ Lord Sainsbury of TurvilleThis is a commercial matter for British Energy.
§ Lord Oakeshott of Seagrove Bayasked Her Majesty's Government:
What are the terms and the duration of the amount of the out of the money power purchase agreements and contracts for differences between British Energy and Enron noted on page 6 of the announcement of restructuring proposals and extension of HMG loan facility which was made on 28 November. [HL377]
§ Lord Sainsbury of TurvilleThis is a commercial matter for British Energy.
§ Lord Oakeshott of Seagrove Bayasked Her Majesty's Government:
Why the British taxpayer is underwriting an agreement which will enable payments to be made to Enron. [HL378]
§ Lord Sainsbury of TurvilleThe Government's overriding priorities remain to ensure the safety of nuclear generation and security of electricity supplies. The credit facility that the Government have made available to British Energy is to enable it to operate its stations safely, to continue trading and to meet its commercial obligations.
§ Lord Oakeshott of Seagrove Bayasked Her Majesty's Government:
Following their estimate of an annual cost of £150–£200 million for the next 10 years, what is their estimate of the annual cost to the Government from 2012 to 2086 of its significant contribution to British Energy's historic fuel liabilities managed by BNFL. [HL379]
§ Lord Sainsbury of TurvilleIf the proposed restructuring announced by British Energy on 28 November is successful and the company performs well, its contribution to the new liabilities fund will grow. The annual costs to government after 2012 will depend on the money in the fund. The Government will meet any shortfall to ensure nuclear safety and environmental protection. We will also be looking at how the contracts for historic spent fuel services with BNFL are managed as a part of the creation of the LMA.
33WA
§ Lord Oakeshott of Seagrove Bayasked Her Majesty's Government:
Further to the statement by Lord McIntosh of Haringey on 28 November (HL Deb col 916), what is the limit of the commitment by the Government to underwrite the proposed solvent restructuring of British Energy, expressed both in an amount and in time. [HL380]
§ Lord Sainsbury of TurvilleBritish Energy will meet its future spent fuel liabilities on an ongoing basis. It will also contribute to a new fund which will be used to pay for its nuclear liabilities, including decommissioning costs. British Energy's management accounts to 30 September 2002 show, on a discounted basis, an accrual of approximately £2.1 billion for historic spent fuel liabilities extending to 2086 and provision of £0.7 billion for uncontracted liabilities and £0.6 billion (net of the current nuclear decommissioning fund) for costs of decommissioning. The Government will take on financial responsibility for BE's historic spent fuel liabilities and underwrite the funds if they are insufficient to meet costs when they occur.