Energy: Nuclear New Build Programme

Lord Foulkes of Cumnock Excerpts

Thursday 7th February 2013 Lords Chamber

Asked By

[Lord Foulkes of Cumnock]

To ask Her Majesty’s Government what action they are taking following the announcement of the withdrawal of Centrica from the nuclear new build programme.

[The Parliamentary Under-Secretary of State, Department of Energy and Climate Change (Baroness Verma)]

My Lords, the Government are determined to make the UK a leading destination for investment in new nuclear, which will play a key role in our future energy mix. The decision by Centrica reflects the company’s investment priorities and is not a reflection on UK government policy. New nuclear in the UK is a highly attractive proposition, as the recent purchase of Horizon Nuclear Power by Hitachi clearly shows. With the reforms that we are introducing in the Energy Bill, we are confident that we will see investment move forward. In the last quarter alone, alongside the successful sale of Horizon we had the granting of the first nuclear site licence in 25 years at Hinkley Point.

[Lord Foulkes of Cumnock]

My Lords, will the Minister confirm that Centrica is in fact the third firm to withdraw from the new nuclear build programme and that it cited as the reason uncertainty because the Government have not yet set the financial framework for new nuclear build? The Minister again today, like earlier in the week, sounds rather complacent on this. Can she give the House a clear indication of when the Government will make the decisions that will end this uncertainty?

[Baroness Verma]

My Lords, if we are talking about complacency, I would remind the noble Lord that his party was in Government for 13 years and failed to look at long-term investment in the energy sector. This Government have taken that on board. I remind the noble Lord that the decision that Centrica took was, as with the other two companies he mentioned, a commercial prioritisation and nothing to do with UK policy. If the noble Lord will allow me, I will quote Sam Laidlaw, chief executive of Centrica. He said the decision was about the prioritisation of its commercial priorities.