Defence of legal claims and settlement

4.3  The NDA spent £8.6 million on legal advice while it defended the legal claims issued by Energy Solutions and Bechtel (Figure 16). Almost all of this expenditure related to the Energy Solutions claims. It spent a further £1.2 million on assistance from legal advisers in reaching the terms of the settlement with both parties. The NDA estimates that, during litigation, its total in-house staff cost was £1.7 million (Figure 17).

4.4  In March 2017, the Secretary of State announced that the NDA had agreed settlements with Energy Solutions and Bechtel (Figure 18).

Figure 17

Costs of NDA staff time

 

£000

 

Competition

5,748

 

Litigation

1,720

 

Consolidation and termination

3,366

 

Total NDA staff time

10,835

 

Notes

1  These costs are estimates produced by the NDA in July 2017. NDA staff are not required to submit timesheets, and therefore staff costs have been approximated by listing all the individuals thought to have been involved, estimating the time they spent, and multiplying this by a cost per unit time that includes salary, benefits and national insurance contributions.

2  Travel costs of NDA staff have not been included. The NDA typically spends 5% of payroll costs on travel.

3  Figures may not sum due to rounding.

Source: Nuclear Decommissioning Authority estimates of in-house staff costs

 

Figure 18

Settlements with Energy Solutions and Bechtel

 

£000

 

Settlement with Energy Solutions

76,500

 

Legal costs for Energy Solutions

8,500

 

Settlement with Bechtel1

11,884

 

Legal costs for Bechtel

463

 

Total cost of settlements

97,346

 

Note

1  The NDA agreed a $14.8 million settlement with Bechtel; this has been converted to pounds sterling.

2  Figures may not sum due to rounding.

Sources: Hansard HC, 27 March 2017, vol. 624, col 25, and NDA Annual Report and Accounts, 2016-17