Energy: Nuclear Power

Lord Jenkin of Roding Excerpts

Thursday 29th November 2012 Lords Chamber

[Baroness Verma]

My Lords, the noble Lord of course knows that we are very keen to ensure that we have a diverse energy mix, and part of that will be new nuclear. He also knows that some processes take a little longer than others. However, new nuclear will help to diversify our electricity supply. Each nuclear power plant will be able to give reliable base-load electricity to around 6 million homes per year. We look forward to working alongside all our energy providers, including nuclear.

[Lord Jenkin of Roding]

My Lords, the question of new nuclear is slightly overshadowed because, in America, the extremely low price of unconventional gas is causing some anxiety to the nuclear industry. Will my noble friend accept that the Government’s policy of contracts for difference being introduced in the Energy Bill— the noble Lord, Lord Foulkes, has drawn my attention to the fact that the Bill is being published today; I have not seen it—is hugely important to the reassurance of the nuclear industry that it will be able to operate successfully and at a profit? Can my noble friend say when the actual strike prices will be announced, because that is the key?

[Baroness Verma]

My noble friend is of course right that there needs to be certainty. However, he will know that these things take a lot of negotiating and a lot of detail needs to be worked out. When I am able to offer my noble friend a definitive answer, I shall bring it to the House.