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Contingent Liability Notification – Nuclear Decommissioning Authority Construction Risk Indemnity
24 June 2026
Type
Written Ministerial Statement
Department
Department for Energy Security and Net Zero
At a Glance
Issue Summary
The statement addresses the provision of a contingent liability indemnity by the Department for Energy Security and Net Zero to cover construction risks at Nuclear Decommissioning Authority sites.
Action Requested
The Minister proposes providing an indemnity to NDA for construction project risks, saving them £1m annually compared to insurance premiums. This will be effective from October 1, 2026, with a cap of £650 million per year and claim.
Key Facts
- The indemnity covers non-Nuclear Installation Act 1965 risks.
- It saves NDA at least £1m per year compared to insurance premiums.
- The probability of crystallisation is low, mitigated by risk assessments and safety controls.
- A Departmental Minute has been laid before Parliament setting out full details of this contingent liability.
- Treasury has approved the principle of this liability.
- Claims over £20m will be covered under the indemnity up to a £650 million cap per year and claim.
- The liability will only cover risks not included in the Nuclear Indemnity.
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