ONR Corportate Plan 2019

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ONR Corportate Plan 2019 OFFICE FOR NUCLEAR REGULATION ANNUAL REPORT AND ACCOUNTS 2018/19 HC 2271 OFFICE FOR NUCLEAR REGULATION ANNUAL REPORT AND ACCOUNTS 2018/19 Presented to Parliament pursuant to Paragraphs 21, 24 and 25(3) of Schedule 7 to the Energy Act 2013. Ordered by the House of Commons to be printed on 20 June 2019. HC 2271 ONR ANNUAL REPORT AND ACCOUNTS 2018/19 | 3 © Crown copyright 2019 This publication is licensed under the terms of the Open Government Licence v3.0 except where otherwise stated. To view this licence, visit: nationalarchives.gov.uk/doc/open-government-licence/version/3. Where we have identifed any third party copyright information you will need to obtain permission from the copyright holders concerned. This publication is available at: www.gov.uk/offcial-documents and www.onr.org.uk Any enquiries regarding this publication should be sent to us at [email protected]. ISBN 978-1-5286-0879-4 CCS1118984353 Printed on paper containing 75% recycled fbre content minimum Printed in the UK by the APS Group on behalf of the Controller of Her Majesty’s Stationery Offce 4 | ONR ANNUAL REPORT AND ACCOUNTS 2018/19 CONTENTS 1 PERFORMANCE REPORT ............................................................................ 6 Chair’s Foreword ..........................................................................................................8 Chief Executive’s Foreword ............................................................................................10 Chief Nuclear Inspector’s Statement .............................................................................. 12 Performance overview ..................................................................................................14 Who we are .................................................................................................................14 What we do ................................................................................................................. 15 Where we do it ............................................................................................................. 17 Key Issues and Risks ......................................................................................................19 Going concern ............................................................................................................ 20 ONR in numbers - 2018/19 ........................................................................................... 22 Performance Summary ................................................................................................ 24 Financial Performance ................................................................................................. 26 2 PERFORMANCE ANALYSIS ........................................................................ 30 Strategic Theme 1 – Infuencing improvements in nuclear sector safety and security .......... 31 Strategic Theme 2 – Inspiring a climate of stakeholder respect, trust and confdence ....... 58 Strategic Theme 3 – Getting the best out of our people ..................................................66 Strategic Theme 4 – Developing a high-performing, sustainable organisation ................ 70 3 ACCOUNTABILITY REPORT .......................................................................78 Corporate Governance Report ..................................................................................... 79 Directors’ Report - Composition of ONR’s Board ........................................................... 79 Sickness Absence ......................................................................................................... 85 Governance Statement ................................................................................................ 87 Statement of Chief Executive’s Responsibilities ..............................................................110 Chief Executive’s statement ..........................................................................................110 Remuneration and Staff Report (including Gender Pay Report) ......................................111 Remuneration Policy .................................................................................................... 112 Staff Information .........................................................................................................119 2019 Gender Pay Report ............................................................................................ 124 Parliamentary Accountability and Audit Report ........................................................... 132 The Certifcate and Report of the Comptroller and Auditor General to the Houses Of Parliament .................................................................................................................134 4 FINANCIAL STATEMENTS ........................................................................ 138 ONR ANNUAL REPORT AND ACCOUNTS 2018/19 | 5 1 PERFORMANCE REPORT PERFORMANCE RepoRT OVERVIEW CHAIR’S FOREWORD In my fnal contribution as Chair for the Offce for Nuclear Regulation (ONR), I am delighted to report that ONR has delivered its mission and vision. Last year, we continued to infuence and improve nuclear safety and security through our enabling approach to safety and making progress to implement Security Assessment Principles (SyAPs) rollout. We have also developed a new safeguards capability in preparation for the UK leaving the European Union (EU), ensuring the UK can continue to meet international non-proliferation obligations. In doing all these, we Nick Baldwin CBE have protected the workforce and the public. ONR Chair until 31 March 2019 We have delivered safety and security outcomes, taking appropriate enforcement action where required, including four prosecutions. We continued to recruit and develop many new staff, and sought to become a role model for improved diversity in the nuclear sector, with many staff short-listed for talent awards for the frst time, and a few winners, demonstrating the calibre and commitment of our people. I am confdent in the senior team’s leadership of ONR, with a single-minded purpose, improved corporate cohesion, and appropriate balance between short, medium and long- term outcomes. This has led to improved staff satisfaction, a transformation in our approach to capability and capacity building through the ONR Academy - a strategic improvement project designed to enhance our learning and development offering - and the frst steps towards a world-class regulatory information and knowledge management system. We said farewell, with thanks, to Jonathan Baume, the Health and Safety Executive’s (HSE’s) appointed Non-Executive Member of the ONR Board and, after eight years, I too leave the Board in the capable hands of Mark McAllister who takes the reins on 1 April 2019. All of this is possible only due to the talented and hard-working staff who choose ONR as their employer. Their enthusiasm, determination and loyalty remain a true constant in ONR’s remarkable history for which I thank them all. I would also like to thank my Board Members for their integrity, dedication, wise counsel and generous support at all times. It has been my pleasure to serve ONR, to see it mature as an excellent regulator, and to help it grow into a truly world-class organisation in every sense. Nick Baldwin CBE ONR Chair 8 | ONR ANNUAL REPORT AND ACCOUNTS 2018/19 PERFPOERRFMANCEORMANCE Repo RepoRT RT OUR MISSION IS TO PROVIDE EFFICIENT AND EFFECTIVE REGULATION OF THE NUCLEAR INDUSTRY, HOLDING IT TO ACCOUNT ON BEHALF OF THE PUBLIC ONRONR ANNU ANNUAL REPORTAL REPORT AND AND ACCOUNTS ACCOUNTS 2018/19 2018/19 | 9 | 9 PERFORMANCE RepoRT CHIEF EXECUTIVE’S FOREWORD I feel proud and privileged to have led ONR through a busy and challenging year where we became stronger than ever. We have continued to deliver our prime purpose of ensuring public safety, while maturing our supporting functions and our corporate ways of working. With one more year of our 2015-2020 strategy ahead, I am delighted that we are on a smooth track to deliver our promises in an uncertain environment. While priding ourselves on our regulatory record, ONR is increasingly outwards and future-focussed, learning lessons from many sectors, and delivering signifcant change well for the short Adriènne Kelbie and longer terms. Chief Executive We worked fexibly to deliver effective regulation to a busy agenda, responding to challenges throughout the nuclear lifecycle. This included advising government regarding new nuclear technology and innovation, assessing designs for new build, responding to economic changes and market decisions, and regulating the Hinkley Point C build. We’ve regulated ageing reactors effectively, which has brought increased technical challenges on graphite cracking. And in decommissioning, fuel and waste, we’ve supported industry to progress remediation of many long-standing hazards in the UK. OUR COMMITMENT TO WORK MORE OPENLY HAS IMPROVED STAKEHOLDER PERCEPTIONS AND LED TO STRONGER ENGAGEMENT WITH THOSE WHO DO NOT FORM PART OF INDUSTRY OR GOVERNMENT. We established a new UK State System of Accountancy for and Control of Nuclear Materials (UK SSAC) function in readiness for a departure from Euratom and developed new emergency planning arrangements for rollout in 2019. The implementation of our SyAPs has needed more time than anticipated, so we adjusted our plans to ensure we focussed on the quality outcomes it is intended to support. Our commitment to work more openly has improved stakeholder perceptions and led
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