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Government hidden subsidy to fix new nuclear waste costs

12 Jun 2008

Responding to the White Paper on nuclear waste, Nathan Argent, Greenpeace's nuclear campaigner, said: "No company would invest in nuclear if they were left to pay the full costs of nuclear waste. That's why the Government is fixing it so the financial risks fall on the taxpayer. The costs will massively over-run, as they have consistently done so far.

"No-one knows how much the Government's shoddy plans would cost. Even Hilary Benn, the minister responsible, admitted as much in Parliament this afternoon.

"Nuclear waste is a financial and geological nightmare. There is no plausible solution for our existing legacy waste, let alone the waste from new reactors, which will be at least three times more radioactive.

"This White Paper is not about finding a solution for nuclear waste. It's about bribing a community with £1bn of taxpayers' money to bury waste in their back garden. But there's no guarantee a willing community will come forward or that they'll be able to find a geologically suitable site anywhere in this country.

"The Government cannot press on with its plans for new nuclear power when its strategy for dealing with radioactive waste is shambolic."

  • The Nuclear Decommissioning Authority, the body in charge of dealing with the UK's radioactive waste, admitted recently that the costs of cleaning up existing nuclear waste, estimated to already be £73bn, were likely to spiral by billions. When pressed on how much it might increase an NDA spokesman claimed "I'm sure it'll be some billions, I really don't know." http://news.bbc.co.uk/1/hi/sci/tech/7421879.stm
  • Yesterday, the government's former advisor on nuclear waste disposal, said that energy companies are being a hidden subsidy to build new nuclear power stations through the proposed funding of waste disposal. (‘Subsidy' for nuclear power attacked, Financial Times, 11 June) 

Greenpeace press office: 020 7865 8255.

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Big fat bribes for anyone willing to live with nuclear waste

We've known for quite some time that the government's preferred solution to that nagging problem of all the nuclear waste currently lying around the place is to dump it in a big hole in the ground. Nice. However, they've had trouble finding anywhere in the country which has been willing to live with this waste bubbling away beneath their feet but now they've come up with the perfect solution: bribery!

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Government nuclear waste plans a “shambles”

11 Jun 2008

The government's strategy for dealing with nuclear waste was labeled a "shambles" today, ahead of an expected White Paper tomorrow.

Ben Ayliffe, head of Greenpeace's nuclear campaign, said:

"Nuclear waste is a financial and geological nightmare. These proposals do not provide a plausible solution for our existing legacy waste, let alone the waste from new reactors, which will be at least three times more radioactive.

"This White Paper is not about finding a solution for nuclear waste. It's about bribing a community with £1bn of taxpayers' money to bury waste in their back garden. But there's no guarantee a willing community will come forward or that they'll be able to find a geologically suitable site anywhere in this country.

"The government cannot press on with its plans for new nuclear power when its strategy for dealing with radioactive waste is such a shambles."

  • The Nuclear Decommissioning Authority, the body in charge of dealing with the UK's radioactive waste, admitted recently that the costs of cleaning up existing nuclear waste, estimated to already be £73bn, were likely to spiral by billions. When pressed on how much it might increase an NDA spokesman claimed "I'm sure it'll be some billions, I really don't know." http://news.bbc.co.uk/1/hi/sci/tech/7421879.stm
  • At the same time, British Energy, the UK's biggest nuclear operator, announced that its annual profits had slumped by a third. BE blamed falling electricity prices and unplanned reactor shutdowns. (http://www.telegraph.co.uk/money/main.jhtml?...)
  • This week British Energy turned down a £10bn takeover bid from EdF, saying that its bid "does not represent value for shareholders." BE added that talks were ongoing, but that "there can be no certainty that any of the discussions will lead to an offer being made for the company". (http://www.british-energy.com/article.php?article=243)
  • The French Nuclear Safety Authority has now ordered all construction work to stop on the site of the supposedly state-of-the-art European Pressurised Reactor (EPR) in Flamanville, Normandy, because of on-going safety problems. The EPR is the reactor design that the Government is keen to see built here in the UK. (http://www.ft.com/cms/s/0/c2873968-2c4f-11dd-9861...l)

Greenpeace press office: 020 7865 8255.

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Will there be blood?

"You have to act quickly, because very soon these fields will be dry." This prediction, drawled by hardened oilman Daniel Plainview in this year's best film, There Will Be Blood, has become a reality. Eight years into the 21st century and we are seeing the beginnings of a new energy horizon. Oil is receding into the distance. Nature's "free gift" to humanity is running out, fast.

2008 will come to be seen as the year the world's leaders were forced to confront their demons. The global response to stratospheric oil prices will determine if we are able to escape the worst consequences of climate change, feed the world and prevent pollution from ruining living conditions in our ever expanding cities. Trillions of dollars will be spent in the next few decades on technologies to generate energy, as old infrastructure rusts and economies expand in parts of the world that have endured poverty for centuries.

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Black Tuesday blights Brown's nuclear vision

Major ongoing problems at Sellafield have been hidden from the public

Sellafield: major ongoing problems have been hidden from the public

Yesterday, Gordon Brown felt compelled to go on the record to announce that the UK needs to not only maintain but to increase its nuclear power capacity. And yet the nuclear industry is not exactly hale and hearty because, let's face it, it's been a terrible week for the poor dears.

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Taxpayers facing nuclear missile

27 Mar 2008

New nuclear power stations will not be built unless the government fixes the market price for dealing with waste, according to a nuclear industry expert today.

And rigging the price will, say Greenpeace, mean that taxpayers will have to subsidise new nuclear power stations.

The revelation comes as Gordon Brown is due to meet President Sarkozy of France to discuss nuclear power.

Writing in Nuclear Engineering International, Ian Jackson, who has worked in the industry for over 20 years, says that a “fully commercial price would make disposal far too expensive, killing the prospects of any new nuclear build programme in Britain”.

The government has said that decisions on building new nuclear reactors will be entirely up to the market, and that there will be no public hand-outs.

If companies building nuclear plants in the UK were charged the same rate for waste disposal as overseas utilities – which, commercially speaking, they should be – the costs would come to £201,000 per cubic metre of waste. This would amount to £8.2 billion for ten new reactors, or £820 million each. These costs - 40 per cent of the total construction costs – would scupper any plans for new nuclear reactors.

Ben Ayliffe, head of Greenpeace's nuclear campaign, said: “If nuclear power had to stand on its own two feet in a truly liberalised energy market, there’s no way anyone would be talking about building new reactors.

"Despite telling anyone who’d care to listen that new nuclear would be paid for by the industry and without subsidy, behind closed doors the government has cooked up a way to make nuclear liabilities artificially palatable. Ultimately, this means that the taxpayer is going to have to subsidise new nuclear power stations.

"The estimated costs of dealing with nuclear waste increase every single year. Including a so-called 'significant risk premium' is going to do next to nothing to cover these costs in the long-term. The risk here isn't being borne by the nuclear industry, it's being borne by the taxpayer.

“And while Gordon Brown is bending over backwards to foist new French nuclear power stations across the planet, he’s simultaneously stabbing renewable energy in the back. It’s political contortionism of the highest order.”

Ian Jackson joined the nuclear industry in 1986, working initially at the Atomic Energy research Establishment then later as a nuclear regulator. He is the author of Siting New Nuclear Power Stations: Availability and Options for Government published alongside the 2007 Energy White Paper.

Download Ian Jackson’s article in Nuclear Engineering International.

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Cost of nuclear waste could kill off plans for a new fleet

The government says the decision on building new nuclear reactors will be entirely up to the market and utility companies will have to pay their "full share" of decommissioning and waste management costs, but Gordon Brown is going to have to cook the books like a cordon bleu chef he if wants to attract new investment.

While Brown teams up with French president Nicholas Sarkozy at Emirates stadium today to push through his dream of a new nuclear era, a government advisor is publishing a new cost analysis that suggests energy companies cannot be charged a fully commercial price for waste disposal without "killing the prospect" of a new generation of nuclear reactors.

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Brown and Sarkozy to kick off new nuclear game

This week, Gordon Brown and the French President Nicholas Sarkozy, will sign up to an entente atomique and herald in a new era of cross channel cooperation.

The pact will be announced later this week at the "Arsenal summit" held at the Emirates stadium, the nominal home of French exiles and sportsmen alike, where Brown will open the proverbial front door to French utility Electricity de France (EDF), and its burgeoning workforce, to come build and operate any new nuclear power stations here in the UK.
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Nuclear costs in the US go up, up and away!

News from the Sunshine State reminds us that nuclear power is only an option for companies with very deep pockets. Or a hand in their customers' pockets, to be precise.

Progress (ha!) Energy have tripled the estimate for the new plant it's planning to build in Florida, saying that the new price tag will be an eye-watering $17 billion, and they haven't even got permission to start building yet. How are they going to pay for this? Why, by bumping up bills for its existing customers of course. "You can't avoid the notion that nuclear has an upfront cost for the customer," said Jeff Lyash, president and chief executive of Progress (double ha!) Energy Florida. "It does."

And that's just the beginning. We all know that, once the diggers move in, the costs for a nuclear power station take on a mysterious life of their own, spiralling ever upward. Just look at the delay-ridden, cash-sucking plant currently being built in Finland. It's the same in this country as well, with costs for dealing with existing waste (never mind the waste generated by a hypothetical fleet of new nuclear power stations) going repeatedly skywards.

So if the day comes when another load of nuclear power stations are being built here, remember it won't be private companies picking up the elephantine costs: one way or another, it'll be us.

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Out of commission

The cost of taking nuclear plants out of service is spiralling out of control. Is this just poor financial management, or does it have wider implications? Written by Greenpeace Executive Director John Sauven for comment is free.

This week, the National Audit Office released its damning assessment of the Nuclear Decommissioning Authority's (NDA) ability to estimate the true financial cost of decommissioning and cleaning up the UK's fleet of ailing reactors and contaminated facilities. As costs for decommissioning appear to spiral out of control - rising sharply from £56bn to £73bn over just a few years - the burden on the taxpayer grows ever more. And it doesn't end there. The NDA has also been made responsible for disposing of the UK's stockpile of legacy wastes which is estimated at an additional £10-20bn. The industry argues these increased costs have arisen in the face of "significant challenges", but the echoes from this announcement are all too familiar from a sector that has been plagued with industrial and financial incompetence.

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