Office for Nuclear Regulation

Magnox Corporate – Inspection ID: 52741

Executive summary

Date(s) of inspection

  • October 2023

Aim of inspection

The intention of this ONR inspection is to conduct a Licence Condition (LC) 36 Organisational Capability inspection at Magnox Limited corporate centre on 4 and 5 October 2023.

The purpose of this intervention is for us to understand Magnox Ltd’s arrangements for organisational change and their implementation in Magnox Ltd’s current organisation.

It is also a precursor to our consideration of Management of Change arrangements being put in place in connection with the transfer of the AGRs from ENGL to Magnox Ltd.

Subject(s) of inspection

  • LC36 – Organisational capability – Rating: Green
  • Leadership & Management for Safety – Rating: Not rated

Key findings, inspector’s opinions and reasons for judgement made

This was a planned Licence Condition LC36 (Organisational Capability) compliance inspection. It was conducted by ONR’s Magnox Ltd corporate inspector, a specialist conventional health and safety inspector and an ONR specialist leadership and management for safety inspector.

The aim of the inspection was to consider Magnox Ltd’s management of organisational change, both in relation to the recent joining of Dounreay with Magnox Ltd and the transfer of EDFNGL’s AGR sites to the Magnox Ltd fleet and future organisational changes.

I conducted a number of sessions with senior representatives of the organisation.

I judge that the arrangements were suitable at the current time for a steady state. However, a number of change programmes are being planned. There was some uncertainty and a lack of clarity around the strategy and vision of this future organisational change. This is important to provide the framework to move towards the new organisational structures.

Advice was given that senior leadership need to address key essential corporate elements including leadership; accountability; governance and communication. ONR is seeking to continue early engagement and plans in order to fulfil their regulatory role and future interventions.

Conclusion

I judge that the overall inspection rating for LC36 for Magnox Corporate is green. The arrangements are adequate for the current steady state.

However, this intervention was timely because I identified that the combination of change programmes present a potential future challenge. Further regulatory engagement with Magnox Ltd will be required to consider the implementation of the current organisational change programme.

Magnox Ltd has many “change initiatives” in development and in train including Target Operating Model (TOM); AGR transition from EDFNGL; Blueprint. The Magnox Ltd strategy and vision is unclear albeit further information about the TOM was provided during the intervention. I acknowledge Magnox Ltd have started to address leadership. However, the number of change initiatives in train presents a potential challenge to the organisation in terms of band-width to be able to support the organisation and to progress and implement the planned changes effectively.