There will be outrage of course

British families could be forced to pay up to £227 extra on their annual energy bills to help to fund a new generation of nuclear power stations under plans proposed by the French company expected to build most of them.

EDF Energy, which wants to build four reactors in Britain at a cost of about £20 billion, was accused of holding the Government to ransom last night, after an executive told The Times that none would be built unless the Government agreed to underwrite part of the cost. Speaking before a government announcement on Britain’s energy future on Monday, Humphrey Cadoux-Hudson, managing director of EDF Energy’s new nuclear business in Britain, said the nuclear programme would proceed only if the Government ensured that consumers paid more for electricity from fossil fuels, such as coal and gas, which is cheaper but produces more greenhouse gas, making nuclear more competitive.

To fix the market in favour of nuclear energy he proposed a minimum price on the permits that energy companies need to buy to emit carbon dioxide. The cost of permits was too low — at about €14 per tonne — for energy companies to be encouraged to invest in nuclear rather than gas-fired power stations, which are far cheaper and quicker to build.

He said that a price of €25-35 per tonne of carbon dioxide was necessary to make construction ofnuclear stations profitable. “A floor price for carbon is needed … The waste product of fossil fuel generation needs to have a cost,” he said.

And guess who the outrage will come from? Yes, that\’s right, the very same people who scream that we must have feed in tariffs for solar PV.

That solar PV that, by the German figures, costs over $1,000 per tonne of CO2 not emitted.

€35 per tonne really seems very cheap as an option, doesn\’t it?

But good luck looking for Greenpeace of FoE to tell you that.

4 comments on “There will be outrage of course

  1. Bills of zero? Why would that be? Just because you aren’t getting any electricity doesn’t mean your bills will be zero. There’s all those carbon offsets to pay for, don’t you know?

  2. Sorry I don’t get where they come up with that figure from. Supposing there are 15 million households in the UK. That means we are paying about 3.5 billion pounds more. But the reactors only cost 20 billion. Which means if we were paying off their interest bill, they would be paying 17% – and that does not count the money that comes from actually generating and then selling electricity.

    What haven’t I understood?

  3. We could guess who the outrage will come for, or simply read the article and find out. It’s Matthew Sinclair, the Taxpayer’s Allliance blogger.

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