Nuclear Decommissioning Authority Annual Report & Accounts 2019/20 HC 557 NDA Annual Report and Accounts 2019/20 2 NDA Annual Report and Accounts 2019/20 Nuclear Decommissioning Authority Annual Report and Accounts 2019/20 Report presented to Parliament pursuant to Section 14 (6) of the Energy Act 2004 and Accounts presented to Parliament pursuant to Section 26 (10) of the Energy Act 2004. Report laid before the Scottish Parliament pursuant to Section 14 (8) of the Energy Act 2004 and Accounts laid before the Scottish Parliament pursuant to Section 26 (11) of the Energy Act 2004. Ordered by the House of Commons to be printed on 21 July 2020 HC 557 SG/2020/115 3 NDA Annual Report and Accounts 2019/20 © Nuclear Decommissioning Authority copyright 2020 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. 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Any enquiries regarding this publication should be sent to us at: Nuclear Decommissioning Authority, Herdus House, Westlakes Science and Technology Park, Moor Row, Cumbria, CA24 3HU ISBN 978-1-5286-2071-0 CCS0720848712 07/20 Printed on paper containing 75% recycled fibre content minimum Printed in the UK by the APS Group on behalf of the Controller of Her Majesty’s Stationery Office 4 NDA Annual Report and Accounts 2019/20 5 NDA Annual Report and Accounts 2019/20 Contents Overview of Performance 10 Chairman’s statement 12 Chief Executive’s review 14 Financial review 16 The NDA 18 The NDA group 20 How we’re organised 22 One NDA 24 Our strategic approach and themes 25 Our 4 driving themes 26 Our 47 outcomes 30 Critical enablers 32 2019/20 highlights Accountability Report 46 Directors’ Report 48 Statement of Accounting Officer’s esponsibilitiesr 49 Governance statement 73 Remuneration and People Report 83 Health, Safety, Security, Environment & Wellbeing Report 87 Financial Summary 2019/20 89 Nuclear Provision 91 Parliamentary accountability disclosures 93 The audit report of the Comptroller and Auditor General to the House of Parliament Annual Accounts 96 Annual accounts Performance Analysis and other information 145 Performance analysis 173 Glossary and abbreviations 175 Useful links and documentation 176 Contact details 177 Appendix A - Nuclear Provision 179 Appendix B - NDA group - Summary of events confirmed as INES1 or higher during 2019/20 180 Appendix C - Major Projects Cost and Schedule 6 NDA Annual Report and Accounts 2019/20 2019/20 Highlights: 38 Site Decommissioning and Remediation 2019/20 Highlights: Nuclear Materials A word from our CEO 12 34 The NDA 16 The NDA 18 group Directors’ Report 46 7 NDA Annual Report and Accounts 2019/20 Overview of performance 2019/20 This overview section provides an insight into our work during 2019/20 and highlights areas of progress for this year. We have described these using our 5 strategic themes. 8 NDA Annual Report and Accounts 2019/20 “Over the last 12 months we’ve taken a series of important steps to strengthen and simplify the way our group is organised” David Peattie, NDA Chief Executive 9 NDA Annual Report and Accounts 2019/20 Message from the Chairman Tom Smith Many important milestones and plans were realised in 2019/20 and the NDA became a stronger, more capable and confident body. 2019/20 was a pivotal year To provide stability for the NDA also continued to be good, with for the NDA, both in working Board against this backdrop, I no serious accidents or injuries towards our decommissioning am continuing as Chair until 31 during the year. targets and organisationally. August 2020. It’s a privilege to Of course, the final weeks of the be able to continue my support We’re not complacent though year brought the uncertainty of for the organisation and my and know that there’s always a global pandemic and we, like colleagues in these uncertain room for improvement. Openly other organisations, have had times. and transparently reporting to deal with the challenges of on how the NDA is delivering COVID-19. Performance against its plans and spending taxpayer money will remain a priority for the NDA Board Unprecedented challenges I’m delighted that during 2019/20 and indeed ‘openness’ is one many important milestones and of our corporate values. The At the start of the 2019/20 plans were realised, in some organisation’s new Mission financial year we couldn’t have cases after years of painstaking Progress Report, developed last anticipated the scale of the planning and preparatory work. year, is an important step forward challenges that were to face Such is the long-term and in enabling stakeholder scrutiny. people and businesses across complex nature of our mission it the world in 2020. The NDA has, at times, been a challenge to group has responded to the demonstrate the progress we’re Progress towards One NDA global COVID-19 crisis with making. Being able to publicly professionalism and empathy. celebrate some major milestones, In the last couple of years, While the virus has impacted the such as completing defueling at the extent and depth of the majority of our operations, I’m all our Magnox sites, is a seminal changes to the way in which pleased as I write this that our moment for our mission. Our the NDA leads the mission sites have been able to safely workforces and supply chain have been significant. Under resume some important activities. deserve praise and recognition David Peattie’s leadership, There remains much uncertainty for what they have achieved. the NDA and its group have however about longer term The NDA’s safety performance, moved to relationships based impacts. one of the Board’s top priorities, on collaboration instead of 10 NDA Annual Report and Accounts 2019/20 “The extent and depth of the changes to the way in which the NDA leads the mission have been significant.” commercial contracts. I’ve seen indicated that she had accepted experience has been enhanced a real appetite for this approach, a long-term consultancy role by working with so many offering great opportunity for within the nuclear industry and dedicated and talented people, the NDA to drive and sustain because of the resultant conflict who I shall miss. Our workforce continuous improvement and of interest she gave notice of her is a true asset and I’d like to value for money. resignation from the Board, with thank them for the determination, effect from that date. ingenuity, pride and passion The NDA Corporate Centre is they bring to our clean-up now a stronger, more capable We also had a change in programme. and confident body. Though we executive membership of the still await the outcome of the board following the appointment I also want to thank our site Magnox Inquiry, I’m confident of Mel Zuydam as our Chief stakeholder groups. They that David and his leadership Financial Officer, replacing provide, in equal measure, team, with support and challenge David Batters who left us after support for and challenge to from the Board, have taken the many years of committed our work and they are essential necessary steps to address the service to the NDA. Mel has a to the success of our mission. shortcomings of the past and strong track record in financial It has been a rewarding feature make us a better, stronger NDA. change, business growth and of leading the NDA to have performance management contributed to the valuable Board changes and has worked across both economic support we are able the private and public sector. to provide to the communities in Finally, I’m delighted that Dr. Ros Over 2019/20 we said goodbye which we operate. Rivaz has been appointed as to non-executive Board my successor, to step into the members Candida Morley and As I prepare to depart I’d like to role on 1 September 2020. Ros’ her successor David Long, wish the NDA well for the future. wide experience at senior levels both representatives of our I’ll watch, with interest and pride, across multiple industries will be shareholder UKGI. I’d like to continued progress in dealing of enormous value to the NDA. thank them for their valuable with the UK’s nuclear legacy. I wish her every success in the contributions. In David’s place role. we welcome Alex Reeves, also a UKGI director. To strengthen Thanks Tom Smith further the Board’s range of NDA Chairman expertise, Michelle Heath, who Leading the NDA Board as Chair has a career in the nuclear has been one of the highlights industry spanning 20 years, was of my working life. I am proud appointed as an additional and privileged to have held such non-executive member. responsibility in a mission of national environmental, safety On 30 June 2020, Michelle and security importance. The 13 July 2020 11 NDA Annual Report and Accounts 2019/20 Chief Executive’s review David Peattie We’ve enjoyed a year of success - strengthening the NDA group and progressing our decommissioning mission. We’re charged with cleaning up decommissioning activity and Ltd to a subsidiary of the NDA, the UK’s earliest nuclear sites expected reduction in commercial taking another very important safely and securely. Our mission revenue. step in this strategic shift. Led by to decommission our 17 sites is at chair Lawrie Haynes and CEO the heart of the work we do.