NNWE Response to the Public Accounts Committee Inquiry
FOR IMMEDIATE RELEASE 22 NOVEMBER 2017
THE STRIKE PRICE FOR HINKLEY POINT C IS NOW IRRELEVANT WHEN DISCUSSING FUTURE NEW BUILD DEVELOPMENTS.
NNWE RESPONSE TO PUBLIC ACCOUNTS COMMITTEE INQUIRY
“The Hinkley Point C strike price of £92.50 was agreed four years ago. At that time this was excellent value for consumers. The strike price for many huge offshore wind contracts agreed by the Coalition Government was more than 50% higher.
Since then the encouraging and welcome fall in the cost of renewable energy has been matched by a similar fall in the cost of nuclear.
The latest nuclear plants being developed elsewhere in Europe, in the Middle East and in Asia are all significantly cheaper than Hinkley. They generate electricity at prices which are fully competitive other low carbon technologies, including the cheapest forms of renewable energy once the cost of grid connections and back up generation capacity is taken into account.
Nuclear energy remains the only reliable large scale low carbon source of baseload electricity.
NNWE urges the government to accept the recommendation by the Public Accounts Committee to consider investing in future new build developments as the cost of borrowing for government is significantly cheaper than for any private companies. This will directly benefit consumers by cutting the price of nuclear generated electricity.
This should form a key pillar of the upcoming Nuclear Energy Sector Deal – part of the wider industrial strategy.”