Brussels, 01/12/2004 (Agence Europe) - The European Commission has opened a formal investigation on the creation by the United Kingdom of the Nuclear Decommissioning Agency (NDA). This public body will, from 1 April 2005, be responsible for managing most of the nuclear liabilities of the public sector in the country. It also comes from the split into two parts of British Nuclear Fuels Limited (BNFL) and the transfer of the liabilities from the sites of the British Atomic Energy Agency (AEA).
The European Commission plans to verify whether the division of BNFL gives an unfair advantage to the entity that continues normal commercial activity. Part of BNFL, which groups fifteen sites including the nuclear power plants of Sellafield Mox and Magnox, will be transferred to NDA and the latter will also take on the financial burden of the liabilities related to this. The other part of BNFL, which is mainly formed by its subsidiary, Westinghouse, will on the other hand continue its commercial activities without having the burden of the nuclear liabilities that "it should normally have met under the 'polluter pays' principle", the Commission notes. Although it is sizeable, this advantage cannot be assessed at the present time, Jonathan Todd, the spokesman for the European Competition Commissioner said on Wednesday.
According to Friends of the Earth Europe, decommissioning obligations weighing on BNFL, which will be finally exempted, represent around EUR 60 billion. At this stage, the Commission considers this is a constituent advantage of State aid. The Commission, however, considers that, if the positive contribution by the new British authority to the Community objectives outweigh the disadvantages for competition, it may authorise its creation. Mr Todd has insisted on the novelty and the complexity of the matter which requires an indepth investigation in order to take into account all the positive and negative aspects of the aid. The spokesman mainly cited environmental aspects. These elements will allow an assessment to be made of the impact that the creation of NDA will have on competition and in relation to the aims of the Euratom Treaty, the Commission adds.
British Energy Minister Mike O'Brien pointed out: "We believe that NDA is compatible with the Community State aid regime" but "we understand the Commission's wish to investigate". Despite the duration of such an investigation, which could last from 9 to 12 months, the NDA will begin its activities from 1 April 2005 "by using existing financial resources", Mr O'Brien stressed in his press release.
Friends of the Earth believes that a Commission approach on a case-by-case basis is "not sufficient" and that, on the contrary, one must move toward European rules concerning nuclear decommissioning obligations in the European energy market. Failing this, industrialists in the sector may sell electricity at prices below costs, which is a great disadvantage to other energy producers, mainly renewable energies, the environmental organisation adds. It went on to stress: "nuclear companies must balance their costs with their resources, not with our taxes".