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UK govt twists and turns, as it pretends not to subsidise nuclear power

 Government and the nuclear industry have been in each others pockets ever since, as shown by the shocking collusion to downplay the Fukushima disaster, just hours after it happened….

the “no subsidy” claim is ludicrous in principle, given that taxpayers plays the same role for the nuclear industry as they did for the banks: they bail them out when things go wrong, an implicit subsidy…. burying the subsidies in an attempt to hide political embarrassment hinders proper debate.

Powering the UK: why the new electricity plan is all about nuclear, The Guardian, Damian Carrington, 11 July 11, The UK government has wanted new nuclear reactors for years, but a political contortion means explicit support is impossible. Result: a bewildering maze of measures

..first I want to ask how the UK came to place such a big bet on nuclear? It started a decade ago, when the then Labour government opted for a 2010 renewable energy target of 10% (which was missed) instead of 20%, placing the emphasis instead on nuclear power. Government and the nuclear industry have been in each others pockets ever since, as shown by the shocking collusion to downplay the Fukushima disaster, just hours after it happened.

“……Fast forward to this government and you have the unhappy coupling of the Conservative’s pro-nuclear stance and the LibDem’s once stern opposition. The mutant offspring of this was the pledge that new nuclear could go ahead providing there was no subsidy by taxpayers. That political contortion is the direct cause of the complexity of the measures: they have to support nuclear without explicitly supporting nuclear.

Of course, the “no subsidy” claim is ludicrous in principle, given that taxpayers plays the same role for the nuclear industry as they did for the banks: they bail them out when things go wrong, an implicit subsidy.

burying the subsidies in an attempt to hide political embarrassment hinders proper debate.

But it’s ludicrous in practice too. One of the measures in the reform package is a minimum (floor) price for carbon emissions, which favours nuclear so clearly as to have prompted a backbench LibDem revolt. Incidentally, ‘subsidy’ is defined as “a sum of money granted by the state or a public body to help an industry or business keep the price of a commodity or service low.” The fact that renewable energy generators might get a smaller slice of the same pie does not mean it is not a subsidy…….

It’s also worth noting that the pro-nuclear carbon floor price was delivered by the government far sooner and at a higher rate than expected. Contrast that with the cut in support for both solar power andmarine energy, and the delay in the main energy efficiency policy, the Green deal….

http://www.guardian.co.uk/environment/damian-carrington-blog/2011/jul/11/energy-electricity-market-reform-nuclear

July 11, 2011 - Posted by Christina Macpherson | general