Small Modular Nuclear Reactors

Debate between Lord Birt and Lord Hunt of Kings Heath

Wednesday 22nd January 2025 Lords Chamber

[Lord Hunt of Kings Heath (Lab)]

My Lords, if a Government were suddenly to say to Sizewell C, “We’re not going ahead with it”, that would have a devastating impact on our nuclear industry. We are not going to do that. We are moving towards a final investment decision. I do not recognise some of the figures that have been quoted in the media recently. It is 80% replication of Hinkley Point C, but because of that, a lot of the risks have already been ironed out.

[Lord Birt (CB)]

My Lords, I am attracted in principle to the idea of small-scale nuclear reactors scattered across the country on small sites and not just in nuclear submarines. But I have attended a number of meetings with the industry and have no clarity on the economics of the technology and how they compare with alternative paths to net zero. Does the Minister think that the economics are clear yet? If not, will the Government set them out?

[Lord Hunt of Kings Heath (Lab)]

My Lords, there are two points to make. Our analysis is that, overall, a renewable-led system complemented by flexible technologies, alongside technologies such as nuclear, will form the cheapest foundation for our decarbonised power grid. The value for money for SMRs is a very good question. That is precisely why the work that Great British Nuclear is doing will be so important and why it then has to feed into more general discussions within government about the finance involved.

Drax Power Limited: Ofgem Investigation

Debate between Lord Birt and Lord Hunt of Kings Heath

Monday 11th November 2024 Lords Chamber

[Lord Hunt of Kings Heath (Lab)]

My Lords, it is clearly very important that companies in receipt of the ROC payments—and, indeed, where their biomass electricity generation is classified as low-carbon—are acting according to sustainability criteria. The last Government issued a call for evidence in 2021 and then took two years to publish a strategy, in 2023. On the revision of sustainability criteria, they rather ducked it, saying that they would produce a cross-sector consultation this year, which never happened. We are now working on that. It is clear that sustainability criteria need to be kept up to date. We will ensure that that happens.

[Lord Birt (CB)]

My Lords, I have seen the deeply troubling allegations presented by a staff whistleblower to at least one member of the Drax board. It is troubling reading. They allege outright dishonesty, cover-up, offers of under-the-table bribes and naked threats by some senior Drax executives. Has the Minister seen this evidence, or, as already mentioned, KPMG’s internal investigations following the BBC “Panorama” report on Drax? If not, given the substantial public funding that Drax receives, will he ask to see them?

[Lord Hunt of Kings Heath (Lab)]

My Lords, I am grateful to the noble Lord. I have seen the media reports, but I have to say to the House that it is the responsibility of Ofgem to make judgments as to whether a company is applying the sustainability criteria. The issue before us today is data information. Clearly, Ofgem found that Drax was not complying with the requirements—hence the redress payment. However, it did not find that Drax was not complying with sustainability criteria.