12:10PM Nuclear Decommissioning Authority says increase is due to 'improved understanding' of Sellafield

Britain’s civil nuclear clean-up operation will cost £65bn, the Nuclear Decommissioning Authority has said. The figure is £2.1bn more than its earlier cost estimation, according to a report from Reuters.

The NDA put the increase down to an “improved understanding” of the cost of cleaning-up Sellafield.

The NDA also attacked the decommissioning plans submitted by contractors, which it said could further impact on costs. It said: “For example, our sites do not currently assess risk and allocate contingency on a consistent basis... These weaknesses could lead to substantial amendments in clean-up costs.”

The NDA announced earlier this week it would split into four parts British Nuclear Group, which oversees all cleaning-up of state-owned nuclear power plants. The break-up is part of the Government’s plan to privatise BNG. The move is aimed at encouraging competition within the decommissioning market.