UK Nuclear Liability Reforms: Government Launches Post‑Implementation Review

The UK Government is conducting a Post-Implementation Review on the impact of the following nuclear installation regulations (the “Regulations”):

• The Nuclear Installations (Prescribed Sites and Transport) Regulations 2018;

• The Nuclear Installations (Insurance Certificate) Regulations 2017; and 

• The Nuclear Installations (Excepted Matter) Regulations 2017.

Stakeholders are asked to provide feedback to help determine: 

1. whether the Regulations meet their original objectives;

2. their impact on operators and whether there have been any unintended consequences; and 

3. if the objectives remain appropriate and the extent to which they could be achieved through less onerous regulation.

2016 Consultation 

In June 2016, the DECC (now DESNZ) published a consultation entitled “Nuclear Third Party Liability: Defining Prescribed Sites and Transport” (“2016 Consultation”).

The 2016 Consultation sought views on proposed changes to the same three sets of regulations (first adopted in 1983, 1965 and 1978 respectively) to support implementation of the 2004 Protocols to the Paris Convention on Third Party Liability in the Field of Nuclear Energy and the Brussels Supplementary Convention (“2004 Protocols”). 

In August 2017, the Government’s consultation response confirmed it would proceed with implementation of new regulations to reflect wider changes to the UK’s nuclear liability regime (“2017 Consultation Response”). At the same time it launched a further consultation in relation to the final criteria for intermediate-risk prescribed sites and how the definitions would be framed in the new regulations. It issued its response to this further consultation in January 2018.

The Nuclear Installations (Prescribed Sites and Transport) Regulations 2018

The Nuclear Installations (Prescribed Sites and Transport) Regulations 2018  came into force on 1 January 2022 (i.e. the date on which the 2004 Protocols took effect domestically in the UK) and implemented the updated definitions and liability categories arising from the consultation processes. Different categories of nuclear sites are prescribed according to the level of nuclear risk by distinguishing between: (i) low risk nuclear sites (€70 million); (ii) Low risk disposal sites (€70 million); (iii) low risk transport from nuclear sites (€80 million); (iv) low risk transport from disposal sites (€80 million); and (iv) intermediate-risk sites (€80 million). The liability limits for ‘standard’ sites were also increased to €1,200 million in the Nuclear Installations (Liability for Damage) Order 2016.

The Nuclear Installations (Insurance Certificate) Regulations 2017

The 2016 Consultation included proposals to: 

• extend the requirement for insurance certificates to cover ‘relevant disposal sites’ as well as transport activities; and 

• update the Nuclear Installations (Insurance Certificate) Regulations 1965 to reflect the modernised liability framework under the 2004 Protocols.

The 2017 Consultation Response confirmed the Government’s intention to revoke and replace the Nuclear Installations (Insurance Certificate) Regulations 1965, and implement the changes through new regulations aligned with the updated liability regime.

As part of the wider package of nuclear third‑party liability reform that came into force at the same time as the UK’s implementation of the 2004 Protocols, the Nuclear Installations (Insurance Certificate) Regulations 2017 came into force on 1 January 2022. These regulations explain how operators must evidence that they have the required financial security (by insurance or other means) for nuclear liability under the NIA65. 

The Nuclear Installations (Excepted Matter) Regulations 2017

Detailed criteria relating to the concept of “excepted matter” were previously set out in the Nuclear Installations (Excepted Matter) Regulations 1978. In its 2016 Consultation, the Government consulted on: 

• whether the existing “excepted matter” definitions remained appropriate; and 

• proposals to revoke and replace the Nuclear Installations (Excepted Matter) Regulations 1978 to align with modern safety standards and the updated liability regime.

The 2017 Consultation Response confirmed that while the excepted matter regime should be updated, it should be retained in principle with revised thresholds and references to current IAEA Safety Regulations (as amended from time to time). 

The Nuclear Installations (Excepted Matter) Regulations 2017 came into force on 6 April 2018 ahead of the revised liability limits in 2022, reflecting their technical nature and the need for early clarity on the scope of “excepted matter”. 

These regulations prescribe categories of very low‑risk nuclear matter that are treated as “excepted matter” for the purposes of section 26 of the NIA65. Where nuclear matter falls within this definition, the statutory nuclear liability regime does not apply – this means that nuclear liability will not be channelled to the operator. 

2026 Post Implementation Review 

The purpose of the Government’s Post Implementation Review is to determine whether the Regulations achieve their objectives and crucially, if there have been any unintended effects. It aims to assess whether the UK’s nuclear liability framework is working as intended in practice and if it remains fit for purpose as the sector evolves, new market entrants emerge, and risk profiles change.

Stakeholder engagement is critical to help inform whether any changes to the Regulations are necessary. 

Please contact our team of nuclear experts if you would like to discuss any aspect of the Regulations or require support with your response to the Government’s Post Implementation Review. 

This article was written by Laura Tobin.