Taxpayer to Foot Bill for Nuclear Accidents After Private Firms Opt Out

The British taxpayer will cover insurance claims for serious accidents or commercial failures above £140 million per year for the new privatised nuclear company, British Energy. This decision comes after private firms operating the Atomic Weapons Establishment at Aldermaston, such as Hunting-Brae, the defence consortium, were unable to find private insurers to take on the risk of nuclear and chemical accidents. As a result, the government will pick up the bill, a move that Labour MP Llew Smith has termed "monstrous".

Key Takeaways:

• The taxpayer will cover insurance claims for serious accidents or commercial failures above £140 million per year for British Energy.
• Private firms operating the Atomic Weapons Establishment at Aldermaston were unable to find private insurers to take on the risk of nuclear and chemical accidents.
• The government will extend the existing "all risks" insurance cover for non-nuclear areas at the expense of the taxpayer to March 2000.
• No private insurance companies were willing to take on the risk of nuclear risk production, including at the Atomic Weapons Establishment at Aldermaston.
• The decision comes after Hunting-Brae, the defence consortium, was given two years to find private insurers to take on the risk previously held by the Government.
• Private firms operating at Aldermaston have replaced their unlimited liability for environmental pollution, gas explosions, and contamination with a maximum payment of £10 million per incident, capped at £100 million per year.

Statistics:

• £140 million: the maximum amount that private firms will insure against nuclear risk production.
• £10 million: the maximum payment per incident for environmental pollution, gas explosions, and contamination.
• £100 million: the overall limit of liability for environmental pollution, gas explosions, and contamination per year.
• March 2000: the extended date for the taxpayer to cover insurance claims for railway accidents and commercial failures.
• 2 years: the timeframe given to Hunting-Brae, the defence consortium, to find private insurers to take on the risk previously held by the Government.

Sources:

• "White paper on atomic industry costings"
• THE TAXPAYER IS TO MEET ANY INSURANCE CLAIMS FOR SERIOUS ACCIDENTS OR COMMERCIAL FAILURES ABOVE POUNDS 140 MILLION A YEAR FOR THE NEW PRIVATISED NUCLEAR COMPANY, BRITISH ENERGY - THE DAILY TELEGRAPH, HARRIET JAMESON, MAY 27, 1993.