Monday, 20 December 2010

UK government agrees to subsidise nuclear power companies' prices

Companies hoping to build Britain's new nuclear stations, including EDF and
Centrica, will score a victory in the electricity market reforms - the
biggest shake-up since privatisation. Money will be raised from consumer
bills to help fund expensive nuclear, wind and other low-carbon power, as
the UK moves away from cheap fossil fuel electricity. It will cost £40bn to build Britain's new nuclear power stations and this
will largely be funded by utilities. However, the Government will agree to four measures providing investors with
certainty that they will make money from nuclear and wind power, which carry
huge up-front capital costs. Firstly, it will fix the price that some low-carbon generators can get for
their electricity, awarding contracts to companies that can build capacity
at the lowest cost.

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