Liability of suppliers to nuclear power plants in Western Europe

Under the channelling principle enshrined in the Paris Convention (1960 with additional protocol 1964) all liability in the case of nuclear accidents is channelled to the operator. No other person is liable for damage caused by nuclear incidents at installations. Suppliers are usually exempt from liability. This chapter examines the question of when suppliers of goods and services to nuclear power plants (not carriers) can be held liable for damage in Western Europe in spite of the privileged position under the Convention. A third party not directly connected with the operation of the plant is not liable for negligent behaviour which leads to a nuclear incident. Two reasons are given for adopting this channelling principle - first it assists in obtaining compensation for damages by eliminating lengthy court actions to establish liability and second it encourages the production of nuclear energy without expensive or unobtainable incident insurance. There are two relatively unlikely situations when the operator can have recourse against third parties, and one exception to the channelling principle about damage to property. The situation for cross-border damage under the Paris Convention is explored in the next section. Various situations are used as examples. (U.K.)