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Research Council: Finance

Volume 464: debated on Monday 15 October 2007

To ask the Secretary of State for Business, Enterprise and Regulatory Reform pursuant to the answer of 10 September 2007, Official Report, columns 2042-43W, on the Research Council: finance, what restructuring of British Energy was involved; and if he will make a statement. (157731)

As part of the restructuring of British Energy (BE) in January 2005, the Government took on responsibility for the company’s historic spent fuel liabilities for the period up to the restructuring. The total cost of these liabilities was estimated in the Department’s 2006-07 accounts as £2.4 billion, and is based on the forecast payment schedule up to 2029 which is set out in the waste processing contracts agreed between BE, BNFL and the Department.

Payments since 2004-05 have been approximately £200 million per annum, and future payments are estimated to be £200 million (undiscounted at March 2007 prices) per annum until 2013-14. Amounts are then expected to fall each year thereafter until 2029.