Last amended by Nuclear Installations (Liability for Damage) Order 2016 (SI 2016/562) in 2016. Brought into force the revised Paris and Brussels Convention liability amounts following ratification; increased the minimum operator liability to €700 million and extended Government cover to €1,500 million per occurrence.
Independent editorial summary — not the official statute text. Read the official version on legislation.gov.uk.
Summary
The Nuclear Installations Act 1965 is the primary UK statute governing the safety licensing of nuclear installations and nuclear liability. It requires any person who intends to use a site in the UK for the installation or operation of certain types of nuclear reactor or for the processing, reprocessing, or storage of nuclear fuel to obtain a nuclear site licence from the Office for Nuclear Regulation (ONR), formerly the Nuclear Installations Inspectorate. The ONR may attach conditions to the licence covering design, construction, commissioning, operation, and decommissioning. The Act also implements the UK's obligations under the Paris Convention on Third Party Liability in the Field of Nuclear Energy (1960) and the Brussels Convention Supplementary to the Paris Convention (1963) by imposing a comprehensive strict liability regime: the operator of a licensed site is the sole person liable to third parties for damage arising from a 'nuclear occurrence' at the site, regardless of fault. The liability is channelled to the licensee, preventing victims from suing subcontractors or equipment suppliers separately. The amount of liability was capped (with the government covering excess) but has been updated following revisions to the Paris and Brussels Conventions in 2004, implemented by the Energy Act 2004 and subsequent regulations.
Key Points
- Section 1: prohibition on unlicensed nuclear sites — no person may use a site for the purpose of installing or operating a nuclear reactor (other than an exempt reactor) or for certain nuclear processing activities unless a nuclear site licence has been granted by the ONR
- Section 3: licence conditions — the ONR may attach to a nuclear site licence such conditions as it thinks necessary or desirable in the interests of safety; conditions typically cover design, construction, commissioning, operation, and decommissioning
- Section 7: strict liability for nuclear occurrences — where a nuclear occurrence happens at a licensed site, the licensee is liable to pay compensation for death or injury to any person, or damage to any property caused by the occurrence; liability is strict (no need to prove fault) and channelled exclusively to the licensee
- Section 12: government liability — the Secretary of State is liable to pay compensation in respect of any nuclear occurrence where the licensee's liability exceeds their insurance cover, or where the occurrence is not covered by the licensee's policy; the government maintains an international liability fund under the Brussels Convention
- Section 15: limitation period — claims must be brought within 30 years of the nuclear occurrence; this extended period recognises the potential for latent radiation-related injuries
- Section 19: insurance — a licensee must maintain insurance or other financial security sufficient to meet their liabilities; the amount is set by the Secretary of State by statutory instrument
Parts & Sections
Amendments History
2004 — Energy Act 2004
Implemented the 2004 revision protocols to the Paris and Brussels Conventions, significantly increasing the operator's minimum liability amount, extending the categories of compensable damage (including environmental damage and preventive measures), and adjusting the limitation period for certain claims.
2016 — Nuclear Installations (Liability for Damage) Order 2016 (SI 2016/562)
Brought into force the revised Paris and Brussels Convention liability amounts following ratification; increased the minimum operator liability to €700 million and extended Government cover to €1,500 million per occurrence.
Frequently asked questions
- Do I need a licence to operate a nuclear reactor in the UK?
- Under the Nuclear Installations Act 1965, any person intending to install or operate a nuclear reactor, or process, reprocess, or store nuclear fuel, must obtain a nuclear site licence from the Office for Nuclear Regulation (ONR). Using a site for these purposes without a licence is prohibited, subject to specific exemptions for certain types of reactors.
- What conditions can be attached to a nuclear site licence?
- The Office for Nuclear Regulation (ONR) may attach conditions to a nuclear site licence that it considers necessary or desirable for safety. These conditions typically cover the design, construction, commissioning, operation, and decommissioning of the installation. The ONR can vary, revoke, or add new conditions as circumstances require, and breaching a licence condition is a criminal offence.
- Who is legally liable if a nuclear accident causes damage to people or property?
- The Act imposes a strict liability regime where the operator of a licensed site is the sole person liable to third parties for damage arising from a nuclear occurrence. This liability is channelled exclusively to the licensee, meaning victims cannot sue subcontractors or equipment suppliers separately. The licensee is liable regardless of fault for death, injury, or property damage caused by the occurrence.
- How long do I have to make a claim after a nuclear incident?
- Claims for compensation arising from a nuclear occurrence must be brought within 30 years of the event. This extended limitation period is designed to recognise the potential for latent radiation-related injuries that may not become apparent immediately. The Energy Act 2004 also adjusted limitation periods for certain claims following revisions to international conventions.
- What happens if the damage costs exceed the nuclear operator's insurance?
- If a licensee’s liability for a nuclear occurrence exceeds their insurance cover, or if the occurrence is not covered by their policy, the Secretary of State is liable to pay compensation for the excess. The government maintains an international liability fund under the Brussels Convention to support this obligation. The minimum operator liability was increased to €700 million, with government cover extending to €1,500 million per occurrence.