Scottish Nuclear

After an initial failed attempt to privatize nuclear power with the rest of the British electricity industry in 1990, the government put the nuclear stations into two state-owned companies. Nuclear Electric for the English and Welsh stations, and Scottish Nuclear for the Scottish stations. In 1995 the more modern advanced gas cooled reactor (AGR) stations plus the new pressurized water reactor (PWR) at Sizewell were privatized in the form of a new company, British Energy pic. The older Magnox reactors were retained in a company called Magnox Electric. 

However, the government s time scale for privatization was aggressive, and concerns over the potential nuclear liabilities could not be resolved within the time that had been allotted. Consequently, at a late stage in the process, the govermnent decided to withdraw all nuclear power stations from the sale of the CEGB. The nuclear stations in England and Wales were to remain within the ownership of the govermnent under a new publicly owned company called Nuclear Electric, while the nuclear power stations in Scotland would be transferred to a newly created all-nuclear company called Scottish Nuclear. 

Fears over the effects of privatization on nuclear safety have been responsible for some of the concerns about electricity privatization. In 1995, the former director of safety at Scottish Nuclear, Richard Killick, claimed that Low morale, overworked operators, and the rush to reduce costs before privatization posed a threat of a significant reduction in safety [and that] privatization would erode safety culture (The Herald, 1993). Criticism of nuclear safety was also leveled against Nuclear Electric following an incident at the Wylfa Twin Magnox Power Stations in 1993 (Safety Management, 1995). In this incident, reactor operation was allowed to continue even though safety had clearly been compromised. However, Nuclear Electric denied that commercial considerations played any part in the decision to defer shutdown. 

Separate the existing Nuclear Electric and Scottish Nuclear operations staff and central resources into Magnox and AGR/PWR divisions ... 

At the time new site licenses are issued, transfer all reactors to their post-privatization owners (Nuclear Electric and Scottish Nuclear for AGR and PWR assets, Magnox Electric for all Magnox reactors), and create a holding company called British Electric with the privatized Nuclear Electric and Scottish Nuclear as its subsidiaries. 

Nil took the position that any contracts for services essential to the safe operation of the sites would need to be re-established by the new licensees (Nuclear Electric and Scottish Nuclear, who held sole responsibility for safety under their licenses), not by the parent holding company. Nil reasoned that contractor failure could not release a licensee from the responsibility associated with its site license. Nil ultimately judged the new contract arrangements to be satisfactory. 

Findings on British Energy Generation (Ul Limited (formerly Scottish Nuclear)... 

A new company British Energy pic has been formed but which retains the previous nuclear utilities Nuclear Electric and Scottish Nuclear for licensing reasons. British Energy pic, which was successfully floated on the UK stock exchange in July 1996 owns the fourteen UK Advanced Gas Cooled Reactors and the Sizewell B Pressurised Water Reactor. 

Current UK nuclear capacity totals 14,000 MWe (Gross) the largest proportion of which is provided by Advanced Gas Cooled Reactors (64%) followed by Magnox Reactors (27%) and Pressurised Water Reactors (9%). This capacity is currently operated by the two Utilities Nuclear Electric (78%), Scottish Nuclear (19%) and tihe fuel cycle company BNFL (3%). 

This work was supported under the UK H.SE Co-ordinated Programme on Waste and Decommissioning (IMC Ref. WD/GNSR/5004) and is published by permission of the members of the Industry- Management Committee (British Nuclear Fuels pic. Magnox Electric pic. Nuclear Electric Ltd and Scottish Nuclear Ltd). 

The nuclear power stations were not included in the early privatisation programme but became a separate company known as Nuclear Electric. In 1996, the AGR and PWR assets of Nuclear Electric and Scottish Nuclear were combined and privatised as British Energy. The magnox assets of both companies were transferred to Magnox Electric, which became part of British Nuclear Euels in 1998. Magnox is currently owned by Energy Solutions. 

---