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Sellafield Ltd Annual Report and Financial Statements 2020/21

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Sellafield Ltd Annual Report and Financial Statements 2020/21 2020- 2021 Annual report and financial statements RESULTS FOR THE YEAR ENDED 31 MARCH 2021 2 Sellafield Ltd Annual Report and Financial Statements 2020/2021 Company information Contents Directors Company information 02 Mrs L I Baldry Strategic report 03 (Chair) (resigned 2 May 2021) Mr A J M Meggs Principal activities and future developments 03 (Chair) (appointed 2 May 2021) Review of business 03 Mr M J Chown Section 172 Statement 06 (Chief Executive Officer) Corporate governance 12 Mr J M Seddon (Finance Director) Covid-19 16 Mr A D Cumming Principal risks and uncertainties 18 (Shareholder Representative Director) Directors’ report 19 Mr N W R Smith (Non-Executive Director) Streamlined energy and carbon reporting 20 (resigned 15 March 2021) Directors’ responsibilities statement 23 Dr D Byrne Independent auditor’s report 24 (Non-Executive Director) Income statement 26 (resigned 31 December 2020) Mr J Baxter Statement of comprehensive income 27 (Non-Executive Director) Statement of financial position 28 Dr A F J Choho Statement of changes in equity 29 (Non-Executive Director) Notes to the financial statements 30 Mr D G Vineall (Shareholder Representative Director) Appendix: Streamlined energy and carbon Mrs C L Hall reporting methodology 52 (Non-Executive Director) Mr J P Simcock (Non-Executive Director) Secretary Mr A M Carr Auditors Mazars LLP One St Peter’s Square Manchester M2 3DE Bankers National Westminster Bank plc 3rd Floor 250 Bishopsgate London EC2M 4AA Registered office Hinton House Risley Warrington Cheshire WA3 6GR Cover image taken May 2021 adhering to COVID-19 measures Sellafield Ltd Annual Report and Financial Statements 2020/2021 3 Strategic report The directors present their Strategic In 2020/21, the Company continued to • Worked with more than 400 report for the year ended 31 March 2021. focus on creating a safe and clean employees to create Our Manifesto, environment for future generations. setting out the behaviours and This is at the forefront of the Company’s relationships vital to delivering our Principal activities and Strategy, and will be executed by safe, Enterprise Strategy. future developments secure and sustainable site stewardship, progress at pace, and creating lifetime Progress at pace These financial statements contain value for money. certain forward-looking statements with • Opened a new intermediate level waste export route from the Pile Fuel respect to the financial condition and The section on page 16 provides more Storage Pond to the Waste business of Sellafield Limited (the information on the impact of the Encapsulation Plant, a significant Company). Statements or forecasts Covid-19 pandemic on activities during step forward in the Company’s risk relating to events in the future 2020/21 and future developments. necessarily involve risk and uncertainty and hazard reduction programme. and are made by the Company in good Review of business • The removal of half of the solid faith based on the information available waste from the Pile Fuel Storage at the date of signing this report. During the year the Company incurred Pond, putting the programme on The Company undertakes no obligation operating costs of £2,070 million (2020: track to remove almost all to update these forward-looking £2,070 million). This expenditure is radioactive material by 2024. statements. Nothing in these financial recoverable from the NDA under the Services Agreement and represents the • In the Magnox Swarf Storage Silo, statements should be construed as a the second Silo Emptying Plant profit forecast nor should past operational costs of the Sellafield site including expenditure on: machine was installed and the first performances be relied upon as a guide Silo Emptying Plant machine was to future performance. • carrying out the environmental moved into position to start The principal role of the Company is to clean-up of the UK’s most complex retrievals. and hazardous nuclear site, Sellafield; operate nuclear sites under the site • The Company continued work on licence and a Services Agreement • decommissioning nuclear facilities; construction delivery, including between itself and the Nuclear recent tower crane installation on Decommissioning Authority (NDA) in a • receiving, reprocessing and storing Sellafield Retreatment Plant, safe, secure, efficient and cost-effective used nuclear fuel; concrete pours on SIXEP manner and in accordance with its • managing the UK’s special nuclear Contingency Plant and Sellafield Corporate Plan and Operating Plan. The Retreatment Plant. Company is responsible for safely materials; delivering the decommissioning and • delivering capital projects to support • Safely continued demolition of the clean-up of the UK’s nuclear legacy as the mission, and asset care and Windscale Pile 1 chimney. well as fuel recycling and the maintenance – some of the facilities management of low, high and at Sellafield are more than 70 years Safe, secure sustainable, site intermediate level waste activities on old so significant investment is stewardship behalf of the NDA, including the receipt required to ensure that they remain • The Company developed the and treatment of spent fuel, the storage operational and in a safe state prior to concept that fixed the Redundant of hazardous materials, the decommissioning; and Settling Tank leak next to First decommissioning and clean-up of Generation Magnox Storage Pond. installations, and the maintenance of • the safe treatment of low level, laboratory and other facilities. intermediate level and high level • Demolished the First Generation waste. Reprocessing Plant stack from 61m The Company operates under the to its final height of 30cm, removing Services Agreement between the Despite the impact of the Covid-19 a significant risk from the Sellafield Company and NDA, as a wholly owned pandemic on the Company’s operations, site. subsidiary of NDA. In accordance with during 2020/21 the Company has made the Energy Act 2004, NDA has tasked progress in respect of meeting the • Delivered the safe shutdown and the Company with carrying out activities targets and milestones set by the NDA, steady and safe ramp back up of the set out in the NDA Designation of making progress in all areas of its Company’s operations and major Sellafield. accountability, including high hazard projects, incorporating a new way of reduction, nuclear operations and safe working through the Enterprise Risk The Company’s primary site is the secure stewardship. Progress this year Assessment. Sellafield nuclear site in West Cumbria. includes: The Company also has an engineering, • The Company delivered its own test design and functional support capability • Created and published our Enterprise and trace capability for Sellafield at its Risley office, near Warrington, and Strategy 2020. Flowing from the Limited and its supply chain and then several offices in the West Cumbrian Company’s purpose of ‘creating a broadened its availability to community. In the year ended 31 March clean and safe environment for future household members of Sellafield 2021, all costs incurred by the Company generations’, the Strategy outlines the employees. in the performance of the Services type of organisation we want to be, Agreement are directly recoverable whilst clearly setting our 2020-2025 from the NDA (2020: same). objectives. 4 Sellafield Ltd Annual Report and Financial Statements 2020/2021 Strategic report continued Lifetime value for money In April 2020, one of our employees was Key learning opportunities are escalated • Enabled a new era of remote injured while working on electrical to the Sellafield Limited Executive, to working, with 7,000 users migrated equipment. This was due to an arc flash ensure significant issues impacting onto the new remote access during work to move an 11 kilovolt Ring safety, reliability and performance across solution, which also incorporated a Main Unit. The Company was the site are addressed. This involves Windows 10 upgrade and adopting subsequently prosecuted by the Office periodic reviews for the Nuclear Microsoft Teams as a corporate for Nuclear Regulation (ONR) under Independent Oversight and Nuclear engagement tool. Section 2 (1) of the Health and Safety at Safety organisations to identify Work Act. The Company recognised the enterprise issues – including significant Safety performance seriousness of this matter as reflected in events, adverse trends, long-standing its guilty plea and full cooperation with cross-functional issues, to enable Operating safely, whilst maintaining the ONR, including sharing the findings of informed executive decisions on security of the site and nuclear assets, is its internal investigation. The Company prioritised actions and improvement the Company’s priority. In 2020/21 was found guilty at a hearing in Carlisle activities required to address key Sellafield Limited’s safety performance Magistrates’ Court in December 2020 learning opportunities and focus the improved compared to 2019/20, and was fined £320,000. The Company staff on resolving long-standing although this was partly due to the is incorporating the lessons learned enterprise issues. reduction in operations as a result of the from this incident to improve our pandemic. The Company’s safety performance in this area and prevent a Changing the way that we work metrics performed well against the recurrence. corporate targets. However, there are a with our supply chain number of other areas that impacted on Safety performance The Company’s work at Sellafield can the overall
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