Nuclear decommissioning ‘costs rise’

NEW forecasts are expected to show an increase in the overall cost of dismantling the UK’s old nuclear power facilities.

According to the Observer newspaper the Nuclear Decommissioning Authority’s (NDA) annual report, published today, will show rising costs, up to £55bn from £53bn in 2011 and £49bn in 2010.

It says this figure would be much higher, at around £100bn, under a previously used accounting method.

The Observer said rising costs have caused tensions with the private contractors who manage the NDA’s Sellafield site in Cumbria.

The contract with Nuclear Management Partners (NMP) – a consortium made up of Amec, Areva of France, and US-based URS – was signed in 2010 for five years with an option to roll it over for up to 17 years at a total cost of more than £22bn.

The NDA is now in talks with NMP, with the possibility it could re-tender the contract to outside parties before its first break point in March 2014.