Government warned off secret nuclear subsidies
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.Chris Huhne has been warned that the Energy Department, which he runs, needs to be "upfront" about whether the Government proposes to subsidise new nuclear power stations. The Coalition plans 10 new reactors, although before the election it was Liberal Democrat policy to oppose them. Maintaining and cleaning up after Britain's older nuclear stations cost billions, and the Government said that the new ones must pay their own way.
However, a report out today by the Commons Energy and Climate Change Committee warned against hidden subsidies that could distort the electricity market.
When the Cabinet meets today, it is expected to endorse an ambitious plan by Mr Huhne to put the country on target to cut carbon emission by 2030. To encourage other forms of energy production, the Government is proposing contracts under which there would be a fixed price for electricity from non-carbon sources.
The MPs say this would work for nuclear power, but might not for environmentally friendly forms of electricity generation such as offshore wind farms, which would make the concession a hidden subsidy for nuclear power.
Tim Yeo, the committee's chairman, said: "Ministers believe that nuclear could play a key role in keeping the lights on and meeting our climate change targets – but they don't want to own up to supporting it.
"This is understandable given the promise they made not to subsidise nuclear, but it would be deeply irresponsible to skew the whole process of electricity market reform simply to save face. The Government must be upfront about the support it is giving to nuclear and not hide subsidies in a one-size-fits-all design for long-term energy contracts."
Doug Parr, policy director for Greenpeace, said: "The committee has exposed the truth about Government energy plans – it's about subsidising nuclear. Nuclear power has always needed taxpayer handouts to make it profitable."
A Department of Energy and Climate Change spokesman said: "The Government's position that there will be no specific subsidy for nuclear is absolutely clear. Electricity market reform will provide support to all forms of low-carbon generation, not just nuclear."
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments