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Nuclear Provision meaning

Published by a LexisNexis Energy expert
What does Nuclear Provision mean?
In practice, a nuclear provision is the quantified liability recognised for cleaning up the UK’s legacy nuclear estate. For the Nuclear decommissioning Authority (NDA), it is the best estimate, on a discounted present‑value basis, of the lifetime costs of decommissioning, dismantling and demolition of plant and buildings, managing, packaging, storing and disposing of all waste, and remediation of affected land at legacy sites. This is a descriptive accounting and regulatory expression rather than a defined statutory term. It is used in government and corporate reporting and in transactional documents, by reference to general accounting rules on provisions (for example IAS 37/IFRS and UK public sector equivalents). The NDA updates the provision regularly (typically annually) to reflect changes in scope, programme schedules, regulatory requirements, inflation and discount rates. It is central to funding settlements, procurement strategy, risk allocation, and warranties and indemnities concerning nuclear decommissioning liabilities. Usage is broadly consistent across England & Wales, Scotland and Northern Ireland. In Ireland, there is no NDA and no civil nuclear generation; the term is used more generally for provisions recognising decommissioning and radiological clean‑up liabilities under applicable financial reporting and regulatory regimes.
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View the related Practice Notes about Nuclear Provision

PRACTICE NOTES
Comprehensive guide to NEC Term Service Contracts (NEC3/NEC4): options, Scope, early warnings, programmes, payment, compensation events, liabilities, termination, disputes, Z clauses and subcontracting

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PRACTICE NOTES
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PRACTICE NOTES
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