HC Deb 26 November 2002 vol 395 cc225-6W
Norman Baker

To ask the Secretary of State for Trade and Industry how much financial support has been given to(a) the nuclear generating sector,(b) the nuclear waste sector,(c) nuclear fusion and(d) other parts of the nuclear industry in each year since 1972. [80863]

Mr. Wilson

[holding answer 20 November 2002]Funding to the UK nuclear industry has been provided primarily in the form of grant and grant-in-aid to the United Kingdom Atomic Energy Authority. Over the period in question, the funding enabled UKAEA to undertake civil nuclear research programmes and to discharge liabilities arising from past programmes.

00A3; million
Grant and grant-in-aid
1971–72 43
1972–73 48
1973–74 61
1974–75 62
1975–76 87
1976–77 122
1977–78 118
1978–79 131
1979–80 144
1980–81 158
1981–82 164
1982–83 215
1983–84 204
1984–85 196
1985–86 169
1986–87 163
1987–88 148
1988–89 247
1989–90 196

Funding for UK nuclear fusion research was not shown separately from UKAEA funding prior to 1990:

£million
Grant and grant-in-aid Nuclear fusion Other nuclear
1990–91 94.3 26.9
1991–92 68.7 20.7
1992–93 1126.2 16.7
1993–94 1128.7 16.3
1994–95 1131.3 15.7
1995–962 199.3 15.9
1996–97 166.5 12.1
1997–98 174.5 16.6 8.5
£million
Grant and grant-in-aid Nuclear fusion Other nuclear
1998–99 285 12.6 5
1999–2000 194.4 14.4 3.3
2000–01 223.4 14.3 3.5
1 Grant payment.
2 Prior to 1995, UKAEA was a trading fund with a negative external financing requirement.

Note:

Grant-in-aid to the UKAEA includes provision for its running costs

Source:

Government Expenditure Plan Reports.

In the nuclear waste sector, costs of Nirex are met by subscriptions from its members (UKAEA, BNFL and British Energy).

Funding for the nuclear generating sector was provided under the NFFO (Non Fossil Fuels Obligation) and the Non Fossil Fuels Levy (NFFL).

£million
Premium income
1990–91 1,265
1991–92 798
1992–93 864
1993–94 895
1994–95 892
1995–96 699

At the time BNFL acquired Magnox Electric in 1998, Magnox Electric benefited from the NFFO and NFFL. Any sums received by Magnox Electric under the NFFO and NFFL were received as part of its trading revenues in the ordinary course of business. Magnox Electric applied these sums in the ordinary course of funding its business of the generation and wholesale supply of electricity, and the de-fuelling and decommissioning of closed Magnox nuclear generating stations.

The NFFL and NFFO also applied in Scotland and had implications for Scottish Nuclear. In 1996, following the flotation of British Energy, the premium payments from SP and SHE under the Nuclear Energy Agreement were ended. The price controls were modified to remove the 'Nuclear Premium'. In 1996–97, the Nuclear Premium for Scotland was £50 million.

BNFL, as a commercial company, does not receive support from Government. However, the Secretary of State announced last November HMG's intention for a Liabilities Management Authority to be established to take responsibility for those BNFL and UKAEA civil nuclear liabilities and associated assets that are properly the responsibility of the State.

The Government are providing British Energy with a credit facility of up to £650 million in respect of the period up to 29 November, and has taken security for the loan over the company's assets. The facility has been provided in respect of the company's working capital requirements and cash collateral for trading in the UK and North America.