Uk’s Nuclear Future Hangs On Electricity Tax

Uk’s Nuclear Future Hangs On Electricity Tax

Sizewell A and B nuclear plants to be followed soon, EDF hopes, by Sizewell C. Image: By Helen Hanley, via Wikimedia Commons

The new British prime minister, Boris Johnson, must soon decide whether to save the UK’s nuclear future with an unpopular electricity tax.

Pressure is mounting on the UK’s new Conservative government to rescue its nuclear programme through an electricity tax, to throw a lifeline to the ailing French nuclear giant EDF, which wants to build more huge reactors in southern England despite its fragile financial plight.

The UK government has been consulting on what amounts to a proposed nuclear tax, which would require every electricity consumer to pay a levy of up to £50 a year on their bills while the new plants are being built, saving the beleaguered French company from having to finance the project itself.

Boris Johnson, the British prime minister, will need to weigh the disadvantages of abandoning plans to build the new reactors against the effect the new tax would have on the electoral backing of his new Conservative supporters. Many of those who voted for him in last month’s general election swept him to power by switching support from their traditional choice, the opposition Labour Party.

EDF is very keen to get an early open-ended financial commitment to fund its new station, Sizewell C on Britain’s east coast. That is planned to contain two 1,640 megawatt European Pressurised Water reactors. Critics say the longer the decision is delayed, the clearer it becomes that the reactors are too expensive and also unnecessary.

Losing support?

With renewables, particularly wind and solar, now cheap and popular, and nuclear stations always late and over budget, EDF is believed to be nervous that its own political support is ebbing away.

The electoral risks for Johnson are clear. The US version of the nuclear tax the British are proposing, called Early Cost Recovery, had American electricity customers paying up front for a nuclear station, the V.C. Summer plant in South Carolina. But consumers were left with a $10 billion (£7.7bn) debt for cancelled nuclear plants, and another $13.5bn (£10.4bn) in cost over-runs, with no reactors coming online.

And the chances of Sizewell C being cancelled are high, even if its costs are guaranteed. If a paper, Financing the Hinkley Point C project, just published, is correct, EDF is already in deep financial trouble.

According to its author, Steve Thomas, emeritus professor of energy policy at the University of Greenwich in London, it is impossible for EDF to finance the completion of its Hinkley Point C station in the West of England unless the UK government finds a way to pay the capital cost.

“The prime minister is reputed to have a fondness for elephants – especially if they’re white. EDF is pressing him hard to support another white elephant – a new nuclear power station at Sizewell”

The paper says the twin reactor power station under construction there is draining EDF’s finances so severely that it will not be able to pay the construction costs (approximately £11bn) it has yet to find.

Professor Thomas says EDF is facing financial collapse because of the priority it must give to expensive uprating of most of its 58 reactors in France in order to keep them running safely. As a result, if Hinkley Point is to be completed, it needs an open-ended financial commitment of both British and French public money.

His report says: “The sensible course is to abandon the plant now before more public money is wasted.”

Despite the fact that, as the report says, EDF is currently £37.4bn in debt without including many of its nuclear liabilities, it is still officially pressing ahead with plans not only to complete Hinkley Point C by 2025 but also to start Sizewell C construction in two years’ time.

This now seems dependent on Boris Johnson getting the British consumer to pay for it in advance.

Tax on all

Tom Burke, co-founder and chairman of the green think tank E3G, told the Climate News Network: “The prime minister is reputed to have a fondness for elephants – especially if they’re white.

“EDF is pressing him hard to support another white elephant – a new nuclear power station at Sizewell. To pay for this, EDF wants him to levy a nuclear tax on every electricity consumer in the country.

“They will be forced to pay EDF long before Sizewell is actually supplying electricity, and even if they get their own electricity from green providers who reject nuclear electricity, which, despite industry claims to the contrary, is not zero carbon.

“This expensive distortion of the electricity market will be sold under the incomprehensible banner of being a Regulated Asset Base (RAB) financing package to disguise the fact that it is simply a tax on voters to pay for an uneconomic source of electricity.

Little faith

“We know it is uneconomic because no-one in the banks or investment houses is willing to invest in it without such a measure, which is similar to the one the Chinese Government uses to force Chinese consumers to pay for wasteful energy mega-projects like the Three Gorges Dam.”

So far the government has made no official comment on what it proposes to do, following a public consultation last autumn on the RAB. Few outsiders have much faith in the government ministry responsible, the Department for Business, Energy and Industrial Strategy, which is supposed to make the decision. It is anyway likely to be referred to the prime minister since it is so politically important.

To some the department’s continued enthusiasm for nuclear power when all the evidence is that it is uneconomic is incomprehensible. However, building eight new nuclear stations remains official policy.

The department has a record of being badly wrong in its forecasts. For example, its claim that new nuclear stations were needed was founded on a prediction in 2010 that the UK would be consuming 15% more electricity by 2020. In fact demand has gone down year on year, and the country is consuming 15% less.

So by the department’s own measure new nuclear power stations are not needed. However, that has so far had no effect on policy. − Climate News Network

About The Author

brown paulPaul Brown is the joint editor of Climate News Network. He is a former environment correspondent of the Guardian and also writes books and teaches journalism. He can be reached at [email protected]


Recommended Book:

Global Warning: The Last Chance for Change
by Paul Brown.

Global Warning: The Last Chance for Change by Paul Brown.Global Warning is an authoritative and visually stunning book

This Article Originally Appeared On Climate News Network

Related Books

Drawdown: The Most Comprehensive Plan Ever Proposed to Reverse Global Warming

by Paul Hawken and Tom Steyer
9780143130444In the face of widespread fear and apathy, an international coalition of researchers, professionals, and scientists have come together to offer a set of realistic and bold solutions to climate change. One hundred techniques and practices are described here—some are well known; some you may have never heard of. They range from clean energy to educating girls in lower-income countries to land use practices that pull carbon out of the air. The solutions exist, are economically viable, and communities throughout the world are currently enacting them with skill and determination. Available On Amazon

Designing Climate Solutions: A Policy Guide for Low-Carbon Energy

by Hal Harvey, Robbie Orvis, Jeffrey Rissman
1610919564With the effects of climate change already upon us, the need to cut global greenhouse gas emissions is nothing less than urgent. It’s a daunting challenge, but the technologies and strategies to meet it exist today. A small set of energy policies, designed and implemented well, can put us on the path to a low carbon future. Energy systems are large and complex, so energy policy must be focused and cost-effective. One-size-fits-all approaches simply won’t get the job done. Policymakers need a clear, comprehensive resource that outlines the energy policies that will have the biggest impact on our climate future, and describes how to design these policies well. Available On Amazon

This Changes Everything: Capitalism vs. The Climate

by Naomi Klein
1451697392In This Changes Everything Naomi Klein argues that climate change isn’t just another issue to be neatly filed between taxes and health care. It’s an alarm that calls us to fix an economic system that is already failing us in many ways. Klein meticulously builds the case for how massively reducing our greenhouse emissions is our best chance to simultaneously reduce gaping inequalities, re-imagine our broken democracies, and rebuild our gutted local economies. She exposes the ideological desperation of the climate-change deniers, the messianic delusions of the would-be geoengineers, and the tragic defeatism of too many mainstream green initiatives. And she demonstrates precisely why the market has not—and cannot—fix the climate crisis but will instead make things worse, with ever more extreme and ecologically damaging extraction methods, accompanied by rampant disaster capitalism. Available On Amazon

From The Publisher:
Purchases on Amazon go to defray the cost of bringing you InnerSelf.comelf.com, MightyNatural.com, and ClimateImpactNews.com at no cost and without advertisers that track your browsing habits. Even if you click on a link but don't buy these selected products, anything else you buy in that same visit on Amazon pays us a small commission. There is no additional cost to you, so please contribute to the effort. You can also use this link to use to Amazon at any time so you can help support our efforts.

 

YOU MAY ALSO LIKE

enafarzh-CNzh-TWdanltlfifrdeiwhihuiditjakomsnofaplptruesswsvthtrukurvi

follow InnerSelf on

facebook icontwitter iconyoutube iconinstagram iconpintrest iconrss icon

 Get The Latest By Email

Weekly Magazine Daily Inspiration

LATEST VIDEOS

The Great Climate Migration Has Begun
The Great Climate Migration Has Begun
by Super User
The climate crisis is forcing thousands around the world to flee as their homes become increasingly uninhabitable.
The Last Ice Age Tells Us Why We Need To Care About A 2℃ Change In Temperature
The Last Ice Age Tells Us Why We Need To Care About A 2℃ Change In Temperature
by Alan N Williams, et al
The latest report from the Intergovernmental Panel on Climate Change (IPCC) states that without a substantial decrease…
Earth Has Stayed Habitable For Billions Of Years – Exactly How Lucky Did We Get?
Earth Has Stayed Habitable For Billions Of Years – Exactly How Lucky Did We Get?
by Toby Tyrrell
It took evolution 3 or 4 billion years to produce Homo sapiens. If the climate had completely failed just once in that…
How Mapping The Weather 12,000 Years Ago Can Help Predict Future Climate Change
How Mapping The Weather 12,000 Years Ago Can Help Predict Future Climate Change
by Brice Rea
The end of the last ice age, around 12,000 years ago, was characterised by a final cold phase called the Younger Dryas.…
The Caspian Sea Is Set To Fall By 9 Metres Or More This Century
The Caspian Sea Is Set To Fall By 9 Metres Or More This Century
by Frank Wesselingh and Matteo Lattuada
Imagine you are on the coast, looking out to sea. In front of you lies 100 metres of barren sand that looks like a…
Venus Was Once More Earth-like, But Climate Change Made It Uninhabitable
Venus Was Once More Earth-like, But Climate Change Made It Uninhabitable
by Richard Ernst
We can learn a lot about climate change from Venus, our sister planet. Venus currently has a surface temperature of…
Five Climate Disbeliefs: A Crash Course In Climate Misinformation
The Five Climate Disbeliefs: A Crash Course In Climate Misinformation
by John Cook
This video is a crash course in climate misinformation, summarizing the key arguments used to cast doubt on the reality…
The Arctic Hasn't Been This Warm For 3 Million Years and That Means Big Changes For The Planet
The Arctic Hasn't Been This Warm For 3 Million Years and That Means Big Changes For The Planet
by Julie Brigham-Grette and Steve Petsch
Every year, sea ice cover in the Arctic Ocean shrinks to a low point in mid-September. This year it measures just 1.44…

LATEST ARTICLES

image
Why the UK is so unprepared for the impacts of climate change
by Liam F. Beiser-McGrath, Lecturer (Assistant Professor) in Politics and Director of the PECC Lab, Royal Holloway University of London
The UK is woefully unprepared for the dangers of climate change according to a report from the Climate Change Committee…
Rows of solar panels are separated by a walkable space between them
Solar power and energy storage combo boosts reliability
by Matt Shipman-NC State
New research shows that when a power system combines energy storage and solar power generation, the end result is…
Climate change: what G7 leaders could have said – but didn't
Climate change: what G7 leaders could have said – but didn't
by Myles Allen, Professor of Geosystem Science, Director of Oxford Net Zero, University of Oxford
The four-day G7 summit in Cornwall ended with little cause for celebration from anyone worried about climate change.…
How world leaders' high-carbon travel choices could delay climate action
How world leaders' high-carbon travel choices could delay climate action
by Steve Westlake, PhD Candidate, Environmental Leadership, Cardiff University
When UK prime minister Boris Johnson took a one-hour flight to Cornwall for the G7 summit, he was criticised for being…
Maggot burgers can help to solve world hunger
by Paul Brown
Fancy maggot burgers for dinner? Eating animals and plants which revolt many of us could cut hunger caused by climate…
The idea of green growth'is flawed. We must find ways of using and wasting less energy
by Michael (Mike) Joy, Senior Researcher; Institute for Governance and Policy Studies, Te Herenga Waka — Victoria University of Wellington
As countries explore ways of decarbonising their economies, the mantra of “green growth” risks trapping us in a spiral…
Four reasons why G7 climate finance initiative will struggle against China's Belt and Road
Four reasons why G7 climate finance initiative will struggle against China's Belt and Road
by Karen Jackson, Senior Lecturer in Economics, University of Westminster
During the G7 summit in Cornwall, the group of nations unveiled a global initiative to help low and middle-income…
image
Electric heat pumps use much less energy than furnaces, and can cool houses too – here's how they work
by Robert Brecha, Professor of Sustainability, University of Dayton
To help curb climate change, President Biden has set a goal of lowering U.S. greenhouse gas emissions 50%-52% below…

 Get The Latest By Email

Weekly Magazine Daily Inspiration

New Attitudes - New Possibilities

InnerSelf.comClimateImpactNews.com | InnerPower.net
MightyNatural.com | WholisticPolitics.com | InnerSelf Market
Copyright ©1985 - 2021 InnerSelf Publications. All Rights Reserved.