§ Norman BakerTo 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:
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£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.