04.03.13
MPs urge ‘Plan B’ for energy policy
UK energy policy urgently needs a ‘Plan B’ in case the next generation of nuclear plants are not delivered on time, according to a committee of MPs.
The Energy and Climate Change Committee (ECCC) published a new report today saying that any failure by the private companies on whom the Government is relying to deliver new nuclear will end up making it far harder to meet the country’s climate targets.
Committee chair Tim Yeo said: "The Government seems to be crossing its fingers that private companies will deliver a fleet of new nuclear power stations on time and on budget. Ministers urgently need to come up with a contingency plan in case the nuclear industry does not deliver the new nuclear power stations we need."
The report acknowledges that the ‘contracts for difference’ will help make new nuclear plants easier to finance, but it lists concerns about a possible lack of transparency around the negotiations.
In order to provide value for money for energy consumers, the committee’s report says that the ‘strike price’ should not be higher than other low-carbon sources of energy such as offshore wind (around £100/MWh by 2020).
Yeo added: “Government needs to provide more clarity about exactly what forms of support new nuclear projects will receive and whether consumers, taxpayers or project developers will have to cough up if construction costs end up being higher than anticipated."”
The committee also urges ministers to allow local authorities hosting new nuclear plant to be able to retain business rates, as they can for renewable energy projects.
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