We are coming to a crucial moment of decision on the future of nuclear power in the UK, with implications for the industry across Europe and beyond.
The basic issue is whether nuclear power can be provided at a cost that does not damage industrial competitiveness or impose an unacceptable burden on consumers. Without a positive answer to that question, nuclear will not be able to play a role in the transition to a lower-carbon economy.
Despite a long standing commitment to build 16GW of new nuclear capacity, only one new plant is under construction — Hinkley Point C in Somerset — which will, when eventually brought on stream, impose a long-term burden on UK consumers. The price agreed in 2013 — ￡92.50 per MW hour — looked extremely expensive then, but the real burden will come from the agreed index-linking of the price for 35 years. That already gives a price of over ￡100, a number way above those for competing sources of power such as wind, solar and natural gas.