Corporate report

Statement of the Nuclear Decommissioning Funding Account, for the period from 1 April 2023 to 31 March 2024 (accessible webpage)

Published 25 July 2024

Presented to Parliament pursuant to Section 32(5) of the Energy Act 2004

Ordered by the House of Commons to be printed 25 July 2024

HC 87

ISBN 978-1-5286-4896-7
E03126236 07/24

Foreword

Under Section 32(1) of the Energy Act 2004, the Secretary of State must prepare a Statement of the Nuclear Decommissioning Funding Account (the Statement). The Statement for 2023-24 is set out on page 10.

The Nuclear Decommissioning Authority (NDA) is responsible for decommissioning and clean-up of designated civil public sector nuclear sites. The NDA became fully operational as a non-departmental body of the Department of Trade and Industry on 1 April 2005. After subsequent reorganisations and Machinery of Government changes, the Department for Energy Security and Net Zero was formed on 7 February 2023. As of this date, the NDA is sponsored by the Department for Energy Security and Net Zero.

In addition to its decommissioning responsibility, the NDA is required to operate existing commercial activities on its sites until current contracts with United Kingdom and overseas customers have been met. The Government is committed to funding the costs of the decommissioning and clean-up of the civil nuclear liabilities arising at the NDA’s sites.

The Statement sets out the notional funding available from the Consolidated Fund for use by the NDA during 2023-24 on its activities and the funding that the NDA drew down from the Consolidated Fund during 2023-24. The underlying funding is accounted for within the Consolidated Fund, the Department for Energy Security and Net Zero’s Annual Report and Accounts 2023-24 and the NDA’s Annual Report and Accounts 2023-24.

Jeremy Pocklington
Permanent Secretary and Principal Accounting Officer
05 July 2024

The Report of the Comptroller and Auditor General to the Houses of Parliament

Purpose of this Agreed-Upon Procedures Report and Restriction on Use and Distribution

I issue this agreed-upon procedures report to discharge my responsibility under the Energy Act 2004. This report may not be suitable for another purpose.

Responsibilities of the Engaging Party and Responsible Party

The Accounting Officer of the Department for Energy Security and Net Zero acting on behalf of the Secretary of State has acknowledged that the agreed-upon procedures are appropriate for the purpose of the engagement.

The Accounting Officer of the Department for Energy Security and Net Zero acting on behalf of the Secretary of State is responsible for the preparation of the Statement of the Nuclear Decommissioning Funding Account in accordance with the Energy Act 2004 on which the agreed-upon procedures are performed. The subject matter is the Statement of the Nuclear Decommissioning Funding Account.

Practitioner’s Responsibilities

My responsibility is to examine and report to Parliament on the Statement of the Nuclear Decommissioning Funding Account in accordance with the Energy Act 2004.

I have conducted the agreed-upon procedures engagement in accordance with the International Standard on Related Services (ISRS) 4400 (Revised), Agreed-Upon Procedures Engagements. An agreed upon procedures engagement involves my performing the procedures that have been agreed with the Accounting Officer of the Department for Energy Security and Net Zero, and reporting the findings, which are the factual results of the agreed-upon procedures performed. I make no representation regarding the appropriateness of the agreed-upon procedures.

This agreed-upon procedures engagement is not an assurance engagement. Accordingly, I do not express an opinion or an assurance conclusion. Had I performed additional procedures, other matters might have come to our attention that would have been reported.

Professional Ethics and Quality Management

My staff and I comply with the International Code of Ethics for Professional Accountants (including International Independence Standards) published by the International Ethics Standards Board for Accountants (‘the IESBA Code’). I am independent of the Department for Energy Security and Net Zero and the Secretary of State in accordance with the ethical requirements that are relevant to my engagements in the UK. My staff and I have fulfilled our other ethical responsibilities in accordance with these requirements.

My staff and I apply International Standard on Quality Management (ISQM) 1, Quality Management for Firms that Perform Audits or Reviews of Financial Statements, or Other Assurance and Related Services Engagements, and accordingly, maintain a comprehensive system of quality control including documented policies and procedures regarding compliance with ethical requirements, professional standards and applicable legal and regulatory requirements.

Procedures and Findings

My staff and I have performed the procedures described below, which were agreed with the Department for Energy Security and Net Zero acting on behalf of the Secretary of State in the letter of understanding dated 29th January 2024 on the Statement of the Nuclear Decommissioning Funding Account.

Procedures	Findings	Exceptions found
Check that the Foreword relates to the correct period and that the content is consistent with the requirements of the Energy Act 2004.	The foreword relates to the correct period and the content is consistent with the requirements of the Energy Act 2004.	No exceptions have been found.
Confirm that the Nuclear Decommissioning Funding Account Statement includes comparator figures that agree to the prior year’s financial statement, is arithmetically correct and that the format is consistent with the requirements of the Energy Act 2004.	The statement includes comparator figures that agree to the prior year Nuclear Decommissioning Funding Account statement. It is arithmetically correct. The format is consistent with the requirements of the Energy Act 2004.	No exceptions have been found.
Obtain a copy of the Secretary of State’s funding determination of amounts to be credited to the Nuclear Decommissioning Funding Account under s31(4)c Energy Act 2004 and confirm it against the amounts presented in the Nuclear Decommissioning Funding Account. Confirm that HM Treasury have provided consent to the funding determination in accordance with s31(9) Energy Act 2004.	The amounts presented in the Nuclear Decommissioning Funding Account are consistent with the Secretary of State’s funding determination. HM Treasury have provided consent to the determination.	No exceptions have been found.
Confirm that the commercial receipts surrenderable to the consolidated fund have been reported accurately by agreeing the amounts surrendered to the consolidated fund with the Nuclear Decommissioning Authority bank statements and agreeing the amounts to be surrendered to the consolidated fund with amounts payable at year end in the Nuclear Decommissioning Authority accounting records.	The amount for commercial receipts surrenderable to the consolidated fund is consistent with the Nuclear Decommissioning Authority bank statements and amounts payable at year end within the Nuclear Decommissioning Authority accounting records.	No exceptions have been found.
Confirm that the total funding drawn down from the Consolidated Fund in the Nuclear Decommissioning Funding Account statement is consistent with amounts received as Grant in Aid within the Nuclear Decommissioning Authority bank statements.	The amount for total funding drawn from the consolidated fund is consistent with amounts received as Grant in Aid within the Nuclear Decommissioning Authority bank statements.	No exceptions have been found.

Gareth Davies
Comptroller and Auditor General
National Audit Office
157-197 Buckingham Palace Road
Victoria
London
SW1W 9SP
24 July 2024

Statement of Nuclear Decommissioning Funding Account 2023-24

	2023-24 Funding used (debits) £m	2023-24 Available funding (credits) £m	2022-23 Funding used (debits) £m	2022-23 Available funding (credits) £m
Balance at 1 April		11,527		10,828
Determination		3,930		3,975
Commercial receipts		516		572
Total funding available		15,973		15,375
Total funding drawn down from the Consolidated Fund	3,911		3,848
Balance at 31 March		12,062		11,527

Jeremy Pocklington
Permanent Secretary and Principal Accounting Officer
05 July 2024

Secretary of State Nuclear Decommissioning Funding Account Determination Under Section 31(4) of the Energy Act 2004

As required by section 31(5)(d) of the Energy Act 2004 (the “Act”), I am publishing the determination I have made for the purposes of section 31(4)(c) in accordance with the statement to the House on 7 December 2004 (Column 86WS) under section 31(6)(a) of the Act, which sets out my policy with regard to the determination of amounts to be credited to the Nuclear Decommissioning Funding Account (“the NDFA”) under section 31(4)(c) of the Act.

Determination under section 31(4)(c) of the Energy Act 2004:

I hereby determine that the amount to be credited to the NDFA in relation to the financial year 1 April 2023 to 31 March 2024 under section 31(4)(c) of the Act is £3,930,000,000.

The Rt Hon Ed Miliband MP
Secretary of State for Energy Security and Net Zero
19 July 2024