The fund is structured so that its assets are ring-fenced and can only be used for the purpose of making payments towards discharging relevant nuclear liabilities
The Nuclear Trust
The Nuclear Trust was established in 1996 as a Scottish public trust with its main purpose being "to protect and preserve for the benefit of the nation the environment of the United Kingdom" through Nuclear Liabilities Fund Limited, a company that holds and invests assets "for the purpose of making payments towards discharging nuclear liabilities".
Any surplus funds must be used to discharge the national debt.
Trust assets are ring-fenced
Trust assets can only be used for the purposes set out in the trust deed. In this way, the fund is protected from creditors of the operator of the nuclear power stations and the fund cannot be used as a source of general government spending.
Nuclear Liabilities Fund Limited
The trustees of the Nuclear Trust own all of the issued ordinary shares in Nuclear Liabilities Fund Limited, which is the company that was established for the purpose of receiving and holding monies, investments and other assets that form the 'fund' for meeting the costs of the relevant nuclear liabilities.
The Secretary of State for Department of Energy Security and Net Zero (DESNZ) owns one 'A' share and EDF Energy Nuclear Generation Limited (EDF Energy) one 'B' share in the company. The holders of the A and B shares have certain rights, such as the right to appoint directors.
The trustees are also appointed as the directors of Nuclear Liabilities Fund Limited.
Nuclear Liabilities Fund Limited enters into all contracts relating to investments, administration and nuclear liabilities funding.
The primary purpose of Nuclear Liabilities Fund Limited (NLF) is to receive and hold monies, investments and other assets, in order to secure funding for discharging certain liabilities related to the decommissioning of eight nuclear power stations currently operated by EDF Energy Nuclear Generation Limited (‘EDF Energy’).