Will the taxpayer fuel cost of new nuclear projects?
A group of leading energy academics yesterday claimed the Government is considering going back on its pledge never to subsidise nuclear power.
Any policy change would effectively mean taxpayers’ money being given to French energy giant EDF to help it build a new reactor at Hinkley Point in Somerset. It would also boost the chances of a new nuclear power station at Oldbury in Gloucestershire.
An open letter said: “Energy Minister John Hayes is now considering a major U-turn in energy policy by giving a blank cheque to nuclear by ‘underwriting’ construction costs over-runs.
“This is despite the fact that the key to nuclear is its spiralling cost over-runs.”
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The nine academics, including professors at Oxford, Warwick, Sussex and Birmingham universities, say two nuclear reactors are being built in Western Europe at the moment.
The letter concludes: “Whatever one’s view of the risks and benefits of nuclear energy, it is clear that construction cost over-runs are highly likely.
“The taxpayer must not end up footing a multi-billion pound bill for what seem to be inevitable nuclear construction over-runs.”
They were responding to comments by Mr Hayes earlier this month that he would look at “issues surrounding underwriting risk”.
But a spokesman for the Department of Energy and Climate Change said: “We are in preliminary discussions with EDF and Centrica about the potential financial terms on which they might go ahead with their Hinkley Point C project.
“Our focus will be on delivering a fair deal for consumers
“No commitments or final decisions have been made.”
Comments
by MoeXXX
Tuesday, October 23 2012, 8:34PM
“It makes some sense for the government to cover the costs of huge projects like this - the state can shoulder much higher risks and the low cost of borrowing means they can do it cheaper than anyone else.
However, I would hate this to turn into another exercise in public spending for the benefit of private profit, particularly as the profit would go to a foreign state-owned company in this case.”
by jezer
Tuesday, October 23 2012, 8:28PM
“"No commitments or financial decisions have been made". This means they have made up their minds but they are not telling us yet.”
by Dashers
Tuesday, October 23 2012, 12:39PM
“How does it matter if we pay for it via taxes or our energy bills? We'll be paying for it one way or the other.”