Draft Nuclear Installations (Compensation for Nuclear Damage) (Amendment) Regulations 2025

Andrew Bowie Excerpts

Tuesday 24th June 2025 General Committees

[Andrew Bowie (West Aberdeenshire and Kincardine) (Con)]

It is a pleasure to serve under your chairmanship, Mr Betts. It is an unusual experience to be in full agreement with most of what the Minister has said. [Hon. Members: “Hear, hear!”] Do not get used to it.

I took the Energy Act through the last Parliament, and it is under section 22 of the Act in which the amendments necessary to implement the convention on supplementary compensation for nuclear damage are contained. Section 306 of the Act outlines the powers of the Secretary of State to make regulations concerning the CSC. The regulation before us today seeks to amend the classification of claims for compensation in respect of the convention on supplementary compensation, as set out under section 22 of the Energy Act/Nuclear Installations Act 1965.

Under the Nuclear Installations Act 1965, if compensation claims, excluding CSC-only claims, reach an aggregate of €700 million from the responsible person, the appropriate authority may be required to satisfy further claims, including CSC claims up to the equivalent of the aggregate €700 million and the value of the CSC international pooled funds. For CSC-only claims, the responsible person’s liability limit is 300 million special drawing rights, after which the appropriate authority’s liability is limited to the aggregate of 300 million special drawing rights and the value of the CSC international pooled funds.

Regulation 2(3)(b) will omit section 16(1ZAA) of the Nuclear Installations Act. Subsection (1ZAA) sets a financial limit on the compensation payable by a responsible person for CSC-only claims. Thereby, this regulation seeks to remove the lower liability cap for claims that relate only to the CSC, which is in place for claims arising under the convention on third-party liability in the field of nuclear energy: the Paris convention. As a result, the liability for claims under either convention is brought to €700 million. Any claim brought under the CSC, or under the CSC and the Paris convention, would have a cap on liability of €700 million plus the value of the CSC international pooled funds.

As a nation seeking to build a golden age of new nuclear—not quite as golden as it might have been had the Government stuck to our plans, but a golden age none the less—and to implement a revival of civil nuclear in the UK as part of our secure, affordable, clean energy ambitions, it is incumbent on us to put in place the necessary mechanisms to ensure consistent liabilities in the event of damages. That is what the draft regulations seek to do. I am in violent agreement with the Minister on this point, and we do not oppose any of these changes today.

Question put and agreed to.