The UK must “clean up” nuclear costs to consumers, says Infrastructure Chief

The UK government should “clean up” with consumers about the impact of new nuclear power plants on their energy prices, the infrastructure chief warned.

In an interview with the Financial Times, Sir John Armitt, chairman of the National Infrastructure Commission, said that the new nuclear power plant “takes a long time to deliver” and “when construction begins, it will inevitably be invoiced in the short term. It costs money. “

“Given the choices it made, it’s important to be transparent about the amount of consumers the government is being asked to pay for new nuclear weapons, especially if it begins to bite before energy prices fall. Let’s do it, “he said.

Britain’s Prime Minister Boris Johnson has ordered ministers to pursue the expansion of Britain’s nuclear energy at “warp speed” to reduce its reliance on oil and gas imports. There are plans for up to eight new plants, the first of which is expected to be the £ 20 billion Sizewell C project on the Suffolk coast.

Not only is the UK government investing up to £ 1.7 billion in taxpayer money in Sizewell C, its construction is funded by a RAB model in which taxpayers subsidize the project through an additional charge for energy charges under construction. Will be done.

The UK government has announced that for each new power plant built at RAB,A few pounds a year at mostFor a typical household in the early stages of construction, it peaks at £ 12 a year in the full construction stage.

However, pressure group Stop Sizewell C argued that the £ 12 figure could only be achieved “under the most optimistic scenario of impact assessment” by the government.

“Overall payments by households under construction can increase up to three times between the best and worst scenarios from £ 148 to £ 431, not including inflation,” he said. increase.

Armit’s intervention arises because the new nuclear program has been plagued by years of delays and cost overruns.

John Armitt: “Given the choices it has made, it will be important for the government to be transparent about the amount of consumers being asked to pay for new nuclear weapons.” © Richard Gardner / Shutterstock

On Friday, French state power company EDF could increase the cost of the new Hinkley Point C nuclear power plant under construction in southwest England by another £ 3 billion, for a total of £ 25 billion to £ 26 billion. I warned.Compared to this Estimated £ 18 billion When I received the go-ahead in 2016. It is also up and running at least eight years late.

Armit added: “It’s clear that no developer is ready to build a new major nuclear power plant without government support … Using the RAB model, these schemes are implemented, but energy rather than taxes. The decision to cost the price means that the consumer pays in advance. “

The government said: Large projects funded under this scheme will add up to a few pounds a year to typical household energy bills in the early stages of construction, averaging around £ 1 a month for the entire period. That is very clear to the general public. Construction stage of the project. “

The RAB model is from London £ 4.2bn Tideway Super Sewer, A 16-mile tunnel below the Thames. Consumers pay an average of £ 17 a year on their invoices, which could go up to £ 25.

Tideway’s deals have proven to be in favor of directors and investors who have received £ 16m over the last six years. Investors received £ 193.2 million interest and £ 54.5 million in capital repayments for £ 1.3 billion in equity and loans over a five-year period. They will receive an additional £ 57.7m interest payments postponed to 2021 in the light of the pandemic.

The UK must “clean up” nuclear costs to consumers, says Infrastructure Chief

Source link The UK must “clean up” nuclear costs to consumers, says Infrastructure Chief

Related Articles

Back to top button