As someone who has witnessed first hand the long-lasting devastation of a nuclear accident at Chernobyl, where signs of contamination remain to this day—even affecting Cumbria, when the disaster struck 25 years ago and 1,200 miles away—I believe that nuclear should be an option of last resort on risk and environmental grounds alone. The debate is not about environmental risk but about price and the coalition commitment not to subsidise any new nuclear.
The set price under negotiation would guarantee income levels for companies generating electricity. In other words, should the market price fall below the set price, taxpayers will be responsible for footing the bill. The contracts envisaged are expected to last up to 35 years, so nuclear power companies would be immune to future changes in the market demand for their products.
EDF’s recent statement that it, like Centrica, might abandon its nuclear reactor construction plans if the Government fail to pledge an adequate minimum electricity price demonstrates the extent to which future nuclear plants will rely on taxpayer funding. That subsidy by any other name shifts the notoriously high economic risk from nuclear corporations to the consumer and will be presented to Parliament as a non-reviewable contract that is likely to be binding for decades. That outrageous deal, forged behind closed doors, directly contravenes our coalition commitment and wholly pre-empts the energy market reform legislation and the proper democratic process of Parliamentary scrutiny.
I am a committed free marketeer as I believe that the free market is far and away the best method by which to allocate resources efficiently. Consumers should have the ultimate say on how products are delivered and at what price. I accept that the utopian free market ideal is sometimes not possible, especially when considering high-cost barriers to entry.