19.02.13
Nuclear power subsidy deals could be extended to 40 years
Contracts with energy providers to build new nuclear power stations could be extended to 40 years, it has been reported.
The Government is proposing to sign contracts extended from the originally envisaged 20 years to at least 30, and possibly as long as 40 years, according to the Guardian.
The longer contracts would help keep costs below £100 per megawatt hour. Ministers believe that subsequent plants would become cheaper and more competitive and could fall to £55-56 a unit later in the programme.
The Coalition agreement had promised that new nuclear stations would only be built without public subsidy. However, ministers have modified that pledge to no “unfair” subsidies.
Martin Horwood, Lib Dem MP for Cheltenham, said the long term contracts were “ludicrous” because renewables should by then have come into their own.
The Department for Energy and Climate Change said in a statement: “No commitment has been made on commercial terms or a strike price. Ongoing discussions are focused on finding a fair, affordable deal, which represents value for money for consumers. Any agreement reached will be laid before parliament, and will include details of the strike price.”
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