The Secretary of State for Business said the new £25bn Sizewell C nuclear power station will be ‘great for East Anglia and the UK’ as he formally agreed the Government’s £700m contribution to the project.
Grant Shapps visited the site of the proposed dual reactor, which will generate electricity for six million homes, yesterday (Monday) and confirmed the state’s backing for the first nuclear project in 30 years - with the state taking a 20% stake in the overall scheme.
He was joined on a tour of the proposed site for the new station by EDF Energy chief executive Simone Rossi, Helene Duchene, French ambassador to the UK and Julia Pyke, finance director for Sizewell C.
He said: “This is going to allow us to have a great mix of renewable and solar energy and it is going to be great for East Anglia and the UK.”
As well as announcing the support for Sizewell, Mr Shapps also unveiled other measures aimed at tackling the energy crisis, including the Energy Security Bill, which aims to encourage homegrown low-carbon energies such as hydrogen and plans to boost energy efficiency.
In particular, the Government is looking to reduce energy consumption by buildings and industry by 15% by 2030 by funding insulation and encouraging energy saving measures, such as turning down radiators and draught proofing windows.
However, campaign groups opposed to the project, such as Stop Sizewell C, have questioned the affordability of the power station, with private finance expected to pay 60% of the overall cost.
The campaigners, including Together Against Sizewell C (TASC), are currently pursuing a legal challenge against the project, which was given the green light in July and the High Court is due to decide whether to proceed further with their claim at an oral hearing on December 14.
The Government is considering a funding model called the Regulated Assets Base (RAB) whereby electricity customers will pay part of the costs of the power station through their bills.
However, Mr Shapps said the Government was looking for funding ‘from the market place’ because private investors would be attracted by the knowledge that there was going to be a ‘down payment’ on nuclear.
He added: “It is not unusual for big public projects to be funded privately. The Channel Tunnel is an example of that.”
Other concerns raised by campaigners have focused on the level of foreign investment in the project- with French-owned EDF Energy taking a 20% stake - when the aim is to secure energy independence for the UK.
But Mr Shapps said: “We always encourage foreign investment in this country. We have no concerns about people investing in Britain. We are proud to be an open economy and allowing people to invest.”
Reacting to Mr Shapps' visit, Alison Downes, of Stop Sizewell C, said: "Sizewell C can neither lower energy bills nor give the UK energy independence.
"Despite the government's paltry £700m, there is still a huge amount of money to find, and no one is prepared to come clean about what the ultimate cost will be.
"Its only chance of securing finance is if the government attracts private investors by foisting the huge cost and inevitable overruns of this lengthy and technically flawed project onto consumers, by adding an extra 'nuclear tax' on energy bills.
"But Sizewell C may have to rely on overseas investors who would pocket UK households' hard-earned cash.
"With a French developer, overseas owners and foreign uranium fuel, the claim of energy 'freedom' looks pretty hollow."
Grant Shapps on the campaigners’ legal challenge
Last week, the EADT reported how campaigners had pledged to continue the fight against Sizewell C after chancellor Jeremy Hunt confirmed in his budget Autumn Statement that the Government would be funding the project.
Chris Wilson, legal liaison officer with TASC, said if the High Court judge deemed there was a case to answer at the oral hearing for the legal challenge, then the next stage would be a formal judicial review hearing, which could result in the original Government development consent being overturned.
He said: “We are certainly not giving up. TASC will continue with our legal action to the end. The Sizewell C project has a long way to go as it needs numerous permits and licences from the Office for Nuclear Regulation and the Environment Agency.”
Mr Shapps said: “I think, because it is going through a legal process, it would not be appropriate for me to comment. It needs to follow the appropriate legal route.”
He reflected upon the existing stations at the site- Sizewell A and B- adding: “I think the good thing about this site here is that people know exactly what this site is all about. People know that it has brought a high number of high skilled, highly paid jobs here. There will be another 10,000 jobs.”
Grant Shapps on insulation
Mr Shapps said he would ‘look at’ a decision by East Suffolk Council to reject a proposed pilot project to provide homeowners with better access to insulation.
Funding insulation to improve the energy efficiency of homes was one of the core policies announced by the secretary of state.
However, last week the council turned down the project, proposed by Southwold councillor David Beavan, that would have involved the council working with Warwick University to identify clusters of houses where large amounts of insulation could be provided quickly.
As part of the project, the council would have arranged for community meetings, information and joint purchasing, which would have reduced costs for homes to pay for cavity wall and loft insulation, as well as boiler upgrades.
Mr Shapps said: “I will look at it. East Suffolk Council can be assured and reassured that we stand four square behind improving the efficiency of homes and that is what we are looking at.”
Figures from the Liberal Democrats revealed 60,026 homes in east Suffolk, equivalent to 64% of the district’s total, had poor energy efficiency ratings, being classed in bands D-G in their Energy Performance Certificates (EPC).
The research revealed that in total, families in the district would be paying £57m more in their energy bills due to the poor performance.
Mr Beavan said he was ‘saddened’ at the rejection of ‘this valuable opportunity to save our residents money on their energy bills, improve our country's energy security and ultimately save our planet’.
He added: “East Suffolk Council has been lucky enough to be approached by world-leading expert professors from Warwick, one of the UK’s top universities, with an offer of free support.
“They offered to identify clusters of housing where the work could be done on a number of houses for a lower cost.
“This would meet a great many of East Suffolk Council’s goals: lower energy costs for East Suffolk residents, better insulated homes for the future and desperately needed action against the climate emergency.”
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