The Government has today been forced to remove a controversial clause from its new Energy Bill which could have made the nuclear industry eligible for bailouts following opposition from Conservative and Lib Dem MPs.
 
Ministers argued that the clause - highlighted by Friends of the Earth in April - was essential because it reduced risk for those investing in nuclear power.  Friends of the Earth and others said it didn’t reduce risk, it simply transferred it from nuclear companies to the taxpayer - effectively a subsidy.
 
Ministers are expected to introduce an amended clause at a later stage in the Energy Bill.
 
Friends of the Earth’s Energy Campaigner Martyn Williams said:
 
“Ministers promised they wouldn’t give hand-outs to the nuclear industry, but they keep trying to sneak them through.
 
“We found out and stopped the Coalition this time - but windfall profits for existing nuclear stations and subsidies for clean-up in the event of a nuclear accident are still hidden in Government legislation and policies.
 
“Public money shouldn’t be gambled on nuclear power – it should be used to build a cleaner, safer future by slashing energy waste and investing in energy from our wind, wave and sun.”
 
ENDS
 
Notes to editors:
1.    Guardian: Loophole in energy bill could see UK taxpayers funding nuclear bailouts.
2.    Under existing law, Ministers must agree a clean-up plan and the funding arrangements required with any company building a new nuclear power station.  Crucially however, Ministers can amend these plans should something happen which means new safety measures are required, or there is another unforseen change in circumstances.  The proposed clause 102 (now withdrawn from the Bill) would have allowed Ministers to promise the companies they would not change these plans, unless they agreed.  This made it possible for nuclear companies to refuse to agree to new safety measures unless Government funded them.