Saturday, 27 September 2014

Power for your pound

The costly deal between the UK Government and EDF Energy to subsidise the proposed Hinkley Point C nuclear power station may be close to gaining approval from EU competition authorities (see here). Nuclear has failed to keep its promise of providing cheap electricity even though at one point it was claimed it would be too cheap to meter. To make the Hinkley C nuclear deal happen EDF have been guaranteed almost double the current market rate for electricity and UK households look set to pay over the odds bills as a result.

Everyone acknowledges the very high capital costs of nuclear power and nobody yet knows for sure what decommissioning costs will finally be because we have insufficient experience of it. Nuclear is a very large drain on both public and private resources that we should be directing into options consistent with sustainability such as energy efficiency and renewable energy generation. However, EU Competition Commissioner JoaquĆ­n Almunia supports approving of public funding for building Hinkley C. The imminent decision is taken not by one but by a college of all the EU Commissioners but Almunia’s view obviously carries weight.

A letter has been sent by a group of over 20 academics, politicians and renewable energy companies to EU Competition Commissioner Almunia, Commission President Jose Manuel Barroso and his successor Jean-Claude Juncker urging them to take due time to consider this crucial decision properly. The letter, whose signatories include Molly Scott Cato Green MEP for the South West, warns of legal action in the event of a rushed decision.

EU Commissioners will rule on whether the deal amounts to illegal state aid. Nuclear opponents say the two proposed reactors at Hinkley Point infringe EU single market rules on the internal energy market, if the £16 billion development proceeds as currently agreed. Alternative developments to perform the same function have not been set against the nuclear proposal. 

Debates on UK energy policy focus almost exclusively on energy generation/production and often neglect even to mention energy saving and energy efficiency. It’s much cheaper to save energy and be efficient than it is to generate it - not only does it cut household bills and increase the profitability of businesses by reducing their outgoings, it also cuts pollution rapidly, is a very good job creator, can increase comfort, cut noise levels, and can sometimes be done using materials normally thrown away.

According to the National Insulation Association Britain has 7 million homes with lofts that need to be insulated. It has 5 million homes with cavity walls that need to be filled and 7 million with uninsulated solid walls. If it proceeds unchanged the deal between the UK Government and EDF Energy would lock consumers into paying well above the going rate for electricity for decades ahead while the cost of renewable energy falls rapidly.  A very bad deal for consumers – and one that won’t help tackle climate change because the Government's own [former] advisors at the SustainableDevelopment Commission produced figures to show that even doubling nuclear capacity would cut the UK's carbon emissions by just 8% and then not until 2035. 

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