nuclear-news

UK’s new nuclear fleet may be simply unaffordable

UK nuclear plans flicker over cost By: Tracey Boles Express UK, February 10, 2013   ENERGY secretary Ed Davey warned yesterday that he will not do a deal to fund new reactors “at any price” as fears mount that ­interested utilities cannot afford to build them.French state-owned utility EDF Energy and the Government are ­negotiating a “strike price” for the new reactors, the unit cost of electricity which would underpin investment plans for EDF’s two reactors at Hinkley Point in ­Somerset.

Keeping the price from being set high would involve taxpayer subsidy. Davey said yesterday he was seeking a “fair price for the consumer”.

Earlier this month, EDF’s partner Centrica withdrew from the UK’s planned nuclear ­programme because of increasing costs and ­delays. EDF has also been seeking Chinese state investment to little avail so far…… EDF have always argued that the price must be fair to both sides or it will not be sustainable. “It has to be high enough to encourage investors,” said a source close to negotiations.

Another senior industry source said: “EDF has a huge debt pile in France, and Paris will want to be sure the UK is a good place to put money more than their own market.” …

February 11, 2013 - Posted by Christina Macpherson | business and costs, UK