Nuclear Installations Act 1965

16 Satisfaction of claims by virtue of ss. 7 to 10. U.K.

[F1 (1) The liability of a person to pay compensation under this Act by virtue of a duty imposed on that person by section 7, 7B, 8 or 9 does not require that person to make in respect of any one occurrence or event constituting a breach of that duty payments by way of compensation exceeding in the aggregate, apart from payments in respect of interest or costs—

(a) the equivalent in sterling of 70 million euros, where the person is the licensee of a licensed site that is prescribed for the purposes of this paragraph and the breach of duty is a breach of duty by that person as licensee of that licensed site that consists of—

(i) an occurrence or event on the licensed site, or

(ii) an occurrence or event elsewhere than on the licensed site involving nuclear matter other than excepted matter, where the nuclear matter in question satisfies the condition in section 7A(8) in relation to the licensee, without also satisfying any of the conditions in section 7A(2) to (7);

(b) the equivalent in sterling of 70 million euros, where the person is the operator of a relevant disposal site that is a site prescribed for the purposes of this paragraph and the breach of duty is a breach of duty by that person as the operator of that relevant disposal site that consists of—

(i) an occurrence or event on the relevant disposal site, or

(ii) an occurrence or event elsewhere than on the relevant disposal site involving nuclear matter other than excepted matter, where the nuclear matter in question satisfies the condition in section 7A(8) (as applied by section 7B) in relation to the operator, without also satisfying any of the conditions in section 7A(2) to (7) (as applied by section 7B);

(c) the equivalent in sterling of 160 million euros, where the person is the licensee of a licensed site that is prescribed for the purposes of this paragraph and the breach of duty is a breach of duty by the person as licensee of that licensed site that consists of—

(i) an occurrence or event on the licensed site, or

(ii) an occurrence or event elsewhere than on the licensed site involving nuclear matter other than excepted matter, where the nuclear matter in question satisfies the condition in section 7A(8) in relation to the licensee, without also satisfying any of the conditions in section 7A(2) to (7);

(d) the equivalent in sterling of 80 million euros, in the case of an occurrence or event involving nuclear matter which is not excepted matter and which is either in the course of such carriage as is described in section 7A(2)(a), (3)(a), (4)(a), (5)(a) or (7)(a) or in such case as is described in section 7A(6)(c) or (7)(b), where—

(i) the nuclear matter in question meets such conditions as are prescribed for the purposes of this paragraph or such conditions specific to the means of carriage used as are prescribed for the purposes of this paragraph, and

(ii) that occurrence or event constitutes a breach of duty by a licensee as licensee of a licensed site;

(e) the equivalent in sterling of 80 million euros, in the case of an occurrence or event involving nuclear matter which is not excepted matter and which is either in the course of such carriage as is described in section 7A(2)(a), (3)(a), (4)(a), (5)(a) or (7)(a) (as applied by section 7B) or in such case as is described in section 7A(6)(c) or (7)(b) (as applied by section 7B), where—

(i) the nuclear matter in question meets such conditions as are prescribed for the purposes of this paragraph or such conditions specific to the means of carriage used as are prescribed for the purposes of this paragraph, and

(ii) that occurrence or event constitutes a breach of duty by the operator of a relevant disposal site in that capacity;

(f) subject to section 16B, the equivalent in sterling of 1,200 million euros, in any other case.

(1ZA) Notwithstanding subsection (1), if the amount payable by a person in respect of claims for compensation under this Act in respect of any one occurrence or event constituting a breach of a duty imposed on that person by section 7, 7B, 8 or 9 [F2 , other than CSC-only claims,] reaches, in the aggregate and apart from interest or costs, the equivalent in sterling of 700 million euros, that person is not required to satisfy further claims for compensation except to the extent that they are special relevant claims.

[F3 (1ZAA) Notwithstanding subsection (1), if the amount payable by a person in respect of CSC-only claims for compensation under this Act in respect of any one occurrence or event constituting a breach of a duty imposed on that person by section 7, 7B, 8 or 9 reaches, in the aggregate and apart from interest or costs, the equivalent in sterling of 300 million special drawing rights, that person is not required to satisfy further claims for compensation.]

(1ZB) Notwithstanding subsection (1), if—

(a) the amount payable by a person in respect of claims for compensation under this Act in respect of any one occurrence or event constituting a breach of a duty imposed on that person by section 7, 7B, 8 or 9 reaches, in the aggregate and apart from interest or costs, the amount in sterling that is—

(i) the limit on liability established by the law of a relevant reciprocating territory made for purposes corresponding to those of subsection (1ZA), or

(ii) the equivalent in sterling of an amount denominated in another currency or unit of account that is the limit on liability established by the law of a relevant reciprocating territory made for such purposes, and

(b) that amount in sterling is less than the amount that would apply if the applicable limit were the limit in subsection (1ZA),

that person is not required to satisfy further claims for compensation to the extent that they are referable to that relevant reciprocating territory.]

[F4 (1A) The Secretary of State may with the approval of the Treasury by order increase or further increase [F5 any amount specified in subsection (1), (1ZA) [F6 , (1ZAA), (3B), (3BA), (3BB), (3BC) or (3BD)]]; but an order under this subsection shall not affect liability in respect of [F7 an occurrence or event happening before (or beginning to happen before)] the order comes into force.]

(2) A relevant foreign operator shall not be required by virtue of section 10 of this Act to make any payment by way of compensation in respect of an occurrence [F8 or event]—

(a) if he would not have been required to make that payment if the occurrence [F8 or event] had taken place in his home territory and the claim had been made by virtue of the relevant foreign law made for purposes corresponding to those of section 7, [F9 7B,] 8 or 9 of this Act; or

(b) to the extent that the amount required for the satisfaction of the claim is not required to be available by the relevant foreign law made for purposes corresponding to those of section 19(1) of this Act and has not been made available under section 18 of this Act or by means of a relevant foreign contribution.

[F10 (3) A claim by virtue of a duty imposed on a person by section 7, 7B, 8, 9 or 10—

(a) to the extent to which, by virtue of subsection (1) [F11 , (1ZA), (1ZAA), (1ZB)] or (2), though duly established, it is not or would not be payable by that person, or

(b) which is a claim the full satisfaction of which out of funds otherwise required to be, or to be made, available for the purpose is prevented by section 21(1),

may be the subject of proceedings for compensation under this Act brought against the appropriate authority.

(3A) Payments of compensation under this Act made by the appropriate authority in such proceedings may not exceed in the aggregate, apart from payments in respect of interest or costs, the amount of the sums made available for the purpose under section 18.

(3B) If the amount payable in respect of claims for compensation under this Act in respect of any one occurrence or event constituting a breach of a duty imposed on a person by section 7, 7B, 8, 9 or 10 [F12 , other than CSC-only claims (“non-CSC-only claims”),] reaches, in the aggregate and apart from interest or costs, the equivalent in sterling of 700 million euros, the appropriate authority is not required to satisfy further [F13 non-CSC-only] claims for compensation except to the extent that they are special relevant claims [F14 or CSC claims (or both)].

[F15 (3BA) To the extent that further non-CSC-only claims for compensation are special relevant claims, the appropriate authority may be required to satisfy them up to the equivalent in sterling of 1,500 million euros (in the aggregate and apart from interest or costs). 

(3BB) To the extent that further non-CSC-only claims for compensation are CSC claims, the appropriate authority may be required to satisfy them up to the equivalent in sterling of the aggregate of 700 million euros and the value of the CSC international pooled funds (in the aggregate and apart from interest or costs).

(3BC) To the extent that further non-CSC-only claims for compensation are both special relevant claims and CSC claims, the appropriate authority may be required to satisfy them up to the equivalent in sterling of the aggregate of 1,500 million euros and the value of the CSC international pooled funds (in the aggregate and apart from interest or costs).

(3BD) If the amount payable in respect of CSC-only claims in respect of any one occurrence or event constituting a breach of a duty imposed on a person by section 7, 7B, 8, 9 or 10 reaches, in the aggregate and apart from interest or costs, the equivalent in sterling of the aggregate of 300 million special drawing rights and the value of the CSC international pooled funds, the appropriate authority is not required to satisfy further such claims for compensation.

(3BE) If the CSC international pooled funds are (or will be) reduced by virtue of claims to which subsection (3) applies by 50%, the appropriate authority is not required to satisfy further claims for compensation if that would give rise to a further reduction of those funds except to the extent that those further claims are non-UK CSC claims.]

(3C) If the amount payable in respect of claims for compensation under this Act in respect of any one occurrence or event constituting a breach of a duty imposed on a person by section 7, 7B, 8, 9 or 10 reaches, in the aggregate and apart from interest or costs, the amount in sterling that is—

(a) the limit on liability established by the law of a relevant reciprocating territory made for purposes corresponding to those of subsection (3B) [F16 or, in a case where the relevant reciprocating territory is also a CSC territory (as defined by section 16AA), (3BB)], or

(b) the equivalent in sterling of an amount denominated in another currency or unit of account that is the limit on liability established by the law of a relevant reciprocating territory made for such purposes,

the appropriate authority is not required to satisfy further claims for compensation to the extent that they are referable to that relevant reciprocating territory.

(3D) Subsection (3E) has effect in relation to—

(a) a claim falling within subsection (3) to the extent that, leaving aside payments in respect of interest or costs, it is not or would not be satisfied out of sums made available for the purpose under section 18 or by means of a relevant foreign contribution;

(b) a claim that is not satisfied, or so much of a claim as is not satisfied, because of—

(i) subsection (1ZA) [F17 , (1ZAA),] or (1ZB),

(ii) a relevant foreign law made for purposes corresponding to those of subsection (1ZA) [F18 , (1ZAA),] or (1ZB) which is given effect by subsection (2), or

(iii) subsection (3B) [F19 , (3BA), (3BB), (3BC), (3BD), (3BE)] or (3C).

(3E) If the claim is established to the satisfaction of the appropriate authority, it is to be satisfied by the appropriate authority—

(a) to such extent as Parliament may determine, and

(b) out of funds provided by such means as Parliament may determine.

(3F) Provision made by Parliament under subsection (3E) may make different provision for different sorts of claim.]

(4) Where in pursuance of [F20 subsection (3E)] a claim has been made to the appropriate authority, any question affecting the establishment of the claim or as to the amount of any compensation in satisfaction of the claim may, if the authority thinks fit, be referred for decision to [F21 the court that would have had jurisdiction in accordance with section 16C to determine the claim but for this section]; and the claimant may appeal to that court from any decision of the authority on any such question which is not so referred; and on any such reference or appeal—

(a) the authority shall be entitled to appear and be heard; and

(b) notwithstanding anything in any Act, the decision of the court shall be final.

F22 (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F23 (6) Before exercising any function under subsection (1) or (1A) in or as regards Scotland, the Secretary of State must consult the Scottish Ministers.

(7) A reference in this section to the equivalent in sterling of an amount denominated in another currency or unit of account is a reference to the amount of sterling that is the equivalent of that amount in that currency or those units on the day (or the first day) of the occurrence or event in question.]

[F24 (8) In this section “appropriate authority” means—

(a) in the case of a claim by virtue of section 9 where the government department concerned is a part of the Scottish Administration, the Scottish Ministers;

(b) in any other case, the Secretary of State.]

Textual Amendments

F1 S. 16(1)-(1ZB) substituted for s. 16(1) (coming into force in accordance with art. 1(2)-(5) of the amending S.I.) by The Nuclear Installations (Liability for Damage) Order 2016 (S.I. 2016/562), arts. 1(5), 19(2) (with art. 40)

F2 Words in s. 16(1ZA) inserted (coming into force in accordance with s. 334(4) of the amending Act) by Energy Act 2023 (c. 52), Sch. 22 para. 2(2)

F3 S. 16(1ZAA) inserted (coming into force in accordance with s. 334(4) of the amending Act) by Energy Act 2023 (c. 52), Sch. 22 para. 2(3)

F4 S. 16(1A) inserted by Energy Act 1983 (c. 25, SIF 44:1), s. 27(2)

F5 Words in s. 16(1A) substituted (coming into force in accordance with art. 1(2)-(5) of the amending S.I.) by The Nuclear Installations (Liability for Damage) Order 2016 (S.I. 2016/562), arts. 1(5), 19(3)(a) (with art. 40)

F6 Words in s. 16(1A) substituted (coming into force in accordance with s. 334(4) of the amending Act) by Energy Act 2023 (c. 52), Sch. 22 para. 2(4)

F7 Words in s. 16(1A) substituted (coming into force in accordance with art. 1(2)-(5) of the amending S.I.) by The Nuclear Installations (Liability for Damage) Order 2016 (S.I. 2016/562), arts. 1(5), 19(3)(b) (with art. 40)

F8 Words in s. 16(2) inserted (coming into force in accordance with art. 1(2)-(5) of the amending S.I.) by The Nuclear Installations (Liability for Damage) Order 2016 (S.I. 2016/562), arts. 1(5), 19(4)(a) (with art. 40)

F9 Word in s. 16(2)(a) inserted (coming into force in accordance with art. 1(2)-(5) of the amending S.I.) by The Nuclear Installations (Liability for Damage) Order 2016 (S.I. 2016/562), arts. 1(5), 19(4)(b) (with art. 40)

F10 S. 16(3)-(3F) substituted for s. 16(3) (coming into force in accordance with art. 1(2)-(5) of the amending S.I.) by The Nuclear Installations (Liability for Damage) Order 2016 (S.I. 2016/562), arts. 1(2), 20(2) (with art. 40)

F11 Words in s. 16(3)(a) inserted (coming into force in accordance with s. 334(4) of the amending Act) by Energy Act 2023 (c. 52), Sch. 22 para. 2(5)

F12 Words in s. 16(3B) inserted (coming into force in accordance with s. 334(4) of the amending Act) by Energy Act 2023 (c. 52), Sch. 22 para. 2(6)(a)

F13 Word in s. 16(3B) inserted (coming into force in accordance with s. 334(4) of the amending Act) by Energy Act 2023 (c. 52), Sch. 22 para. 2(6)(b)

F14 Words in s. 16(3B) inserted (coming into force in accordance with s. 334(4) of the amending Act) by Energy Act 2023 (c. 52), Sch. 22 para. 2(6)(c)

F15 S. 16(3BA)-(3BE) inserted (coming into force in accordance with s. 334(4) of the amending Act) by Energy Act 2023 (c. 52), Sch. 22 para. 2(7)

F16 Words in s. 16(3C)(a) inserted (coming into force in accordance with s. 334(4) of the amending Act) by Energy Act 2023 (c. 52), Sch. 22 para. 2(8)

F17 Words in s. 16(3D)(b)(i) inserted (coming into force in accordance with s. 334(4) of the amending Act) by Energy Act 2023 (c. 52), Sch. 22 para. 2(9)(a)

F18 Words in s. 16(3D)(b)(ii) inserted (coming into force in accordance with s. 334(4) of the amending Act) by Energy Act 2023 (c. 52), Sch. 22 para. 2(9)(a)

F19 Words in s. 16(3D)(b)(iii) inserted (coming into force in accordance with s. 334(4) of the amending Act) by Energy Act 2023 (c. 52), Sch. 22 para. 2(9)(b)

F20 Words in s. 16(4) substituted (coming into force in accordance with art. 1(2)-(5) of the amending S.I.) by The Nuclear Installations (Liability for Damage) Order 2016 (S.I. 2016/562), arts. 1(2), 20(3)(a) (with art. 40)

F21 Words in s. 16(4) substituted (coming into force in accordance with art. 1(2)-(5) of the amending S.I.) by The Nuclear Installations (Liability for Damage) Order 2016 (S.I. 2016/562), arts. 1(2), 20(3)(b) (with art. 40)

F22 S. 16(5) omitted (coming into force in accordance with art. 1(2)-(5) of the amending S.I.) by virtue of The Nuclear Installations (Liability for Damage) Order 2016 (S.I. 2016/562), arts. 1(2), 20(4) (with art. 40)

F23 S. 16(6)(7) inserted (coming into force in accordance with art. 1(2)-(5) of the amending S.I.) by The Nuclear Installations (Liability for Damage) Order 2016 (S.I. 2016/562), arts. 1(5), 19(5) (with art. 40)

F24 S. 16(8) inserted (coming into force in accordance with art. 1(2)-(5) of the amending S.I.) by The Nuclear Installations (Liability for Damage) Order 2016 (S.I. 2016/562), arts. 1(2), 20(5) (with art. 40)

Modifications etc. (not altering text)

C1 S. 16(1)(1A): functions made exercisable only after consultation with the Scottish Ministers (S.) (1.7.1999) by S.I. 1999/1750, arts. 1(1), 4, Sch. 3 (with art. 7); S.I. 1998/3178, art. 3