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UK coalition govt betraying promises on nuclear power

Firstly …transfers the huge risks associated with nuclear power to taxpayer….Secondly…planning to rig the carbon trading market in a move that will encourage the creation of nuclear power plants.”

(UK) Ministers are breaking their promise on subsidies for nuclear power,  Left Foot Forward,  15 Feb 2011“……. the Coalition Agreement on nuclear power. It’s pretty clear – no taxpayers’ money for new nuclear power. Energy secretary Chris Huhne – who in opposition called nuclear power a “failed technology” – elaborated on this shortly after taking the job, telling The Times (£):

“I have explained my position to the industry and said public subsidies include contingent liabilities.”

But Left Foot Forward understands that via complicated, structural measures, the government is planning on green-lighting a multi-billion pound taxpayer giveaway to the nuclear industry.

Here’s how: Firstly, Chris Huhne has:

“…agreed to reduce the risk to industry of building nuclear plants by setting a fixed price for disposal of waste.”

This transfers the huge risks associated with nuclear power to taxpayers. As the staunchly pro-nuclear Oxford Professor of Energy Policy, Dieter Helm, explained back in 2008:

“It’s a fixed-price contract for the government to take the waste. The government absorbs the final-end risk.”

Secondly, as The Sunday Times explained (£) back in May:

“The government is planning to rig the carbon trading market in a move that will encourage the creation of nuclear power plants.”

Peter Atherton, head of European utilities at Citigroup, said:

“Putting a floor under the power price would effectively transfer risk from the nuclear developer to the electricity consumer.”

That sounds a lot like a subsidy. Today the Financial Times published new findings showing the nuclear industry could receive a £3.43 billion windfall this way between 2013 and 2026 via a plan outlined in Mr Huhne’s new energy market reform proposals…..

The government should find ways to avoid channelling our money into the black hole that is the failing nuclear industry, especially at a time when Ministers say there is such need for cut backs. Green campaigners including WWF point out windfalls for nuclear utilities could be avoided via a windfall tax on those companies to claw back these revenues.

Ministers are breaking their promise on subsidies for nuclear power | Left Foot Forward

February 15, 2011 - Posted by Christina Macpherson | politics, UK