UK Nuclear Energy Programme

Stephen O'Brien Excerpts

Monday 21st October 2013 Commons Chamber

[Mr Davey]

I think I followed that question. The hon. Gentleman is an expert in this area and his points are important. I said in my statement that there will be operation expenses reopeners at 15 years and 25 years, but they will be symmetrical, so if operation costs have reduced, the strike price will come down, and if they have increased and that can be proven, the strike price will go up. That is the only way to manage such a contract over such a long period; otherwise the initial strike price would have to be much higher in order for the investors to undertake those risks. We will be transparent, so over the coming weeks and months the hon. Gentleman and the Select Committee will be able to look in detail at many of the issues he has raised.

[Mr Stephen O'Brien (Eddisbury) (Con)]

As a former industrialist who has long argued for the renewal of our fleet of nuclear power stations, I warmly welcome this agreement between the parties. It will provide constant base load electricity generation, which is necessary for competitiveness. I hope that many other areas will shortly follow suit, not least the north-west. Bearing in mind the reasons for his “conversion”, as he put it, will the Secretary of State try to persuade our European partners that this low-carbon method of producing energy should count towards our renewables obligations?

[Mr Davey]

I am grateful for my right hon. Friend’s comments. Britain is working with a significant number of like-minded member states that wish to develop their nuclear programmes. I believe that nuclear needs to be seen as a low-carbon technology in the European debate, because it will be critical to meeting our climate change objectives in the UK, Europe and the world. I recommend to him and to other right hon. and hon. Members the book by the chief scientist in my Department, “Sustainable Energy—Without the Hot Air”, which is this House would benefit from.