Decommissioning

We speak to Bill Hamilton, Head of Stakeholder Communications at the Nuclear Decommissioning Authority, to see how the authority is handling its targets for 2010 under decreased funding.

NEI: What are the main decommissioning targets for the NDA in 2010?

BH: Building on the platform of significant delivery of recent years, we now need to deliver more demonstrable progress so that our achievements are clear for stakeholders to see. One of the most difficult challenges for us is prioritising our work in the context of available funding. Our bias is always towards high hazard reduction activities but we still have some tough decisions to make. Over the next year we will be focussing on hazard reduction, improving project and operational performance, reducing support and overhead costs, improving organisational effectiveness, and improving the robustness of our strategies and developing options.

NEI: Which areas of your budget are being cut back to appease Whitehall?

BH: Whilst there is so much that we would like to get on with, the implication of operating in a funding constrained environment means that we just can’t do everything. We are therefore exploring and analysing a range of options that will underpin our future strategic approach whilst also helping us to prioritise. In the current economic climate, which has brought increased pressure on public expenditure, it has become even more imperative to channel investments and resources in the right direction. Along with other departments we are engaging with Government in its Public Value Programme to determine a suite of strategic options across our estate. However, this comes before another round of spending reviews where the competition for available funds is likely to be tougher than ever before.

NEI: What changes have been implemented since new CEO Tony Fountain arrived on the scene?

BH: Tony has spent his first few months visiting various sites and speaking to our many and varied stakeholders. He has now initiated a review which aims to make the NDA a more efficient and effective organisation.

NEI: Decommissioning is a costly business. How is the NDA tackling the financial demands to keep on top of targets?

BH: Decommissioning old nuclear facilities is an expensive operation, as the headlines often proclaim, and although the NDA receives Government funding for its core mission, it is also required to seek maximum value from existing assets. Business optimisation is therefore a key activity, generating income that can help to underpin the costs of clean-up while offsetting the demands on the taxpayer.

The NDA focussed on its decommissioning strategy and major stock-take in the early years of its existence, but has also now turned its attention to the process of selling surplus pockets of land, as well as increasing the revenue from the property portfolio inherited from BNFL. For example, over the past year the sale of NDA-owned land at four sites will mean receipts of around £450 million which can be used to support the NDA core mission.

NEI: How is the NDA working with companies in the supply chain to generate more business within the decomm sector?

BH: We are developing a robust understanding of how and where the supply chain is used. We will ensure that we attract the best companies within the supply chain, not just in the nuclear sector, but where there are synergies, such as oil and gas. The Supply Chain Improvement Project aims to make the decommissioning market more attractive for the supply chain by removing barriers to entry into the NDA market; reducing the cost of contracting for the supply chain and the Site Licence Companies (SLCs); improving alignment between SLCs and within the supply chain; and seeking, where appropriate, "fit for purpose" solutions from other markets.