back

UNITED KINGDOM

                                                                                  (updated on August. 2006)[1]

1.  ENERGY, ECONOMIC AND ELECTRICITY INFORMATION

1.1.  General Overview

United Kingdom (UK) is an abbreviated form of United Kingdom of Great Britain and Northern Ireland. The UK consists of England, Northern Ireland, Scotland and Wales and lies in north-western Europe, occupying the major portion of the British Isles. The country’s only land boundary is with the Republic of Ireland. The UK is separated from the coast of western Europe by the English Channel to the south and by the North Sea to the east. The northern and western shores are washed by the Atlantic Ocean.

The UK has a temperature climate, rarely marked by extremes of heat or cold. In July the warmest month, mean temperatures range from about 17°C in the south-east to 12°C in the far north. The coldest month is January, when mean temperature ranges from about 5°C in the south-west to 2°C in the north-east. Annual average precipitation in lowland areas ranges from less than 600mm in some sheltered eastern areas to over 900mm in the west. Much higher totals occur in upland areas, where overcast skies and hill fog are frequent, with over 3000 mm of precipitation near the highest peaks in the north-west.

More than 70% of the population of 58.8 millions (1996) is concentrated in cities occupying 10% of the total land area. It has a mean population density of 243.2 persons per square km with an annual growth of 0.3% (1997). The population is highly urbanized, and the United Kingdom is the third most densely populated nation in Europe (after Netherlands and Belgium). The most densely populated part of the United Kingdom is England, with 376 persons per square km; Scotland has a density of 66 per square km; Wales, 141 per square km; and Northern Ireland, 123 per square km. Population in 1998 was 59.1 millions (Table 1) and is expected to grow to 60.3 millions in 2006.

TABLE 1. POPULATION INFORMATION

 Source: World Bank World Development Indicators;  http://www.dti.gov.uk/energy/statistics/source/index.html

1.1.1.  Economic Indicators

The money Gross Domestic Product (GDP) for the United Kingdom, at market prices, in 2005 was £1,211 billion (or $2,131 billion) according to HM Treasury in March 2006-09-06.

TABLE 2. GROSS DOMESTIC PRODUCT (GDP)

Source: World Bank World Development Indicators

1.1.2.  Energy Situation

Extensive coal deposits occur around the eastern and western edges of the Pennines, in South Wales, in the Midlands and in the Scottish Central Lowland. Easily accessible coal seams are, however, largely exhausted. Large reserves of oil and natural gas under the North Sea came into commercial production from 1975 and 1967, respectively, but production of both has been declining since 1999 and 2000, respectively. The UK has been a net importer of natural gas on an annual basis since 2004 and is expected to become a net importer of oil on a sustained annual basis by 2010.

TABLE 3. ESTIMATED ENERGY RESERVES

TABLE 4. ENERGY STATISTICS

Energy consumption by the industrial sector has fallen dramatically since 1970, with a sharp reduction in the use of coal outweighing the increased consumption of gas and electricity. The greatest growth in energy consumption has been in the transport sector mainly due to the high level of transport activity, but electricity accounts for just under 1% of total energy consumption by this sector and is used only for rail transportation. Table 4 shows the basic energy statistics.

Energy Policy

The objectives of the UK Government energy policy were set out in a White Paper entitles "Our energy future" in 2003 and re-affirmed in an Energy Review which reported in July 2006:
To put ourselves on a path to cut the UK`s carbon dioxide emissions - the main contributor to global warming - by some 60% by about 2050 with real progress by 2020
To maintain the reliability of energy supplies
To promote competitive markets in the UK and beyond, helping to raise the rate of sustainable economic growth and to improve our productivity
To ensure that every home is adequately and affordably heated

In pursuit of these policies, the UK Government has privatised almost all the former state-owned energy sector (coal, electricity, gas). The only part of the generating sector remaining in public ownership is Magnox Electric plc, which operates the UK`s older Magnox nuclear power stations.

The Government had no direct operational control over any part of the energy sector, which comprises private companies operating on the basis of their own commercial criteria and judgement. Decisions such as what fuels to use for power generation, their source, and the location of facilities (subject to local planning permissions) are left to those companies.

The gas and electricity industries are overseen by an independent economic regulator appointed by the Secretary of State, the Gas and Electricity Markets Authority (GEMA), whose role is set out in full in the Electricity Act (1989) and the Gas Act (1986). The Authority`s statutory principle objective, which is shared with the Secretary of State, is to protect the interests of consumers, wherever appropriate through effective competition.

To make supply competition work, a major programme of work was needed to build systems, commercial arrangements, trading arrangements, and licences which administer the change of supplier process. Following final agreement on the overall design of the arrangements, end to end testing of the systems commenced at the beginning of 1998 and was completed in all areas by the end of the year. Competition was then rolled out between September 1998 and May 1999, area by area according to the postcodes of the customers involved. All remaining public electricity supply monopolies were abolished in May 1999 and all consumers may now choose their supplier.

In the gas sector, competition first started in the industrial and commercial (non-tariff) market. Domestic competition took longer to develop and was started by the Gas Act 1995. This Act opened up the market by creating three separate licences for Public Gas Transporters who operate the pipelines, shippers who buy gas wholesale from producers and sell it to suppliers who in turn sell it to consumers. The roll-out of domestic competition began in 1996 and was completed in May 1998. By March 2006, 48% of all domestic gas consumers were no longer with British Gas, the former monopoly provider.

The Government remains responsible for establishing the framework of environmental regulation within which the energy sector operates, including permissible levels of emissions and disposal of wastes. But within these broad parameters, it is for companies to decide how best to meet the particular environmental requirements relevant to them.

1.3.  The Electricity System

1.3.1.  Structure of the Electricity Sector

Until 1990, when the institutional reform enacted for England and Wales by the Electricity Act 1989 was put into practice, the United Kingdom's power system had been organised as follows:
England and Wales: power generation and transmission was in the hands of the Central Electricity Generating Board (CEGB) - a power company exerting monopoly rights over these activities, and responsible for supplying the twelve Regional Electricity Companies (RECs) in charge of distribution. The Electricity Council, an intercompany co-ordination agency, was in charge of assessing demand forecasts, investment and financing needs, and representing the industry.
Scotland: the system was supplied by two vertically integrated companies, the South of Scotland Electricity Board (SSEB) and the North of Scotland Hydro-Electric Board (NSHEB).
Northern Ireland: supplied by a vertically integrated monopolistic company, the Northern Ireland Electricity (NIE).

In 1990, all of the electricity supply industry, except for the nuclear generators, was privatised. The more modern nuclear power stations, the AGRs and the PWR, were subsequently privatised in 1996 under the holding company British Energy plc, formed with two subsidiaries, Nuclear Electric Ltd and Scottish Nuclear Ltd. Restructuring in 1998 led to Scottish Nuclear being renamed as British Energy Generation (UK) Ltd and Nuclear Electric as British Energy Generation Ltd. The older Magnox stations remain in the public sector and are owned by the Nuclear Decommissioning Authority (NDA) and currently managed and by Magnox Electric Ltd. and British Nuclear Group Sellafield Ltd.

There are fourteen distribution networks (owned by seven businesses) companies and one transmission company, the National Grid Company (NGC). NGC also manages the despatch and administers the market in wholesale power.

The retailing or supply of electricity in Great Britain, formerly a monopoly of the local distribution company for all but the largest consumers, is now completely open to competition and largely dominated by six vertically integrated generation and supply companies. In the domestic electricity supply market, by March 2006, 56% of direct debit, 41% of standard credit and 44% of prepayment meter customers were no longer with their former monopoly supplier.

Regulation of electricity markets in England, Wales and Scotland is the responsibility of the Gas and Electricity Markets Authority (GEMA), who are bound by staturory duties found in the Electricity Act (1989). Members of the Authority are appointed by the Secretary of State. The Authority`s principle objective is to protect the interest of consumers.

In Northern Ireland, generation and distribution were privatised independently. However, unlike the English and Welsh case, no new generating companies were established, and the power plants were sold to already existing companies (Tractebel from Belgium and British Gas).

The wholesale electricity market in England and Wales was reformed on 27 March 2001, when the Electricity Pool was replaced by New Electricity Trading Arrangements (NETA). This arrangement was extended to Scotland on 1 April 2005 with the introduction of the British Electricity Transmission and Trading Arrangements (BETTA).

The key features of BETTA are:

1. a forward market where generators are be able to contract with suppliers and large customers for the physical delivery of electricity. Such contracts can be struck close to the time of delivery or a year or more ahead;
2. screen-based short-term power exchanges to enable participants to refine their contract positions close to real time in the light of current information (e.g. on the weather). Five power exchanges have either set up or are in the process of being set up;
3. a balancing mechanism operating from 3.5 hours ahead of real time up to real time, managed by the National Grid Company (NGC). As electricity cannot be stored, NGC needs to manage the grid system on a second-by-second basis and the balancing mechanism is the facility under the new arrangements, which allows it to do this. However, the vast majority of trading takes place in the forward markets rather than in the Balancing Mechanism;
4. associated derivatives markets to enable market participants to manage commercial risks; and
5. a settlement process to deal with the financial settlement of balancing mechanism trades and to deal with those whose generation or consumption of electricity is out of balance with their contracted position.

1.3.2.  Decision Making Process

Responsibility for formulating energy policy and for most of the measures to implement it rest with the central government. Within government, lead responsibility on energy matters outside Northern Ireland rested until 12th April 1992, with the Secretary of State for Energy. On 13th April 1992, the Secretary of State's responsibilities were transferred to the Secretary of State for Trade and Industry, except for energy efficiency, which was transferred to the Secretary of State for the Environment. Northern Ireland energy matters are the responsibility of the Secretary of State for Northern Ireland. The Secretary of State for Scotland is responsible for the electricity industry in Scotland. Because of the cross cutting nature of the issues many Ministers are involved particularly on policy for the efficient use of energy and for safety and the environment. Co-ordination between Ministers and Departments is achieved through the Cabinet, Ministerial and official committees and interdepartmental consultation.

The Secretary of State appoints the Members of the Gas and Electricity Markets Authority, which sets the strategy for the Office of Gas and Electricity Markets (Ofgem). The relevant Secretary of State and the Authority have specific duties within electricity markets. Those of the Secretary of State include appointing Members to the Authority and issuing exemptions from holding a licence. The Authority issues, enforces and modifies licences, (Participation in the GB electricity sector is by licence unless covered by an exemption from holding a licence).

The building of a new power station with a capacity of over 50 MW requires the consent of the relevant Secretary of State (consent powers are devolved in the case of plant in Scotland and Northern Ireland). Environmental assessment is mandatory in most cases and is normally required in all other cases.

1.3.3.  Main Indicators

As at 2004, energy industries contributed 3.2% of UK GDP; and accounted for 5.8% of total investment and 38.1% of industrial investment; and employed (directly or indirectly) nearly half a million people. Total primary demand in 2004 was 247.3 Mtoe, mainly in petroleum and natural gas; 65% of primary demand went to final energy consumption (173.5 Mtoe), divided roughly equally between transport, domestic and other (industrial services and agricultural) use, Electricity accounted for about 17% of final energy consumption.

The proportion of electricity generation is fuelled by gas expanded considerably during the 1990s, but has more recently been reducing due to the cost advantages of coal as the UK gas price reflects market tightness during transition to net import.

TABLE 5. ELECTRICITY PRODUCTION AND INSTALLED CAPACITY

 Source: http://www.dti.gov.uk/energy/statistics/source/index.html

TABLE 6. ENERGY RELATED RATIOS

2.  NUCLEAR POWER SITUATION

2.1.  Historical Development and current nuclear power organizational structure1

2.1.1.  Overview

In 1954 the Atomic Energy Authority Act established the United Kingdom Atomic Energy Authority (UKAEA) with responsibility for the UK nuclear power programme. The programme was to concentrate on the development of gas cooled reactors. The world's first industrial scale nuclear power station to demonstrate the commercial potential of generating electricity through nuclear fission, at Calder Hall in Cumbria, was commissioned by the UKAEA in 1956. Calder Hall was soon followed by a station of similar design, Chapelcross in Scotland; both these stations generated electricity for nearly 50 years before closing in 2003 and 2004 respectivly.

Calder Hall and Chapelcross were Magnox prototypes, and nine more full-scale Magnox power stations were subsequently commissioned in the UK between 1962 and 1971. The Magnox stations were so-called from the magnesium alloy used to make the fuel can which contains the natural uranium fuel elements. The reactors use CO2 as coolant. These stations are now owned by the Nuclear Decommissioning Authority. Four are still in operation, while seven are in various stages of being defuelled or decommissioned.

In 1964, it was decided that the UK-developed advanced gas cooled reactor, the AGR, should succeed the Magnox as the principal source of nuclear power in the UK. Seven AGR stations, making use of enriched uranium fuel, were commissioned between 1976 and 1988 and these are now owned and operated by British Energy.

As part of the reorganization of the UKAEA under the Atomic Energy Authority Act in 1971, BNFL was set up as a private limited company and subsequently transformed into a public limited company. The fuel cycle operations previously undertaken by the UKAEA were transferred to BNFL. BNFL provides the full range of nuclear fuel cycle services to the UK and international markets. In 1994 BNFL sheared its first irradiated fuel in the Thermal Oxide Reprocessing Plant (Thorp), constructed to reprocess domestic and overseas spent oxide fuel.

In 1978 the Government had decided that for future nuclear power station design it would be appropriate to pursue the Pressurized Water Reactor (PWR) option, the most widely used design outside the UK. Subsequently the site at Sizewell in Suffolk was chosen and construction began in 1988 after a lengthy public inquiry. This station, Sizewell B, first supplied electricity to the national grid in February 1995.

UK Nirex Ltd was incorporated in 1985. Its development of a deep disposal facility for intermediate and long-lived low level wastes ceased in 1997. Nirex was made independent of the nuclear industry in 2005 to boost transparency and accountability in the long-term management of radioactive waste. The company is jointly owned by the Department for Environment, Food and Rural Affairs (DEFRA) and the Department of Trade and Industry (DTI). Under these ownership arrangement, Nirex remains independent of and separate from the NDA, with funding coming through the NDA via a funding agreement.

In its 1988 White Paper "Privatising Electricity", the Government announced its intention to privatize the UK electricity supply industry. However, it later removed the nuclear stations from its privatization plans for economic reasons and also because of concerns about the operational performance of AGRs at that time and uncertainties over the financing of any new PWRs. The Government did however recognize that there were advantages to be gained from the continued operation of existing nuclear power stations, in their contribution to security of supply and protection of the environment. When announcing the Government decision not to privatize nuclear power, the Secretary of State for Energy also announced that there was to be a moratorium on public sector construction of new nuclear stations (the Sizewell B PWR was already being built) until the Government conducted a review of the prospects for nuclear power.

In July 2002, the Government published its White Paper, `Managing the Nuclear Legacy: A strategy for Action'. It set out the Government's proposals for improving the way the clean up of Britain's nuclear sites and facilities is managed. In particular, the White Paper recommended that a new body, accountable to Government, should be established with a specific remit for ensuring the safe, responsible and cost effective clean-up of the UK`s nuclear legacy.

The Nuclear Decommissioning Authority (NDA) came into existence as an executive non-departmental public body in July 2004 when the Energy Act received Royal Assent. The Act gave the NDA its legal status and the powers and provided for the designations and transfer schemes that enabled the transfer of assets and liabilities formerly owned by BNFL to the NDA on 1 April 2005. The NDA is responsible for providing the first ever UK-wide strategic focus on decommissioning and cleaning up nuclear sites.

The NDA’s Strategy, which was published in April 2006 following public consultation and Government approval, sets out the challenges faced by the Authority and the proposals for meeting those challenges. The NDA also publishes an Annual Plan, which describes the work it intends to carry out to deliver its strategy each year, and an Annual Report and Accounts.

The NDA currently has designated responsibility for 19 nuclear sites across the UK, which are managed and operated under contract by a Site Licensee. The NDA will introduce competition for the management and operation of these sites to encourage innovation, to improve performance and to deliver best value to tax payers. The first competition, which got underway in 2006, is for the management and operation of the Low Level Waste (LLW) Repository near Drigg.

The table below shows the NDA sites, their current parent company and site licensee.

2.1.2.  Organizational Chart

A simplified chart of main operations of the United Kingdom nuclear power programme is shown in Figure 1.

2.2.  Nuclear Power Plants: Status and Operations

Thirty three nuclear units are in operation in the United Kingdom, representing a total capacity of 11.7 GW(e) and supplying almost 25% of the electricity generated in the country. Table 7 shows the status of the nuclear power plants in the UK, Sizewell B, was connected to the grid in February 1995 and achieved full load in September 1995.

Sizewell B is a modern PWR, built by the UK industry under a licence from the American manufacturer Westinghouse, which incorporates a number of enhanced safety features to meet more stringent safety standards. The unit was completed on schedule and within the provisional budget. All the other nuclear units in operation in the UK are gas-cooled reactors of Magnox and advanced gas cooled (AGR) types. Substantial improvements in the performance of the AGRs have been attained during recent years. The Prototype Fast Breeder at Dounreay, which was commissioned in 1976, is currently under-going decommissioning.

NII has accepted that the Periodic Safety Reviews of the AGR have shown that all the stations can be expected to operate safely for at least a further 10 years, subject to satisfactory outcomes from routine inspection activities. The NII's assessment of the Periodic Safety Review Sizewell B is scheduled for completion in.

All of the Magnox power stations are scheduled to cease generating electricity by 2010.

TABLE 7. STATUS OF NUCLEAR POWER PLANTS

On 1 April 2005 the Nuclear Decommissioning Authority (NDA) was established and took on the ownership of the UK`s Magnox reactors, those still operational as well as those undergoing defuelling/decommissioning. The operating reactors are run by British Nuclear Group under contract to the NDA.

Notwithstanding British Energy's decision, the Government has concluded that it is reasonable to assume that the existing technology will not be lost and that the option to build new nuclear power stations will be available for some time to come, albeit with first-of-a-kind costs attached. Through Sizewell B, which is a modern PWR reactor built only recently in line with international standards, British Energy has access to the latest technology in this area. The company has made it clear that it will be able to keep up with the latest developments, both through operating its new station and by taking on overseas consultancy projects. In November 1995, the Atomic Energy Authority Act 1995 became law, enabling the Authority to privatize its commercial activities, which have been known in recent years as AEA Technology.

2.3.  Supply of NPPs

Many companies provide equipment, components and services to the UK`s operating reactors, as well as fuel supply, fuel cycle services including reprocessing, radioactive waste management and engineering services.

2.4.  Operation of NPPs

The UK’s AGRs and single PWR are owned and operated by the holding company British Energy through its subsidiaries . The Magnox stations are owned by the Nuclear Decommissioning Authority and those that are still operational are managed and operated under contract by British Nuclear Group Sellafield Ltd (part of the BNFL Group of companies). Four of the Magnox stations are still generating; two are due to cease generation in December 2006 and seven are at various stages of defuelling and decommissioning.

2.5.  Fuel Cycle and Waste Management

Apart from raw uranium mining, the UK has an independent nuclear fuel cycle capability. UK - based companies (in particular, BNFL) offer a full range of the nuclear fuel cycle services - from uranium conversion enrichment and fuel manufacture through to spent fuel reprocessing, transport, waste management and decommissioning. These services are provided to the UK and international markets. A joint strategy review conducted in 2003 by BNFL and the UK government concluded that BNFL`s business would be managed to deliver value and to control risks to the UK taxpayer. In line with this strategy a sales process was conducted for the Westinghouse business, resulting in a sales agreement with the Toshiba Corporation in February 2006. This sale is currently being finalised. The UK Government has also given its approval in March 2006 for the sale of British Nuclear Group (the specialist site management, clean-up and decommissioning business).

Fuel enrichment in the UK is carried out at Capenhurst near Chester by Urenco Capenhurst Limited, a wholly owned subsidiary of Urenco Ltd., the holding company for the Urenco Group. The Urenco Group is the joint Anglo-Dutch-German organization which operates uranium enrichment plants in all three countries using centrifuge technology.

Westinghouse runs the Springfield site under contract to the NDA, providing nuclear fuel chemical and mechanical fuel fabrication for the UK’s AGR’s and Magnox reactors, as well as uranium hexafluoride conversion services.

Spent fuel from Magnox and AGRs and overseas LWR is reprocessed at the two reprocessing plants at Sellafield.. The Thorp plant began operations in March 1994 and has sheared and dissolved around 6000 tonnes of spent fuel. The Magnox reprocessing plant has operated for over 40 years and is scheduled to shut down in 2012/13 following the closure of the last UK Magnox reactor.

The Sellafield Mox plant (SMP) is still being commissioned and has started manufacturing Mox fuel for overseas reprocessing customers using a blend of plutonium (recovered from the reprocessing of spent fuel) and uranium. Several consignments of fuel have been delivered to customers.

The Drigg Facility in West Cumbria is the only site in the UK licensed for the disposal of Low Level Radioactive Waste (LLW). LLW is transported there by rail or road in purpose designed and licensed containers for disposal in the engineered vaults at Drigg.

The UK Government has welcomed the Committee on Radioactive Waste Management's (CoRWM) report in July 2006. Which recommends deep geological disposal for higher-activity wastes. The Government will respond to CoRWM`s recommendations as soon as practicable after Parliament, the Scottish Parliament and the Welsh Assembly reconvene after their respective recess.

Nirex continues to exist as an organisation, doing work on standards for the conditioning and packaging of radioactive waste for long-term management.

Nirex was taken into joint DEFRA/DTI ownership from 1st April 2005. The company's long-term future will be decided when the UK Government responds to the CoRWM report.

Nuclear sites are licensed by the Nuclear Installations Inspectorate (NII), the regulator responsible for overseeing their safe operation. Disposals of radioactive wastes may only be made under authorizations granted by the Environment Agency (or in Scotland the Scottish Environment Protection Agency) but under operational agreements between them and the NII, the latter oversees waste operations on licensed sites.

2.6.  Research and Development

Nuclear accounted for some 47% of the DTI's Energy R&D expenditure in 1995-96 (45% in 1994-95). This expenditure went on research into decommissioning and radioactive waste management services, safety and health, fusion and safeguards commissioned with the UK Atomic Energy Authority (a public corporation) and the Joint European Torus (JET) project run by Euratom. British Energy and BNFL are directly responsible for their own research expenditure.

2.7.  International Co-operation and Initiatives

The United Kingdom is a member of the European Union (EU), the OECD/NEA and the IAEA as well as other bilateral and multilateral organizations. The United Kingdom Government supports EU programmes the field of nuclear safety and nuclear waste management and participates in many OECD/NEA and IAEA projects.

3.  NATIONAL LAWS AND REGULATIONS

3.1.  Safety Authority and the Licensing Process (HSE)

The safety of UK nuclear installations, and the protection of employees and the public from the potential hazards caused by them, is governed principally by provisions in the Nuclear Installations Act 1965, the Health and Safety at Work etc. Act 1974, the Ionising Radiation Regulations 1999 made under it and the Radioactive Substances Act 1993 (RSA 93). No site may be used for the construction or operation of a commercial nuclear installation unless appropriate approval or planning permission has been given and a nuclear site licence is granted by the Health and Safety Executive (HSE). The Nuclear Installations Inspectorate (NII) is that part of the HSE with delegated responsibility for administering the licensing function.

The Energy Act 2004 established a new Non-Departmental Public body, the Nuclear Decommissioning Authority (NDA), which took over the responsibility for decommissioning of designated civil nuclear legacy sites. The creation of the NDA has not changed the regulatory framework outlined above.

The NII will not grant a nuclear site licence unless satisfied that a prospective operator has the capacity to meet all their stringent safety requirements from design through to decommissioning, in adherence to the licence conditions attached to the site licence. So as to demonstrate to the NII that safety will be properly controlled at all stages of the lifecycle of plant' on licensed sites, the operator is required to produce a comprehensive written "safety case" for each plant. The safety case must be continually revised and updated throughout the plant's operation, to take account of any changes in its operating conditions, and a new safety case be similarly established and maintained for decommissioning.

Ultimate responsibility for the safety of a nuclear installation is legally the responsibility of the operating company. They must execute all licence requirements to the NII's satisfaction. The principle is the same whether the operating company is in the public or private sector. The NII carefully monitors the performance of nuclear installations against exacting standards and conditions. Should there be any doubt about a licensee's continued ability to meet its obligations, the Inspectorate has extensive powers. It can, for example, include additional licence conditions at any time, direct the cessation of plant operation, and ultimately direct that it be shut down altogether. An operating company may surrender a licence (or it may be revoked by the NII), but still retains responsibility for safety of the site until either a new licence for the site is issued or the HSE is satisfied that there ceases to be a danger from ionising radiation from the site.

RSA 93 as amended by the Environment Act 1995 makes the Environment Agency (EA) the regulatory body for authorisation for the disposal of radioactive waste in respect of nuclear licensed sites in England and Wales and the Scottish Environment Protection Agency (SEPA) the regulatory body for Scotland. As part of the Basic Safety Standards Directive 96/29/Euratom a number of Environment Agencies existing administrative practices under RSA 93 were made legally binding obligations.

There is close liaison between NII, the Environment Agency and the Scottish Environment Protection Agency under the terms of Memoranda of Understanding, which set out the lead roles of the organizations and requirements for liaison and consultation.

As far as security regulation is concerned, nuclear power stations and associated laboratories are regulated separately under the Nuclear Generating Stations (Security) Regulations 1996.

The Nuclear Industries Security Regulations 2003, provides a single, clarified and updated legislative basis for security regulation of those holding nuclear material and sensitive nuclear information, and introduced direct regulation of those transporting nuclear material.

3.2.  Main National Laws and Regulations in Nuclear Power

GENERAL LEGISLATION

• Anti-Terrorism, Crime and Security Act 2001
• Nuclear Generating Stations (Security) Regulations 1996
• Atomic Energy Authority Act 1995 (Chapter 37).
• Atomic Energy Act 1946 Ch 80.
• Atomic Energy Authority Act 1954 Ch 32.
• Nuclear Installations (Amendment) Act 1965 Ch 6.
• Nuclear Installations Act 1965 Ch 57.
• Nuclear Installations Act 1969 Ch 18.
• Radiological Protection Act 1970 Ch 46.
• Atomic Energy Authority Act 1971 Ch 11.
• Health and Safety at Work etc. Act 1974 Ch 7.
• Nuclear Industry (Finance) Act 1977 Ch 7.
• Atomic Energy (Miscellaneous Provisions) Act 1981 Ch 48.
• Criminal Justice Act 1982.
• Energy Act 1983 Ch 25.
• The Atomic Energy Authority Act 1986 Ch 3.
• Atomic Energy Act 1988 Ch 7.
• Electricity Act 1989.
• Criminal Law Act 1989.
• Environmental Protection Act 1990 Ch 43.
• Radioactive Material (Road Transport) Act 1991 Ch 27.
• Atomic Weapons Establishment Act 1991 Ch 46.
• Radioactive Substance Act 1993 Ch 12.
• Nuclear Installations (Dangerous Occurrences) Regulations 1965 (SI 1965/1824).
• The Nuclear Installations (Insurance Certificate) (Amendment) Regulations 1969 SI 1969/64).
• The Nuclear Installations Regulations 1971 (SI 1971/1381).
• The Nuclear Installations Act 1965 etc. (Repeals and Modifications) Regulations 1974 (SI 1974/2056).
• Nuclear Installations (Expected Matter) Regulations 1978 (SI 1978/1779).
• Nuclear Installations (Prescribed Sites) Regulations 1983 (SI 1983/919).
• The Nuclear Installations Act 1965 (Repeal and Modifications) Regulations 1990(SI 1990/1918)
• The Fire Certificate (Special Premises) Regulations 1976 (SI 1976/2003).
• The Notification of Installations Handling Hazardous Substances Regulations 1982 (SI 1982/1357).
• Air Navigation (Restriction of Flying) (Nuclear Installations) Regulations 1988 (SI 1988/1138).
• Environmental Protection (Prescribed Processes and Substances) (Amendment) Regulations 1992 (SI 1991/614).
• THESE are all replaced by the RAM Road and RAM Rail regulations (1995) [need the precise reference)Control of Pollution (Radioactive Waste) Regulations 1976 (SI 1976/959).
• The Control of Pollution (Radioactive Waste) Regulations 1989 (SI 1989/1158). Radioactive Substances (Records of Convictions) Regulations 1992 (SI 1992/1685).
• The Public Information for Radioactive Emergencies Regulations 1992 (SI 1992/2997).
• The Ionising Radiations Regulations 1999 (SI 1999/3232). The Nuclear Material (Offences) Act 1983 (Commencement) Order 1991 (SI 1991/1716).
• Extradition (Protection of Nuclear Material) Order 1991 (SI 1991/1720). The Nuclear Installations (Application of Security Provisions) Order 1993 (SI 1993/687).
• Nuclear Reactors (Environmental Impact Assessment For Decommissioning) Regulations 1999 (SI 1999/2892).
• The Exports of Goods (Control) Order 1992 (SI 1992/3092).
• The Radioactive Substances (Prepared Uranium and Thorium Compounds) Exemption Order 1962 (SI 1962/2711).
T
• he Atomic Energy (Mutual Assistance Convention) Order 1990 (SI 1990/235). Environmental Protection Act 1990 (Commencement No 3) Order 1990 (SI 1990/2565 (Ch 67)).
• The Radioactive Substance (Substances of Low Activity) Exemption (Amendment) Order 1992 (SI 1992/647).
• The Radioactive Substances (Uranium and Thorium) Exemption (Scotland) Order 1962 (SI 1962/2766).
• Radioactive Substance (Testing Instruments) Exemption Order 1985 (SI 1985/1049).
• The Radioactive Substances (Substances of Low Activity) Exemption Order 1986 (SI 1986/1002).
• The Radioactive Substances (Waste Cloud Sources) Exemption Order 1963 (SI 1963/1831).
• The Radioactive Substances (Uranium and Thorium) Exemption Order 1962 (SI 1962/2710).
• The Environment Protection Act 1990 (Commencement No 7) Order 1991 (SI 1991/1042).
• The Radioactive Substances (Substances of Low Activity) Exemption (Amendment) Order 1992 (SI 1992/647).
• The National Radiological Protection Board (Extension of Functions) Order 1974 (SI 1974/1230).

4.  CURRENT ISSUES AND DEVELOPMENTS ON NUCLEAR POWER

4.1.  Energy Policy

In July 2006 the Energy Review was published, which examined the UK`s progress against medium and long term 2003 Energy White Paper goals, and considers options for further steps to achieve them.

There are two main challenges that the UK is currently facing, energy security and climate change. Both will require hard decisions nationally and internationally, long term sustainable soloutions that the Government set up the review last year. The findings of the review underlines the fact that there is no simple, single soloution to the energy challenges that the UK will face, but a balanced approach, driven by technological advances and increased efficiency, will be needed.

The main findings of the review are that the UK must significantly increase investment in, and support renewable energy so that it plays a larger role in our energy needs. The UK must also put greater emphasis on the efficient use of energy, which will also help to cut carbon emissions.

The mix of energy supply in the UK has served the country for many years, and is essential for the future too. Cleaner coal, oil and gas, more renewable sources of energy, but there is also the need to look at nuclear power. Nuclear power currently provides almost 20 per cent of the country`s electricity needs, but most of these power stations are scheduled to close over the coming two decades, as well as a good deal of coal plants. In the near term, some of this capacity will be replaced by renewables, some will be filled by gas, if nothing is done in the near future, the reality is that there will be an increase in reliance on gas. The Government believes that nuclear has a role to play in the UK, not only by reducing emissions but also to maintain the diversity of our electricity generation mix. Transport counts for 30 per cent of the total UK energy use, and around a quarter of carbon emissions. The review includes a number of measures. For example, doubling the use of biofuel, could save another 1 million tones of carbon a year by 2015, equivalent to taking a million cars off the roads.

Full implementation of the proposals and further measures set out in the report can be found on the following website http://www.dti.gov.uk/energy/review.

4.2.  Privatisation and deregulation

The electricity generation industry is now largely dominated by six vertically integrated companies, each owners of a mixed (to a greater or lesser extent) generating portfolio.

Responding to this, British Energy (BE) is seeking to grow its supply business and broaden its customer base and has proposed to acquire the retail electricity and gas supply business of SWALEC plc, a subsidiary of Hyder. The Secretary of State for Trade and Industry announced on 23 September 1999 that, having received satisfactory assurances, he had decided not to refer the proposed acquisition to the competition Commission.7

REFERENCES

Appendix 1

INTERNATIONAL, MULTILATERAL AND BILATERAl AGREEMENTS

Appendix 2

DIRECTORY OF THE MAIN ORGANIZATIONS, INSTITUTIONS AND COMPANIES INVOLVED IN NUCLEAR POWER RELATED ACTIVITIES

_______________________________________