UK Nuclear Energy Programme

Debate between Mark Hendrick and Ed Davey

Monday 21st October 2013 Commons Chamber

[Mr Davey]

My hon. Friend is aware that my right hon. Friend the Chancellor recently signed a memorandum of understanding with the Chinese Government to ensure that we can work together more in the area of civil nuclear power. That means Chinese companies investing in the UK and British investors and companies investing in China. I will not say that the markets will open overnight—that would be unrealistic—but we are moving into a new era in which we can work with the Chinese and other foreign states.

One odd thing about the debate is that a Hong Kong Chinese company owns UK Power Networks, which owns three of our district network operating companies, including London. So the electricity supplies to London—the cables and the networks—are owned by a Chinese company. I have not heard questions on that at Department of Energy and Climate Change oral questions. Perhaps I will in future, but the evidence—the lights have stayed on—suggests that people should not worry.

[Mark Hendrick (Preston) (Lab/Co-op)]

The Secretary of State says that the deal is not a deal at any price. How can he anticipate that the decommissioning, clean-up and waste disposal costs will be around £2—that is what he said in his statement—when there is no identifiable or accepted disposal site in this country, and when the project is on a scale this country has never seen before?

[Mr Davey]

There is already a lot of decommissioning expertise in this country because we are spending so much money on it. We have a lot of technology in that area. If we build those costs into the strike price early on—[Interruption.] If the hon. Gentleman listens, I will answer his question. We can do it for £2 early on, from day one of generation, because we are putting money aside over a 60-year period of generating. I believe the funded decommissioning plan lasts for 40 years—[Interruption.] I am getting nods, so I must be right. However, the plant is expected to generate electricity for 60 years. It is rather like a pension fund. If we make sensible provision early on, the costs can be kept very low.