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<p>The terms on which the Government will take title to and liability for higher activity waste from a new nuclear power station for disposal in the planned geological disposal facility will be set out in a waste contract with the operator. The price that the Government will charge the operators for this service, the waste transfer price, will be determined in accordance with the Government's published Waste Transfer Pricing methodology.</p><p>The waste contract will, at the outset, set a cap on the level of the waste transfer price and the published methodology sets out how this cap will be determined. The cap will be set at a level that reflects the Government's current analysis of risk and uncertainty around waste disposal costs and gives a very high level of confidence that actual cost will not exceed the cap. The Government accepts that, in setting a cap, the residual risk that actual cost might exceed the cap is being borne by the Government. Therefore the Government will charge the operator an appropriate risk fee for this risk transfer.</p><p>The Government's methodology, which includes worked examples, can be found at:</p><p>https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/42629/3798-waste-transfer-pricing-methodology.pdf</p> |