Energy Minister (): Today I am notifying
Parliament of the ratification of the 2004 Protocols to amend the
Convention on Third Party Liability in the Field of Nuclear
Energy (the “Paris Convention”) and the Convention Supplementary
to the Paris Convention (the “Brussels Convention”) (together the
“2004 Protocols”) that will come into force on 01 January 2022.
The 2004 Protocols were laid before Parliament in September 2015
under cover of Miscellaneous Series 6 (2015), Command Paper 9135
and Miscellaneous Series 7 (2015), Command Paper 9136
respectively.
The Paris and Brussels Conventions are implemented domestically
through the Nuclear Installations Act 1965. This has been amended
prospectively by the Nuclear Installations (Liability for Damage)
Order 2016 to implement the 2004 Protocols. Ratification of the
2004 Protocols will trigger the remainder of the 2016 Order
coming into force in the UK on 1 January 2022.
Nuclear has a key role to play in our transition to net zero by
2050. Nuclear safety and regulation are of paramount importance
and the risk of any accidents in the UK remain very low.
Nevertheless, ratification of the 2004 Protocols mean that in the
highly unlikely event of an incident, an increased level of
compensation would be available to victims and the period during
which claims can be brought would be extended. The 2004
Protocols, once in force, increase operator liability in the
event of a nuclear incident from the current €140m to a maximum
of €1.2bn over a period of 5 years and extends the period for
which claims can be made from 10 to 30 years.
The Government recognises that in the short term, there is a gap
in the insurance market. Therefore, the government has agreed
initially to provide an indemnity, for a charge, to cover
increased personal injury liabilities for the 10 to 30 year
period. For each individual site, the maximum HMG liability is
between €70m and €160m depending on the site's classification,
operator’s uptake of the indemnity, and whether transit of
nuclear material takes place. The indemnity will be reviewed
annually to ensure that it remains the best value for money
option. In relation to this, I have today laid before Parliament
a Departmental Minute giving notice of the Department incurring
this contingent liability.
Additionally, the Government is also providing an indemnity to
the Nuclear Decommissioning Authority (NDA). The NDA are a
non-departmental public body who are responsible for the
decommissioning of several civil nuclear facilities, and who will
be required to have appropriate cover in place. This creates a
maximum contingent liability of €700m in the first year, rising
to €1.2bn for the government per site over a five year period.
We also intend to build on our well established nuclear
third-party liability regime by seeking accession to the
Convention on Supplementary Compensation for Nuclear Damage (the
“CSC”), by working with the International Atomic Energy Agency
(“IAEA”) as depository for the CSC, and legislating when
parliamentary time allows. Accession to the CSC would expand the
number of countries to which the principles of channelling
liability to the operator, and capping that liability, apply.
This further improves the investment climate for new nuclear in
the UK, without placing any additional burden of liability for
developers or operators. In the event of a nuclear incident in a
country that is party to the CSC, the UK would contribute an
amount to the shared international fund, based on its installed
capacity and UN contributions at the time. Similarly, in the
events of an incident in the UK, we would be able to draw on
these pooled CSC funds.
