nuclear-news

UK’s secretive discussions on the unknown cost of new nuclear power

“Discussions are happening in smoke-filled rooms, over champagne and croissants, to establish a price that we will all pay,” said Ian Marchant, chief executive officer of the U.K.’s second-largest energy supplier SSE Plc (SSE), which dropped plans to develop reactors in
September. “There is no transparency as to what that price will be.”

“What you have is a whole bunch of people saying they know what a new reactor will cost and they don’t,” 

U.K. Seen Doubling Power Price to Guarantee New Reactor  Bloomberg News, By Kari Lundgren on July 13, 2012. “……The future of the U.K.’s nuclear industry will be decided on one number: the price the government’s willing to guarantee Electricite de France SA will get
for generating atomic power.

EDF and government officials will negotiate the so-called strike price
for new nuclear power plants by the end of the year. To ensure the
Paris-based utility makes a final decision on a new reactor in
southwest England, the U.K. must set a price between 95 pounds ($148)
and 105 pounds a megawatt-hour in 2020, double the level power trades
at today, according to Bloomberg New Energy Finance.

Britain, trying to replace aging plants and cut carbon dioxide
emissions, is one of just three western European countries still
pursuing plans for new nuclear stations following the Fukushima
disaster last year. Safety enhancements have contributed to rising
nuclear costs, leading to concern U.K. consumers may pay too much for
new reactors.

“Discussions are happening in smoke-filled rooms, over champagne and croissants, to establish a price that we will all pay,” said Ian Marchant, chief executive officer of the U.K.’s second-largest energy supplier SSE Plc (SSE), which dropped plans to develop reactors in
September. “There is no transparency as to what that price will be.”…….

“What you have is a whole bunch of people saying they know what a new reactor will cost and they don’t,” Liberum Capital’s Dominic Nash said by phone. “They have no idea of pre-building expenses, the raw material costs of steel, copper and cement eight years out, or of
construction costs in the U.K.”… http://www.businessweek.com/news/2012-07-12/u-dot-k-dot-seen-doubling-power-price-to-guarantee-new-reactor-energy

July 14, 2012 - Posted by Christina Macpherson | UK