# Energy Act 2004

**Full title:** Energy Act 2004
**Citation:** 2004 c. 20
**Official source:** [legislation.gov.uk/ukpga/2004/20](https://www.legislation.gov.uk/ukpga/2004/20)
**Status:** In force
**Docket reference:** Ch06 Section 6.4, Section 6.5

## Purpose

The Energy Act 2004 restructured the UK's approach to nuclear decommissioning and clean-up by establishing the Nuclear Decommissioning Authority (NDA). It also made provisions for the Civil Nuclear Police Authority and amendments to nuclear licensing.

## Key Provisions Relevant to the Nuclear Fuel Cycle

### Part 1: Nuclear Decommissioning Authority (Sections 1-35)

- **Section 1:** Established the **Nuclear Decommissioning Authority (NDA)** as a non-departmental public body responsible for:
  - Decommissioning and cleaning up civil nuclear sites
  - Operating and managing designated nuclear installations and facilities
  - Ensuring safe and efficient management of nuclear waste and spent fuel

- **Section 3:** Designates installations and sites to fall under NDA responsibility. The NDA estate includes Sellafield, Magnox reactor sites, Dounreay, Capenhurst, Springfield, and the Low Level Waste Repository.

- **Section 13-16:** NDA must prepare and publish strategies and annual plans for carrying out its functions. The strategy is subject to Secretary of State approval.

- **Section 21-22:** Funding arrangements — NDA is funded through a combination of commercial revenue, government grant, and the Nuclear Liabilities Fund (NLF).

### Nuclear Liabilities and Funding (Sections 23-27)

- Provisions for the management of nuclear liabilities, including the Nuclear Liabilities Fund established to cover the decommissioning costs of British Energy (now EDF Energy) stations.

### Civil Nuclear Constabulary (Part 1, Chapter 3)

- Established the Civil Nuclear Police Authority (CNPA) and the Civil Nuclear Constabulary (CNC), responsible for armed policing and security at nuclear sites and during nuclear material transport.

### Amendments to NIA 1965

- Transferred nuclear regulatory functions and modified provisions relating to nuclear site licensing.

## NFC Course Relevance

- The NDA is the single largest entity in the UK nuclear fuel cycle — responsible for managing the legacy of over 60 years of nuclear operations including reprocessing, fuel fabrication, and reactor operation.
- The NDA's strategy determines how spent fuel, plutonium stocks, and high-level waste from reprocessing are managed.
- Understanding the NDA funding model (NLF, government grant, commercial revenue) is essential for students studying the economics and policy of the nuclear fuel cycle.
- The CNC is responsible for the physical protection of nuclear material — directly relevant to safeguards and security.

## Cross-References

- [NIA_1965.md](NIA_1965.md) — Licensing of NDA sites
- [EA_2013.md](EA_2013.md) — Further reorganisation of nuclear regulation
- [EA_2023.md](EA_2023.md) — Great British Nuclear and further energy policy changes
- [EPR_2016.md](EPR_2016.md) — Environmental permitting for NDA site waste disposals