Nuclear Review (Hansard, 19 May 1994)

§ Mr. Eggar

I am now in a position to announce the terms of reference, timing and format of the nuclear review. This answer has been agreed with my right lion. Friend the Secretary of State for Scotland, who has responsibility for the nuclear power generating industry in Scotland.

The Government believe that the future role of nuclear power in the United Kingdom's electricity supply will depend on it proving itself competitive while maintaining rigorous standards of safety and environmental protection.

The coal review established that there is a sound economic basis for continuing to operate existing nuclear stations. The nuclear review will not consider whether Sizewell B should be brought on stream. Sizewell B is on course to start operating this year, subject to the receipt by Nuclear Electric of such consents as are required by law. Decisions on these consents are matters for the appropriate Ministers and authorities and are not matters for the review. The review will, however, take into account the decisions made on Sizewell B, whether the consents are granted or refused.

The nuclear review will focus on the future prospects for nuclear power. It will examine the economic and commercial viability of new nuclear stations in the United Kingdom, against the background of the Government's energy policy as set out in the White Paper "The Prospects for Coal", Cm. 2235.

The Government have asked the nuclear generating industry to make the commercial case for new nuclear generating capacity and to make that case publicly available. Whether any new nuclear station could be built with private sector finance will be a key test of that case. The Government would welcome comments on the industry's case, which will be published shortly.

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The Government also invite submissions from interested parties on whether new nuclear power stations offer particular diversity, security of supply and environmental benefits or disadvantages.

The review will examine possible options for introducing private sector finance into the nuclear industry. As part of this, the Government are prepared to consider without commitment representations on whether privatesation would in principle be feasible, and what a practical timescale might be. The review will address the question of how best to manage the substantial nuclear waste and decommissioning liabilities which are currently the responsibility of the public sector, so as to secure value for money for the taxpayer while ensuring necessary safety and environmental standards are met.

The review will also assess the existing arrangements to enable the full costs of nuclear power in the United Kingdom to be met, taking account of the Trade and Industry Committee's recommendations on the fossil fuel levy in its report, "British Energy Policy and the Market for Coal," HC 236.

Submissions on these issues should be made in writing both to my Department and the Scottish Office, to be received by 30 September. All substantive submissions received by the Government will be made publicly available. Copies will be placed in the Libraries of this House and of the House of Lords. Commercially confidential information in submissions received by the Government, internal papers and advice and reports internal to Government, and advice from external advisers will not be made publicly available in this way.

The review will be undertaken by the Department of Trade and Industry and the Scottish Office Industry Department, in consultation with other Government Departments as appropriate. The Government may appoint consultants to advise it on matters relevant to the review as the need arises.

My right hon. Friend the Secretary of State for the Environment is announcing today a separate review of radioactive waste management policy, to be conducted in parallel with the nuclear review.