Magnox merger deadline agreed
Monday 13 January 1997
Ministers aim to transfer responsibility for Magnox Electric, created last April in the restructuring of the nuclear industry, to BNFL, which does much of the decommissioning work at its Sellafield complex. The talks became deadlocked because of BNFL's unhappiness at having to take over part of Magnox's pounds 8.9bn decommissioning costs.
However, in a private exchange of letters between Lord Fraser, energy minister, Mark Baker, Magnox chairman, and John Taylor, BNFL chief executive, the three sides agreed to work towards securing a deal by the end of next month. Letters of intent to seal the agreement are due to be signed in March, with the merger completed in April 1998.
Sources suggested that though the timetable had been agreed, there was much work to be done on how to bridge the huge funding gap. Of the pounds 8.9bn estimate for decommissioning all nine of Magnox's reactors, some pounds 1.3bn still has to be found. The Government last year agreed to guarantee pounds 3.7bn of the costs, while Magnox has set aside cash and future revenue streams worth pounds 3.9bn.
Though BNFL is state-owned it in effect runs as a private business and has made clear to ministers it would refuse to take on pounds 1.3bn of liabilities without Treasury help. BNFL has set its sights on commercial reprocessing and waste management work overseas.
Simon Calder looks at communities fighting back against the poachers
Guide dog mauled while helping owner deliver Christmas cards
The poorest pay the price for austerity: Workers face biggest fall in living standards since Victorian era
Nelson Mandela’s complex bond with Britain
Deadly ice storm pushes up US east coast as temperatures drop to -29C
10 stone five-year-old taken into care
- 1 A forgotten episode in Russian history leaves links with the Philippines
- 2 Turning up the voice of America
- 3 The man who made Femen: New film outs Victor Svyatski as the mastermind behind the protest group and its breast-baring stunts
- 4 Mass murder in the Middle East is funded by our friends the Saudis
- 5 Japan cracks down on leaks after scandal of Fukushima nuclear power plant
- < Previous
- Next >
iJobs Money & Business
£Attractive Package: Citifocus: Excellent, opportunities exist for high calibr...
£Attractive Package: Citifocus: Key purpose of the role will be to act as Fixe...
£42000 - £46500 per annum + Benefits: Pro-Recruitment Group: Big 4 Opportunity...
£300 - £350 per day: Harrington Starr: SQL Server MI Developer needed for Euro...