86. BNFL's core business in the fabrication and supply of nuclear fuel to generators of electricity does not at present have an obvious long-term future in the UK. The supply of Magnox fuel is now an internal BNFL transaction. The Oxide Fuels Complex will continue for some years to supply fuel to the UK's seven AGRs.[142] Within around ten years however the oldest of these power stations will be approaching retirement. There is no sign at present that they will be replaced, despite our recommendation in 1998 that a formal presumption should be made for the purposes of long term planning that new nuclear plant may be required in the course of the next two decades.[143] Fuel for the most modern of the UK's nuclear power stations, the Sizewell B PWR, is now supplied under contract by Siemens.[144] Other than some Magnox sales a number of years ago, BNFL has not had great success in selling fuel abroad. Its share in the Urenco enrichment business brings some profit. It is therefore important that the opportunity offered by the purchase of the Westinghouse business to replace its stagnant or declining UK fuel operations with a global business in fuel services is seized. The advisers retained by the DTI are no doubt still seeking to obtain a realistic view of BNFL's prospects in this market. While most attention has been focussed on BNFL's clean-up operations in the US, it is essential that Ministers and the Department's advisers also focus on the expansion of the fuel services business as a result of the Westinghouse purchase.

143  HC 471, para 58 Back

144  Ibid, Qq 259-60: Ev, p 25, para 22 & p 125: Q 148 Back