The evolution of NLF from 1996 to 2022
British Energy is privatised and the Nuclear Trust and Nuclear Generation Decommissioning Fund Limited are established to hold a segregated fund that will meet certain costs of decommissioning 8 nuclear power stations. The fund receives an endowment of £0.2bn. It is intended that all nuclear liabilities will be met by the fund and by British Energy
Nuclear Generation Decommissioning Fund is renamed Nuclear Liabilities Fund Limited (NLF)
Following financial difficulties, British Energy is restructured with approved state aid. The government assumes British Energy's 'contracted liabilities' under historic spent fuel contracts. NLF takes on other 'uncontracted' fuel-related liabilities as well as the decommissioning liabilities as set out in the Nuclear Liabilities Funding Agreement. The government agrees to fund NLF to the extent liabilities exceed the assets of the fund. NLF receives £0.3bn of convertible bonds in the restructured British Energy and ongoing contributions from the company, including a ‘cash sweep’ payment with the right for NLF to convert this into 65% of British Energy’s shares
UK government directs NLF to convert 29% of its 'cash sweep' rights into British Energy shares. Sale of these shares raises £2.3bn for the NLF
NLF converts and sells its remaining stake in British Energy to EDF Energy for £4.4bn.
NLF, BEIS and HM Treasury agree new funding arrangements for NLF with the aim of ensuring that the fund will be sufficient to meet projected liabilities. NLF receives a capital injection of £5.1bn, primarily driven by an increase in defueling costs.
The Nuclear Liabilities Funding Agreement is amended and restated and new stakeholder collaboration arrangements come into effect. BEIS confirms that responsibility for decommissioning the AGR stations will be transferred to the Nuclear Decommissioning Authority, shortly after the defueling of each station is completed by EDF Energy
EDF Energy ceased power generation at Dungeness B
EDF Energy ceased power generation at Hunterston B
NLF receives a capital injection of £5.6bn under the funding agreement, primarily driven by changes to Corporation Tax Rates
Fund assets are valued at c£20.4bn
EDF Energy ceased power generation at Hinkley Point B
The EDF Energy website contains more information about decommissioning at Dungeness B, Hunterston B and Hinkley Point B including defueling work that is funded by NLF.
How we are funded
The fund received an initial endowment of £260m. Further cash injections have been provided by the UK government to ensure the sufficiency of the fund and EDF Energy is required to make ongoing contributionsFind out more
Download our annual reports belowFind out more
How we invest
The fund value is approximately £20.4bn at March 2022Find out more