The Nuclear Decommissioning Authority’s management of the Magnox contract Contents

Introduction

The Nuclear Decommissioning Authority (NDA) is the government agency, sponsored by the Department for Business, Energy & Industrial Strategy (the Department), with responsibility for decommissioning the UK’s civil nuclear sites that are no longer producing electricity. The NDA’s estate includes 17 sites, 12 of which (10 power stations and two research facilities) had been managed by Cavendish Fluor Partnership (CFP) under a contract awarded in 2014 (the Magnox contract). In 2018 we reported on the catastrophic failure of the NDA’s procurement and management of this contract. We reported that the failure had cost the taxpayer around £122 million and that a lack of commercial skills in the NDA, compounded by inadequate knowledge of the Magnox sites, were key causes of the failure. The NDA negotiated the termination of the Magnox contract with CFP in 2017, with a consequent additional £20 million cost to the taxpayer to leave the contract. In September 2019, after a two-year contractual notice period, the NDA brought the Magnox sites under the management of its wholly owned subsidiary, Magnox Ltd. We took evidence from both the Department and the NDA on the termination of the Magnox contract. The evidence covered a wide range of topics relevant to the NDA and the Department’s management and oversight of the decommissioning of the UK’s nuclear sites. This report, therefore, covers both the decommissioning of the Magnox sites and broader strategic challenges facing the Department and the NDA.




Published: 27 November 2020 Site information    Accessibility statement