[cdn-nucl-l] UK Nuclear power station 'set to close'

["Adam McLean" <adam.mclean@utoronto.ca>]

Posted in the UK Telegraph on June 23, 2002 and at:
http://portal.telegraph.co.uk/news/main.jhtml?xml=/news/2002/06/21/unuke
.xml&sSheet=/portal/2002/06/21/ixport.html
Followed by announcement from BNFL corporate web page.

The end of an era in the UK.

Note: Calder Hall was opened by Her Majesty Queen Elizabeth II in 1956.
It was the world's first industrial-scale nuclear power station. The
station has four magnox nuclear reactors with a total output of 194 MW.
Chapelcross was built on an airfield that had been used during World War
II for pilot training. It began electricity production in February 1959.
Its four magnox nuclear reactors produce 192 MW.

Adam

----------------

Nuclear power station 'set to close'
(Filed: 21/06/2002) 

Politicians have called for talks to soften a jobs blow following the
announcement that two of the world's oldest nuclear power stations will
close three years early.

The decision by British Nuclear Fuels (BNFL) to shut Calder Hall in
Cumbria and Chapelcross in south-west Scotland received a mixed
response. The company, which reviewed the operation of its whole magnox
reactor fleet, said the move was driven by the plummeting cost of
electricity in the past two years. 

There are nearly 800 people employed at the two sites. Numbers are
expected to drop to 600 during the 10-year decommissioning period
following the closure of the power stations. Management said there would
still be about 100 workers needed at each of the sites for an estimated
five years after decommissioning. 

BNFL said both stations had small generating capacity by today's
standards and were operating under high fixed overheads. Scottish
National Party shadow environment spokesman Bruce Crawford called for
job losses to be kept to a minimum. "Clearly the decision made by BNFL
to close this nuclear plant is a financial one," he said. "Nuclear power
is uneconomic full stop and I hope that this decision signals the
beginning of the end for nuclear power in Scotland." 

South of Scotland MSP Michael Russell said he would be seeking a meeting
with management, unions and enterprise agencies to assess the impact of
the company's decision. "This needs to be a managed process and I will
offer any assistance to help that process have a successful outcome." 

The Calder Hall reactors, originally due to start closing in 2006, will
now shut in March 2003 and those at Chapelcross, originally due to start
closing in 2008, will complete a progressive shutdown by no later than
March 2005. Chapelcross, near Annan, in Dumfries and Galloway, is to
operate longer than Calder Hall to allow completion of a Ministry of
Defence contract. 

C Copyright of Telegraph Group Limited 2002. Terms & Conditions of
reading.
Commercial information.   Privacy Policy.

---------------------

21st June 2002
BNFL Announces Shortened Lifetimes for Calder Hall and Chapelcross Power
Stations   
  
BNFL is bringing forward the planned dates for cessation of generation
at Calder Hall and Chapelcross, the Company's oldest magnox power
stations. The Calder Hall reactors, originally due to start closing in
2006, will now shut down in March 2003 and those at Chapelcross,
originally due to start closing in 2008, will complete a progressive
shut down by no later than March 2005.

BNFL has been driven to this decision by the continuing low prices in
the wholesale electricity market. Both stations have small generating
capacity by today's standards giving rise to relatively high fixed
overheads and their operating costs - particularly for the fuel cycle -
have increased significantly recently. The income that the power
stations can generate no longer covers the costs of operation.

"This is a tough but necessary commercial decision" said BNFL's Chief
Executive Norman Askew earlier today. "I have always said that we would
continue to run these pioneering workhorses of the nuclear industry
while they remain safe and economic. They are still safe but the
electricity prices have fallen significantly and to a level that makes
them uneconomic. We do not see this fall in price recovering in the next
few years and thus we can no longer justify running the plant."

Both power stations will continue to operate while staff tackle the
considerable amount of work needed to plan and prepare for the
defuelling and subsequent decommissioning of the reactors. "We can't
start decommissioning immediately" explains Mr Askew "because we have to
prepare ourselves and get formal consent for our plans from our
independent safety watchdogs. In the mean time, we need to earn some
valuable income rather than leave the reactors idle. At Chapelcross, we
also need to complete work under contract for the Ministry of Defence,
which is the reason that this station will operate longer than Calder
Hall".

Care for the power stations' staff is Mr Askew's other priority. "We
have nearly 800 people working at the two sites and we will help them
all through this period of uncertainty so that they can make sound plans
for their personal futures. There will be jobs to do at the power
station for years to come but, inevitably, staff numbers will fall. 
"There will be good opportunities for different jobs at Sellafield and
other BNFL sites" said Mr Askew "but for those who leave, we will do all
we can to ensure fair treatment and to support them on their way." 

BNFL's announcement follows an economic review of the operation of its
whole magnox reactor fleet. The review concluded that continued
operation of the larger magnox stations has a sound economic basis but
that Calder Hall and Chapelcross, with their relatively low output but
high overheads, had become loss-making. All other magnox reactors will
operate to their existing planned lifetimes, subject to them continuing
to remain safe and economic.

Notes to editors

1. Calder Hall was opened by Her Majesty Queen Elizabeth II in 1956. It
was the world's first industrial-scale nuclear power station. The
station has four magnox nuclear reactors with a total output of 194 MW.

2. Chapelcross was built on an airfield that had been used during World
War II for pilot training. It began electricity production in February
1959. Its four magnox nuclear reactors produce 192 MW.

3. At full power, both power stations produce electricity equivalent to
the needs of around 200,000 homes.

For further information contact:

BNFL Magnox Generation press office on 01453 812492

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