Claim your free 2010 double sided wall chart
Sir David King has proposed the charge as a way of ensuring that a resurgent nuclear industry — which has always run at a huge loss — could get three or four decades of guaranteed profit on new reactors.
The Sunday Times has obtained transcripts of a meeting King held with senior nuclear industry executives at which he said that Britain should aim to get 35% of its future electricity from nuclear generation. “I would say getting 30%- 35% of our power from nuclear would be probably optimal,” he said.
At present 20% of Britain’s electricity comes from nuclear plants, but the reactors providing it are old and most will be decommissioned by 2015. There is no legal obstacle to prevent power companies building replacements. But the industry’s disastrous financial history and the uncertainty over future electricity prices mean that investors would never take the risk.
King’s charge — provisionally named the “security of supply levy” — would remove that uncertainty by giving nuclear operators a premium on every unit of electricity generated.
The same system applies to electricity generated from renewable sources and is responsible for the rapid and controversial expansion of wind farms. Under the system they can claim nearly three times the market value of the electricity they generate, an extra cost ultimately met by consumers.
“For the nuclear new-build industry to go ahead, they would need some assurance that they would not be faced with short-term competition,” King said.
King, who is one of Blair’s more trusted advisers, suggests that the same system should now be adapted to fund the far greater costs of building a new generation of reactors.
The disclosure comes ahead of an announcement by Blair of a review of Britain’s energy policy. In a speech on Tuesday he will warn that Britain could face serious power shortages over the next 15 years unless additional power stations are built.
It will reinforce concerns that the prime minister has made up his mind that a new generation of nuclear power stations is the best way to secure Britain’s energy supplies and meet targets for reducing carbon emissions.
Industry sectors news at a glance. Interactive heatmap, video and podcast
Everything the Business Traveller needs to know to make a better trip
Get ready for the winter sports season, with our resort guides and snow reports
We are backing British business, what is the confidence of the nation and what businesses are succeeding?
Growing demand for energy, oil that is harder to reach and the rise of carbon dioxide emissions. We examine the energy challenge
In this special section we explore new food trends to help improve your dinner party and impress guests
Enjoy further reading from Travel to Fashion, Business to Sport, discover more
Shortcuts to help you find sections and articles
1998
£47,955
2004
£56,950
Essex
Check your free Experian credit report before applying
Car Insurance
c. £70,000
The Duke of Edinburgh’s Award
Windsor
Competitive
Hickman and Rose
London
Southwark County Council
£100,000
Home Office
Liverpool
Moments from Battersea Park.
For sale with Winkworth
Find out about shared ownership.
See your free Experian credit report beforehand
Book now for Free Stateroom Upgrades, Free parking at Southampton & Free Onboard Spend!
Get covered on your travels with a superb range of policies at great prices. Visit InsureandGo.com
Wintersun - inspiration for your winter holiday
Contact our advertising team for advertising and sponsorship in Times Online, The Times and The Sunday Times, or place your advertisement.
Times Online Services: Dating | Jobs | Property Search | Used Cars | Holidays | Births, Marriages, Deaths | Subscriptions | E-paper
News International associated websites: Globrix Property Search | Milkround
Copyright 2010 Times Newspapers Ltd.
This service is provided on Times Newspapers' standard Terms and Conditions. Please read our Privacy Policy.To inquire about a licence to reproduce material from Times Online, The Times or The Sunday Times, click here.This website is published by a member of the News International Group. News International Limited, 1 Virginia St, London E98 1XY, is the holding company for the News International group and is registered in England No 81701. VAT number GB 243 8054 69.