Nuclear Power

Debate between David Mowat and Baroness Ritchie of Downpatrick

Wednesday 4th July 2012 Westminster Hall

[Ms Ritchie]

I thank the right hon. Gentleman for his intervention, and I agree with that thesis. I want to make a little progress.

[David Mowat (Warrington South) (Con)]

I, too, congratulate the hon. Lady on securing this debate. She is talking about the level of subsidy in relation to the current Bill and in general. Does she not agree that the level of subsidy that will be proposed for nuclear is considerably lower than that for solar, offshore wind or, indeed, onshore wind? How does that equate with her concerns about fuel poverty, because that seems a little odd?

[Ms Ritchie]

I thank the hon. Gentleman for his intervention. I take what he says, but I am obviously putting forward a different thesis. I disagree with his fundamental point, but perhaps I can provide some explanation, if he will let me continue.

The Government are clearly going in the face of the energy industry, given the decision by various companies to pull out of the future nuclear programme. Even EDF, the only remaining player in the game, has seemingly adopted a lukewarm approach to the new build programme and has postponed its commitment to it, saying only that it will decide at the turn of the year. To answer the hon. Gentleman’s question on cost, I come from the position of favouring renewables; I have a strong belief in them, as opposed to nuclear, given the geographical position that I come from. EDF’s approach is hardly a ringing endorsement, from the only company that has even tentatively committed to the future nuclear programme. It seems that no serious player in the industry thinks that future investment can go ahead without a serious public subsidy. Indeed, no nuclear plant has ever been developed without large amounts of public subsidy, and it is obvious that the companies will not enter into the future nuclear programme without such assurances.

The Government’s proposal in the draft Energy Bill for contracts for difference appears to be little more than a subsidy through the back door. CFDs allow utility firms to levy a top-up charge should the price fall below a certain level. If the cost of nuclear power is to be cheaper than the current market rate, or at least competitive, as EDF and the Government maintain, why is the complex mechanism of CFDs required at all? In the words of Keith MacLean, policy director of Scottish and Southern Energy, which has itself pulled out of the future nuclear programme:

“This complex and messy CFD policy looks like an attempt to try to hide the state aid from the European Commission and the subsidy from political opponents of new nuclear.”

[David Mowat]

CFDs are necessary because nuclear is considerably more expensive than either coal or gas, even though it is many multiples cheaper than most large-scale renewables. I find the hon. Lady’s position difficult to understand, given her concern about fuel poverty.

[Ms Ritchie]

I thank the hon. Gentleman for his intervention. I have made it clear that I am opposed to nuclear power, which, as he has said, is very expensive—it has required Government subsidy to sustain it, and I fundamentally disagree with that.