Chair of the ECCC Tim Yeo MP is warning government that failure to deliver the new generation of nuclear plant could make it much more expensive and challenging to meet the country’s climate change target.
Yeo said: “The government seems to be crossing its fingers that private companies will deliver a fleet of new nuclear power stations on time and on budget.
“Ministers urgently need to come up with a contingency plan in case the nuclear industry does not deliver the new nuclear power stations we need.”
The report supports the government’s use of contracts for difference to help make new nuclear plant easier to finance, but raises concerns over a lack of transparency around the negotiations.
To provide value for money for consumers, the report says the strike price should not be higher than other low-carbon sources of energy, such as offshore wind, at around £100/MWh by 2020.
Yeo added: “Government needs to provide more clarity about exactly what forms of support new nuclear projects will receive and whether consumers, taxpayers or project developers will have to cough up if construction costs end up being higher than anticipated.”
The report also recommends that local authorities hosting new nuclear plant should be able to retain business rates, as they currently can for renewable energy projects.