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Government To Rip Up Rulebook And Subsidise New Nuclear Plants
Academics claim ministers are set to break promise not to write blank cheques in bid to reassure foreign investors
Monday 22 October 2012
Under a major policy U-turn being considered by ministers, the taxpayer would be left to cover the cost of budget over-runs or building delays at new nuclear plants. Costly setbacks are almost inevitable with such complex construction projects.
The proposals, which would break a long-standing Government promise never to subsidise the nuclear industry, are intended to reassure multi-national energy firms into investing in a new fleet of nuclear plants in Britain.
EDF Energy’s plans for a plant at Hinkley Point in Somerset are considered the most advanced.
Last night environmentalists accused the Government of plotting to squander public money to protect the profits of energy giants.
Richard George of Greenpeace said: “Promising no subsidy for the nuclear industry, while plotting to give a massive subsidy to the nuclear industry, is a new level of betrayal for this Government and its shambolic energy strategy. Offering to pick up the tab when new reactors go over-budget would commit billions of pounds of taxpayers’ money to a desperate attempt to swim against the tide of history.”
In an interview earlier this month, John Hayes, the Energy Minister, hinted at some form of nuclear subsidy, saying: “There are issues around underwriting risk. It’s an argument that’s been put up many times by people from outside government. That’s something I will certainly look at and I do think there’s an argument for considering how you imbue the market with sufficient investor confidence to get to where you want to go.”
