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In UK, consumers on hook for cost overruns at nuclear plants

Consumers on hook for cost overruns at nuclear plants, Emily Gosden, Times 23rd July 2019 ,Energy consumers and taxpayers could have to pay for cost overruns at new nuclear plants after the government backed a funding model proposed by EDF.

The business department said last night it believed the “regulated asset
base” model that the French energy giant wants for its proposed Sizewell
plant in Suffolk could reduce consumer bills compared with the subsidy
contract used to back the £20 billion Hinkley Point plant EDF is building
in Somerset.
A consultation document published last night confirms that
consumers would, however, be asked to start paying for the plants on energy
bills while they were still under construction and to share in the risks of
cost overruns.
In the case of an extreme overrun, the government –
effectively the taxpayer – could either have to step in and pay the extra
cost or scrap the project and pay compensation to investors. Under the
regulated asset base model, the developer would receive a regulated price
to give it a return on its investment expenditure, including during the
construction period, and this would be levied on energy bills.

https://www.thetimes.co.uk/article/17cbe1b8-acbd-11e9-b657-11944f524f2a

July 25, 2019 - Posted by | business and costs, politics, UK

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