NLF Annual Report 2018

Total Page:16

File Type:pdf, Size:1020Kb

NLF Annual Report 2018 Protecting the future — Annual report and accounts 2018 nlf.uk.net “ The primary objective of the board is to achieve sufficiency of the Fund to meet certain costs of decommissioning EDFE’s eight nuclear power stations that are currently operating in the UK.” Richard Wohanka Chair Nuclear Liabilities Fund 1 — Contents 2 Chair’s statement 2 Protecting future generations 4 Strategic report 4 Our key performance indicators 8 Review of the year 12 Principal risks and uncertainties 14 Director’s report 14 Director’s report for the year ended 31 March 2018 20 Directors 20 Statement of Directors’ responsibilities 22 Independent auditor’s report 22 Independent auditor’s report to the members of the Nuclear Liabilities Fund Limited 24 Financial statements 24 Statement of comprehensive income 25 Statement of financial position 26 Statement of changes in equity 27 Statement of cash flows 28 Notes to the financial statements 52 Company information Annual report and accounts 2018 Contents 2 Nuclear Liabilities Fund — Chair’s statement Protecting future generations The financial year ending 31 March 2018 was eventful for the Nuclear Liabilities Fund (‘NLF’ or the ‘Fund’) as preparations intensify for the start of decommissioning of the first Advanced Gas Cooled Reactors (‘AGR’) in the nuclear fleet of EDF Energy Nuclear Generation Limited (‘EDFE’). This is currently planned to commence in about five years’ time and will mark the start of a long journey that will take about 100 years to complete. As directors we are conscious of this timeline. Whilst we have to prepare for the large step up in payments % in a few years’ time with the first 80 reactor closure, we also have to seek to ensure there are sufficient funds to cover the final decommissioning Richard Wohanka costs that occur in the next century. Chair Approximately 80% of the assets are — The aim of the Fund is to help ensure held in the National Loans Fund and that future generations are not 20% in the Mixed Assets Portfolio. burdened by decommissioning costs related to the consumption of nuclear generated energy by the present generation.1 It is this that deeply influences our investment strategy Whilst the Mixed Assets Portfolio has and the work we do to assist in both performed in line with our targets, the reducing the near and long-term continued low level of interest rates liabilities and having greater certainty which apply to the NatLF has meant about their scale. that the overall portfolio has not. Our investment strategy and its The directors are keenly aware of results are discussed in more detail the risks to the sufficiency of the later, but the continuing low level of Fund. In last year’s annual report, interest rates during the year have we noted that we were working with made it more challenging to ensure the Department for Business, Energy the Fund has sufficient assets to meet and Industrial Strategy (‘BEIS’), the liabilities for decommissioning HM Treasury and UK Government the EDFE nuclear power stations 1 The primary purpose of the Fund is to receive and Investments (‘UKGI’) to agree a hold monies, investments and other assets, in that are due to be met by the Fund. plan to diversify funds currently held order to secure funding for discharging certain Approximately 80% of the assets in the NatLF. I am pleased to confirm decommissioning liabilities related to EDFE’s UK nuclear power stations which were in existence are held in the National Loans Fund that a programme of transferring in 1996 and to make payments for approved costs (‘NatLF’)2 and 20% in a portfolio of approximately £2bn is now underway in accordance with the provisions of the Nuclear Liabilities Funding Agreement (‘NLFA’) entered into mixed assets (the ‘Mixed Assets and is expected to be completed on 14 January 2005 and amended and restated on Portfolio’) which are long term in by FY2021/22. 5 January 2009. nature and seek to exploit the 2 The National Loans Fund, established on 1 April illiquidity premium attached to 1968 and administered by HM Treasury accounts for government borrowing and lending. many financial assets. Chair’s statement Annual report and accounts 2018 Nuclear Liabilities Fund 3 The sufficiency of the Fund’s assets is The Fund also plays a role, at a The directors have worked closely monitored carefully and the directors strategic level, in helping scrutinise and with NDA’s Nuclear Liabilities regularly explore new areas in which challenge EDFE’s decommissioning Assurance (‘NLA’) team all year and to invest, including opportunities liabilities, primarily through participation wish to thank them for the diligent where the Fund can contribute to in two committees. The directors work undertaken to vet EDFE’s initiatives to strengthen the British have been working assiduously on liabilities that have been and are economy. We are already a large the liabilities side during the year. to be met from the Fund’s assets. investor in British venture capital The directors actively participate in funds; however, we are increasing the body which examines EDFE’s The directors continue to work closely our activity in this field and are overall approach to decommissioning with both UKGI and EDFE and wish to pleased to be working closely with a (‘the Nuclear Liabilities Committee’ thank them both for support provided Government backed institution as part or ‘NLC’) as well as the body that is throughout the year. of discussions to diversify the funds driving the approach to defueling out of the NatLF. We are also active the stations (‘the Defueling Steering The primary objective of the in the work being undertaken as part Panel’ or ‘DSP’). In addition, the board is to achieve sufficiency of of the Patient Capital Review. directors commissioned and reviewed the Fund to meet certain costs of a study which recommended the decommissioning EDFE’s eight As a matter of principle, we hold a approach that should be adopted nuclear power stations that are significant percentage of our assets to estimate the increase in liabilities currently operating in the UK. We in UK related investments. We see due to inflation over the long time base our quantification of these this as a natural currency hedge for period required for defueling and decommissioning costs on EDFE’s EDFE’s decommissioning liabilities decommissioning the EDFE fleet fundamental review, every three years, as well as enabling us to play a of nuclear power stations. of their decommissioning plans. supportive role in the development The last such review took place in of the UK economy. Currently During the year, there were changes to 2016. The Mixed Assets Portfolio approximately 82% of our assets membership of the board and internal has produced strong returns over are in UK related investments and resource, notably the appointment of the last few years. This, combined approximately 31% of our Mixed Sally Bridgeland as trustee and director with the benign inflation environment Asset Portfolio assets are in UK in April 2017, and Catherine Cripps currently predicted for EDFE’s infrastructure projects. as trustee and director and Melissa decommissioning liabilities and the Hope as Executive Secretary, both planned programme of transferring in November 2017. We continue to approximately £2bn from the NatLF consider fund resources as we plan to higher returning assets enables for increasing activities in asset the directors to report the Fund is on management and the increase of track to be sufficient. However, the liability payments in the future. directors are cognisant that they will need to be extremely vigilant and pro-active and keep both liabilities and investments under regular review. Richard Wohanka 100 Chair It will take about 100 years to complete decommissioning. Annual report and accounts 2018 Chair’s statement 4 Nuclear Liabilities Fund — Strategic Report Our key performance indicators A year of growth An investment in the M25 forms part of the Fund’s infrastructure portfolio. The Fund’s investment performance is assessed using key performance indicators (‘KPIs’) agreed with UKGI on behalf of BEIS. The KPIs and investment objectives are established to measure performance against the expected future liability obligations. The aim is to provide a summary of the overall returns of the Fund, and a more detailed view of the returns of the Mixed Assets Portfolio. The KPIs are discussed in more detail in the Investment Performance section. Strategic report Annual report and accounts 2018 Nuclear Liabilities Fund 5 KPI 1: Total Portfolio Return* KPI 2: Mixed Assets Portfolio Return* 0.5% 0.6% 2015 — 5.6% 2015 — 7.7% 2016 2016 0.5% 0.5% 3.1% 16.7% 2016 — 5.6% 2016 — 7.7% 2017 2017 0.3% 0.3% 1.2% 5.3% 2017 — 2017 — 2018 5.6% 2018 7.6% 0.2% 0.2% 3 year 1.6% 3 year 7.3% period to period to 31 March 5.6% 31 March 7.7% 2018 2018 0.4% 0.4% Total Portfolio Return p.a. Total Portfolio Return p.a. Target Return p.a.3 Target Return p.a.5 Risk Free Rate p.a.4 Risk Free Rate p.a.4 Total Portfolio Return Mixed Assets % 3 year period to % Portfolio Return 31 March 2018 3 year period to 1.6 7.3 31 March 2018 The lower than predicted returns from the NatLF remain The Mixed Assets Portfolio is that portion of the NLF’s the primary driver of under-performance at the total funds not currently invested in the NatLF. portfolio level. The Chair’s statement refers to the re-allocation plan being pursued to redress this situation. * As of 31/03/2018, £7.3bn (79.0% of the Fund) was invested in the National Loans Fund and £1.9bn (21.0% of the Fund) in the Mixed Assets Portfolio.
Recommended publications
  • Annual-Report-And-Accounts-2019.Pdf
    Satisfying the changing needs of our customers Enabling the transition to a lower carbon future Annual Report and Accounts 2019 Group Snapshot Centrica plc is a leading international energy services and solutions provider focused on satisfying the changing needs of our customers and enabling the transition to a lower carbon future. The world of energy is changing rapidly and Centrica is now equipped to help customers transition to a lower carbon future, with capabilities and technologies to allow them to reduce their emissions. Therefore, we announced in July 2019 our intention to complete the shift towards the customer, by exiting oil and gas production. The Company’s two customer-facing divisions, Centrica Consumer and Centrica Business, are focused on their strengths of energy supply and its optimisation, and on services and solutions, with a continued strong focus on delivering high levels of customer service. Centrica is well placed to deliver for our customers, our shareholders and for society. We aim to be a good corporate citizen and an employer of choice. Technology is increasingly important in the delivery of energy and services to our customers. We are developing innovative products, offers and solutions, underpinned by investment in technology. We are targeting significant cost efficiency savings by 2022 to position Centrica as the lowest cost provider in its markets, consistent with our chosen brand positioning and propositions. Alongside our distinctive positions and capabilities, this will be a key enabler as we target
    [Show full text]
  • IAEA Nuclear Energy Series Costing Methods and Funding Schemes for Radioactive Waste Disposal Programmes No
    IAEA Nuclear Energy Series IAEA Nuclear No. NW-T-1.25 No. IAEA Nuclear Energy Series Costing Methods and Funding Schemes for Radioactive Waste Disposal Programmes Costing Methods and Funding Schemes for Radioactive Waste No. NW-T-1.25 Basic Costing Methods and Principles Funding Schemes for Radioactive Waste Objectives Disposal Programmes Guides Technical Reports INTERNATIONAL ATOMIC ENERGY AGENCY VIENNA @ IAEA NUCLEAR ENERGY SERIES PUBLICATIONS STRUCTURE OF THE IAEA NUCLEAR ENERGY SERIES Under the terms of Articles III.A.3 and VIII.C of its Statute, the IAEA is authorized to “foster the exchange of scientific and technical information on the peaceful uses of atomic energy”. The publications in the IAEA Nuclear Energy Series present good practices and advances in technology, as well as practical examples and experience in the areas of nuclear reactors, the nuclear fuel cycle, radioactive waste management and decommissioning, and on general issues relevant to nuclear energy. The IAEA Nuclear Energy Series is structured into four levels: (1) The Nuclear Energy Basic Principles publication describes the rationale and vision for the peaceful uses of nuclear energy. (2) Nuclear Energy Series Objectives publications describe what needs to be considered and the specific goals to be achieved in the subject areas at different stages of implementation. (3) Nuclear Energy Series Guides and Methodologies provide high level guidance or methods on how to achieve the objectives related to the various topics and areas involving the peaceful uses of nuclear energy. (4) Nuclear Energy Series Technical Reports provide additional, more detailed information on activities relating to topics explored in the IAEA Nuclear Energy Series.
    [Show full text]
  • Annex D Major Events in the Energy Industry
    Annex D Major events in the Energy Industry 2018 Energy Prices In February 2018 the Domestic Gas and Electricity (Tariff Cap) Bill was introduced to Parliament, which will put in place a requirement on the independent regulator, Ofgem, to cap energy tariffs until 2020. It will mean an absolute cap can be set on poor value tariffs, protecting the 11 million households in England, Wales and Scotland who are currently on a standard variable or other default energy tariff and who are not protected by existing price caps. An extension to Ofgem’s safeguard tariff cap was introduced in February 2018 which will see a further one million more vulnerable consumers protected from unfair energy price rises. Nuclear In June 2018 the Government announced a deal with the nuclear sector to ensure that nuclear energy continues to power the UK for years to come through major innovation, cutting-edge technology and ensuring a diverse and highly-skilled workforce. Key elements include: • a £200 million Nuclear Sector Deal to secure the UK’s diverse energy mix and drive down the costs of nuclear energy meaning cheaper energy bills for customers; • a £32 million boost from government and industry to kick-start a new advanced manufacturing programme including R&D investment to develop potential world-leading nuclear technologies like advanced modular reactors; • a commitment to increasing gender diversity with a target of 40% women working in the civil nuclear sector by 2030. 2017 Energy Policy In October 2017 the Government published The Clean Growth Strategy: Leading the way to a low carbon future, which aims to cut emissions while keeping costs down for consumers, creating good jobs and growing the economy.
    [Show full text]
  • Decommissioning and Dismantling
    Decommissioning and dismantling Jan Willem Storm van Leeuwen independent consultant member of the Nuclear Consulting Group July 2019 [email protected] Note In this document the references are coded by Q-numbers (e.g. Q6). Each reference has a unique number in this coding system, which is consistently used throughout all publications by the author. In the list at the back of the document the references are sorted by Q-number. The resulting sequence is not necessarily the same order in which the references appear in the text. m04decom+dism20190722 1 25 July 2019 Contents 1 Concepts and facts Decommissioning of nuclear power plants: three approaches Complete sequence of decommissioning and dismantling Legacy to be decommissioned and dismantled Radioactivity of reactors and other structures Dismantling of reprocessing plants Uncertain radioisotopic composition 2 Physical assessment Energy investment of decommissioning and dismantling Advanced reference reactor Radioactive waste 3 Practice and experiences Ambiguous definitions of decommissioning and dismantling Dismantled nuclear reactors Decommissioning of the West Valley reprocessing plant Cleanup of the Hanford Site Decommissioning in the UK Canadian NPD Closure Project 4 Costs and liabilities Decommissioning in the USA Decommissioning in the UK French estimate Extrapolation of Greifswald figures Swiss estimate View of the WNA Comments by Reuters Remarks 5 Responsibilities and liabilities: view of the nuclear industry View of the IAEA View of the WNA 6 Preditable problems for the future
    [Show full text]
  • Costs of Decommissioning Nuclear Power Plants
    Nuclear Development 2016 Costs of Decommissioning Nuclear Power Plants NEA Nuclear Development Costs of Decommissioning Nuclear Power Plants © OECD 2016 NEA No. 7201 NUCLEAR ENERGY AGENCY ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT The OECD is a unique forum where the governments of 34 democracies work together to address the economic, social and environmental challenges of globalisation. The OECD is also at the forefront of efforts to understand and to help governments respond to new developments and concerns, such as corporate governance, the information economy and the challenges of an ageing population. The Organisation provides a setting where governments can compare policy experiences, seek answers to common problems, identify good practice and work to co-ordinate domestic and international policies. The OECD member countries are: Australia, Austria, Belgium, Canada, Chile, the Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Israel, Italy, Japan, Korea, Luxembourg, Mexico, the Netherlands, New Zealand, Norway, Poland, Portugal, the Slovak Republic, Slovenia, Spain, Sweden, Switzerland, Turkey, the United Kingdom and the United States. The European Commission takes part in the work of the OECD. OECD Publishing disseminates widely the results of the Organisation’s statistics gathering and research on economic, social and environmental issues, as well as the conventions, guidelines and standards agreed by its members. This
    [Show full text]
  • Satisfying the Changing Needs of Our Customers
    Satisfying the changing needs of our customers Annual Report and Accounts 2018 Group Highlights Group Operational Group Financial Summary Performance (Year ended 31 December 2018) Total customer account holdings Group Revenue Return on average capital employed – Consumer (‘000) (ROACE) 2018 25,067 £29.7bn 13% 2017 25,316 2017: £28.0bn 2017: 14% 6% 1ppt Total customer account holdings Adjusted operating profit Statutory operating profit – Business (‘000) 2018 1,209 £1,392m £987m 2017 1,273 2017: £1,247m(1) 2017: £481m(1) 12% 105% Total customer gas consumption Adjusted earnings Statutory profit for the year (mmth) attributable to shareholders Total customer gas consumption 2018 12,465 £631m £183m 2017 11,630 2017: £693m(1) 2017: £328m(1) 9% 44% Total customer electricity Adjusted basic earning per share Statutory basic earning per share consumption (GWh) (EPS) Total customer electricity 2018 130,350 11.2p 3.3p 2017 133,869 2017: 12.5p(1) 2017: 5.9p(1) 10% 44% Direct Group headcount(2) Adjusted operating cash flow Statutory net cash flow Direct Group headcount from operating activities 2018 30,520 2017 33,138 £2,245m £1,934m 2017: £2,069m 2017: £1,840m 9% 5% Total recordable injury frequency Group net debt Net exceptional charge after taxation rate per 200,000 hours worked included in statutory profit Lost time injury frequency rate 2018 1.02† £2,656m £235m 2017 0.98 2017: £2,596m 2017: £476m 2% 51% (1) Restated for adoption of IFRS 15: revenue from contracts with customers. (2) Direct Group headcount excludes contractors, Read more about our Key Performance Indicators agency and outsourced staff.
    [Show full text]
  • Panel Agreement RM3787 for the Provision of Finance and Complex Legal Service
    Simmons & Simmons LLP Prospectus Panel Agreement RM3787 for the provision of Finance and Complex Legal Service March 2021 v.5 STRICTLY PRIVATE AND CONFIDENTIAL Contents Introduction ............................................................................................................................................................... 1 Managing COVID-19 Risks ................................................................................................................................... 2 A Brexit Focus ......................................................................................................................................................... 4 Projects of Exceptional Innovation & Complexity .............................................................................................. 6 High Value/Complex Transactions and Disputes in Regulated Markets/Environments .............................. 8 Rescue, Restructuring & Insolvency .................................................................................................................. 10 Investment and Asset Management .................................................................................................................. 12 Financial Services, Market and Competitive Regulation ................................................................................ 14 Investment and Commercial Banking ................................................................................................................ 16 High Value/Complex Merger & Acquisition
    [Show full text]
  • Financial Statements
    Financial Statements 104 Independent Auditor’s Report 114 Group Income Statement 115 Group Statement of Comprehensive Income 116 Group Statement of Changes in Equity 117 Group Balance Sheet 118 Group Cash Flow Statement 119 Notes to the Financial Statements 196 Company Financial Statements 198 Notes to the Company Financial Statements 208 Gas and Liquids Reserves (Unaudited) 210 Ofgem Consolidated Segmental Statement Financial Statements Centrica plc Annual Report and Accounts 2019 103 Financial Statements | Independent Auditor’s Report Independent Auditor’s Report Report on the audit of the financial statements The financial reporting framework that has been applied in the Opinion preparation of the Group Financial Statements is applicable law and IFRSs as adopted by the European Union. The financial In our opinion: reporting framework that has been applied in the preparation of • the Financial Statements of Centrica plc (the ‘parent company’) the parent company Financial Statements is applicable law and and its subsidiaries (the ‘Group’) give a true and fair view of the United Kingdom Accounting Standards, including FRS 101 state of the Group’s and of the parent company’s affairs as at 31 “Reduced Disclosure Framework” (United Kingdom Generally December 2019 and of the Group’s loss for the year then ended; Accepted Accounting Practice). • the Group Financial Statements have been properly prepared in accordance with International Financial Reporting Standards Basis for opinion (IFRSs) as adopted by the European Union; We conducted our audit in accordance with International • the parent company Financial Statements have been properly Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our prepared in accordance with United Kingdom Generally responsibilities under those standards are further described in the Accepted Accounting Practice, including Financial Reporting auditor’s responsibilities for the audit of the Financial Statements Standard 101 “Reduced Disclosure Framework”; and section of our report.
    [Show full text]
  • 75359 the Nuclear Trust and Nuclear Liabilities Fund, Trustee-Director
    Trustee-Director | Nuclear Liabilities Fund Candidate brief for the position of Trustee-Director and Chair of Audit Committee The Nuclear Trust and Nuclear Liabilities Fund January 2020 c odgersberndtson.com 1 Trustee-Director | Nuclear Liabilities Fund Contents About the Nuclear Trust and Nuclear Liabilities Fund 3 The Board 4 The Role 5 The Individual 6 Additional Information 7 How to Apply 9 Candidate Charter 10 odgersberndtson.comodgersberndtson.com 2 Trustee-Director | Nuclear Liabilities Fund About the Nuclear Trust and Nuclear Liabilities Fund The Nuclear Liabilities Fund (NLF) holds approximately £9.5 billion and was established to help ensure that the industry can meet its security and environmental responsibilities regarding the waste management and decommissioning of nuclear power plants which are currently operational. Background The NLF was established in March 1996 to meet the costs of decommissioning the UK’s second-generation nuclear power stations, which are currently operated by EDF Energy Nuclear Generation Group (EDFE). It is a Scottish registered company controlled by The Nuclear Trust, a public Trust established under Scottish Law. The Fund helps ensure the industry is able to meet its security and environmental responsibilities with regard to the waste management and decommissioning of EDFE’s nuclear plants. By convention, the Trustees of the Nuclear Trust appoint themselves as directors of the NLF, with the Trust Chair chairing the NLF Board. Three of the Trustee-Directors are appointed by the Secretary of State for Business, Energy and Industrial Strategy (BEIS) and two by EDFE. UK Government Investments (UKGI) is responsible for oversight of NLF governance and performance on behalf of BEIS.
    [Show full text]
  • 2007-08 As I Was Able to Report in My Statement Last Year, Some 28% of the Fund’S Interest in BE Was Realised on 31 May 2007
    Company Number: SC164685 NUCLEAR LIABILITIES FUND LIMITED ANNUAL REPORT YEAR ENDED 31 MARCH 2008 NUCLEAR LIABILITIES FUND LIMITED COMPANY INFORMATION Directors The Lady Balfour of Burleigh CBE Mr G Jenkins Ms A Richards Sir James Sassoon Mr D Stewart CVO Secretary Mr D A Venus PKF (UK) LLP Farringdon Place 20 Farringdon Road London EC1M 3AP Company Number SC164685 Registered Office 16 Rothesay Place Edinburgh EH3 7SQ Auditors Deloitte & Touche LLP Chartered Accountants London Solicitors Linklaters LLP 1 Silk Street London EC2Y 8HQ Shepherd and Wedderburn LLP 1 Exchange Crescent Conference Square Edinburgh EH3 8UL Bankers HSBC Bank Plc Mariner House Pepys Street London EC3N 4DA Investment Managers State Street Global Advisors 21 St James's Square London SW1 4SS LaSalle Investment Management 19 Hanover Square London W1R 9DA Custodians HSBC Bank Plc Global Investor Services Mariner House Pepys Street London EC3N 4DA NUCLEAR LIABILITIES FUND LIMITED CONTENTS Page CHAIRMAN'S STATEMENT 1 - 2 DIRECTORS' REPORT 3 - 6 STATEMENT OF DIRECTORS' RESPONSIBILITIES 7 INDEPENDENT AUDITORS' REPORT 8 - 9 PROFIT AND LOSS ACCOUNT 10 STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES 11 BALANCE SHEET 12 CASH FLOW STATEMENT 13 NOTES TO THE FINANCIAL STATEMENTS 14 - 27 NUCLEAR LIABILITIES FUND LIMITED CHAIRMAN'S STATEMENT YEAR ENDED 31 MARCH 2008 The directors are pleased to present the twelfth An nual Report of Nuclear Liabilities Fund Limited (th e "Fund") for the year to 31 March 2008. Purpose of the Fund The Fund was incorporated on 28 March 1996 with the principal object of providing arrangements for funding certain long-term costs of decommissioning the nuclear power stations of British Energy plc (“BE”) existing at 20 March 1996.
    [Show full text]
  • Nuclear Decommissioning Costs
    Nuclear decommissioning costs Extract from the July 2017 Fiscal risks report 6.90 The uncertain future costs of safely decommissioning the UK’s nuclear sites are a material source of fiscal risk. For the older sites, these are the largest single accounting provision in the WGA. Risks relate to the uncertain scope of the decommissioning work, which in turn reflects uncertainties about the amount of nuclear waste that will have to be cleared up and the technologies that will be available to do so, especially over the very long term. 6.91 The costs are managed in different ways, reflecting distinct phases of construction of nuclear facilities in the UK. They form three broad groups: Older sites (the Sellafield reprocessing plant and 16 of the UK’s earliest nuclear sites, including the old Magnox nuclear power stations – the last of which ceased operating at the end of 2015). For these sites, future decommissioning costs fall entirely to government. They are reported as a provision in the Nuclear Decommissioning Authority (NDA) accounts. The cash flows associated with this provision are funded from the Department for Business, Energy and Industrial Strategy (BEIS) DEL. The second generation of sites (the advanced gas-cooled reactor power stations and Sizewell B). Ownership of these power stations and the costs of decommissioning and managing their waste were transferred to the private sector through the privatisation of British Energy in 1996. British Energy was restructured and subsequently acquired by EDF Energy in 2009. As part of the arrangements for privatisation, the Government set up the Nuclear Liabilities Fund (NLF), an independent segregated trust.
    [Show full text]
  • 2004, Was Restructured As the Nuclear Liabilities Fund Limited
    Company Number: SC164685 NUCLEAR LIABILITIES FUND LIMITED (formerly Nuclear Generation Decommissioning Fund L imited) ANNUAL REPORT YEAR ENDED 31 MARCH 2005 NUCLEAR LIABILITIES FUND LIMITED (formerly Nuclear Generation Decommissioning Fund L imited) COMPANY INFORMATION Directors The Lady Balfour of Burleigh Sir Raymond Johnstone Mr G Bagot Mr J M Kennedy Dr J Porteous Secretary Mr D A Venus PKF Farringdon Place 20 Farringdon Road London EC1M 3AP Company Number SC164685 Registered Office 16 Rothesay Place Edinburgh EH3 7SQ Auditors Deloitte & Touche LLP London Solicitors Linklaters 1 Silk Street London EC2Y 8HQ Anderson Strathern 1 Rutland Court Edinburgh EH3 8EY Bankers National Westminster Bank Plc City of London Office P O Box 12258 1 Princes Street London EC2R 8PA Investment Managers State Street Global Advisors 21 St James's Square London SW1 4SS LaSalle Investment Management 19 Hanover Square London W1R 9DA Custodians HSBC Bank Plc Global Investor Services Mariner House Pepys Street London EC3N 4DA NUCLEAR LIABILITIES FUND LIMITED (formerly Nuclear Generation Decommissioning Fund L imited) CONTENTS Page CHAIRMAN'S STATEMENT 1 - 2 DIRECTORS' REPORT 3 - 6 STATEMENT OF DIRECTORS' RESPONSIBILITIES 7 INDEPENDENT AUDITORS' REPORT 8 - 9 PROFIT AND LOSS ACCOUNT 10 STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES 11 BALANCE SHEET 12 CASH FLOW STATEMENT 13 NOTES TO THE FINANCIAL STATEMENTS 14 - 28 NUCLEAR LIABILITIES FUND LIMITED (formerly Nuclear Generation Decommissioning Fund L imited) CHAIRMAN'S STATEMENT YEAR ENDED 31 MARCH 2005 I am pleased to present the ninth Annual Report of the Nuclear Liabilities Fund Limited for the year to 31 March 2005. The name of the company changed from Nuclear Generation Decommissioning Fund Limited to Nuclear Liabilities Fund Limited ("the F und") with effect from 18 January 2005.
    [Show full text]