nuclear-news

Nuclear power station risks hitting taxpayers with £20bn bill

Plans for a power station at Wylfa could be derailed by government rules

Telegraph, Matt Oliver, INDUSTRY EDITOR, 13 May 2024 

Plans for a large nuclear power station on the Welsh island of Anglesey risk being derailed by government rules that will add an estimated £20bn to the national debt, insiders have warned. 

Efforts to develop a gigawatt-scale scheme at Wylfa are on the agenda this week as Andrew Bowie, the minister for energy security, meets representatives from the South Korean state nuclear company Kepco. 

The company is among several thought to be in the running to build a plant at Wylfa, with a consortium that includes US nuclear giant Westinghouse also putting forward proposals.

But one senior industry source warned there were concerns about the willingness of ministers to sign off on such a large project ahead of the general election, with the next government expected to be saddled with challenging budgetary constraints.

They blamed accounting rules which will force the British state to add the project’s full cost to the national debt, even if it only holds a minority stake in the scheme. 

This is owing to the Government’s position as the ultimate guarantor if the project goes wrong. 

There are fears it could put ministers off from backing a scheme at the Wylfa site, which has just been reacquired by the Government.

No decisions about the potential project have been taken yet but the scheme’s budget is widely expected to be in the region of £20bn. Britain’s debt pile is currently 98.3pc of GDP, or almost £2.7 trillion, as high interest rates push up the cost of Government borrowing.

The industry source said: “The main barrier right now is that if you build gigawatt-scale units, you have to put them on the Government balance sheet.

“Whoever is in power after the next election is going to have to grapple with that balance sheet – and are they really going to do this?

“It is something that is being looked at now.”………………….. https://www.telegraph.co.uk/business/2024/05/13/anglesey-nuclear-plant-risks-saddling-taxpayers-with-bill/

May 16, 2024 - Posted by Christina Macpherson | business and costs, politics, UK