Further supplementary memorandum submitted
by the Department of Trade and Industry
British Energy—Liabilities figures
1. Members asked for information on the
discounted liabilities figures for British Energy, as calculated
using HM Treasury's Green Book declining discount rates for long
term liabilities.
2. This note supplements the earlier note
submitted by the Permanent Secretary's office to the PAC on 3
April 2007[10]
following an amendment of the discount factor calculation. This
amendment was discussed in the letter from Peter Gray of the NAO
to Helen Goodman MP on 25 May 2007. The impact of the amendment
is to decrease the British Energy liabilities as calculated using
the Green Book rates from £5.4 billion to £5.1 billion.
3. The table below summarises the British
Energy liabilities position. The detailed background information
on British Energy remains as per the earlier note.
| | |
| |
| Description of liability | Undiscounted
£'bn
| 2005-06[11]
BE Accounts
(3%)
£'bn
| 2005-06 DTI
Accounts
(2.2%)
£'bn
| 2005-06
Liabilities as
calculated
using the
Green Book
discount rates
£'bn
|
| | |
| |
| Historic Spent Fuel Liabilities | 2.9
| 2.2 | 2.4 | 2.2
|
| Uncontracted liabilities | 2.5
| 0.5 | 0.7 | 0.4
|
| Decommissioning costs | 8.6
| 2.7 | 3.3 | 2.5
|
| Total | 14.0 | 5.4
| 6.4 | 5.1 |
| | |
| |
| | |
| |
10
Ev 16 Back
11
2005-06 refers to the liabilities as at the year end date 31
March 2006. Back
| 
