Site Licence Companies to merge

NDA new 200Magnox Ltd and RSRL are being merged into a single Site Licence Company (SLC) as part of the changes being introduced by the new Parent Body Organisation, the Cavendish Fluor Partnership (CFP).

The merger of Magnox Ltd and Research Sites Restoration Ltd (RSRL) is expected to be complete later this Spring. The 12 sites will unite under a single leadership team, with a simplified structure and a range of shared management systems.

Meanwhile, work continues on the ‘consolidation’ phase of the new contract, which is expected to take around 12 months and meet a number of important requirements under the terms of the contract.

The proposals submitted by CFP were based on information collated early in 2013, reflecting the situation at Magnox/RSRL sites at the time but, as with any major programme of work, project and technological developments have since taken place. The consolidation phase of approximately 12 months enables CFP to understand these developments and revise its proposals appropriately, working closely with the SLCs and NDA to reach agreement.

NDA Chief Financial Officer, David Batters, said:

“As part of the contract won by CFP, a period of consolidation and reconciliation was built into the process for the winning bidder to consider the financial bid they made in 2013 and to test that against the situation they actually inherited in September 2014. The new plan emerging from that process is not due to be presented to the NDA until later this year, but we remain confident that the final plan agreed with CFP at that time will see substantial savings and represent excellent value for money to the taxpayer.”

The consolidation process is a key principle of the contract and was fully anticipated to take account of major developments. For example, the decision to extend generation at Wylfa into 2015 brings additional operating costs as well as significant extra income for the NDA, while at Bradwell and Trawsfynydd the ambitious programmes to accelerate interim closure dates have encountered some delays but remain on course to reduce original forecasts by more than 10 years.

A further activity is the introduction of CFP’s technical innovations and efficiencies, which include restructuring the organisation, and understanding the detail of how all changes can be implemented at each site.

Revisions to on-site programmes will be incorporated before a final budget is agreed toward the end of this calendar year; an overall assessment of levels of change across the full 14-year contract period is still to be determined.

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