The Government is considering fresh tax breaks for Britain’s nuclear power industry that could smooth the way for the construction of a new generation of UK reactors, The Times has learnt.

Whitehall insiders have told The Times that officials at the Department for Energy and Climate Change have been studying the possibility of an exemption for nuclear electricity from the climate change levy, a tax on industrial energy consumption that was created to boost energy efficiency.

The levy, which was introduced in 2001, raises an estimated £1 billion a year for the Treasury. Suppliers pay the levy on electricity provided to businesses to Customs & Excise and then pass on the costs to customers.

Other low-carbon sources of electricity, such as wind energy, are already exempt from the levy, but it draws no distinction between low nuclear and higher-emitting coal or gas generation.

At last a sensible decision. They\’re going to stop taxing what they shouldn\’t have been taxing in hte first place.

It was always a complete nonsense that nuclear should be paying the climate change levy. Especially since Solar PV doesn\’t pay it but has three times the emissions of nuclear.

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