Nuclear Energy (Financing) Bill — Clause 6 — Licence Modifications: Designated Nuclear Companies — 10 Jan 2022 at 18:45

The majority of MPs voted against requiring a report setting out the details, including funding and decommissioning arrangements, for each nuclear power project to be funded by directing funds from consumers, via electricity suppliers.

MPs were considering the Nuclear Energy (Financing) Bill.^[1][2][3]

The Bill provides powers for the Government to help fund, and encourage private investment in, new nuclear power stations by directing funds from consumers, via electricity suppliers, to pay for the design, construction, commissioning and operation of a new nuclear energy generation project.

The amendment rejected by a majority of MPs in this vote was:

• Amendment proposed: 9, in page 5, line 21, at end insert—
• “(4A) The Secretary of State must lay a report before Parliament in respect of each project in relation to which a nuclear company has been designated under section 2(1) before exercising the power under section 6 :(1), setting out—
• (a) the expected overall capital cost of the prospective project,
• (b) the expected up-front cost of the prospective projects,
• (c) the general terms of the project for the sale of electricity onto the grid, including—
• (i) a statement of whether the Government has offered the nuclear company a minimum floor price mechanism for the sale of electricity onto the National Grid,
• (ii) the minimum floor price mechanism included in any arrangement including any inflationary or baseline indices, and
• (iii) the duration in years of any such arrangement under sub-paragraph (ii); and
• (d) how decommissioning costs of the project will be met, including in the event of insolvency of the nuclear energy company, setting out any role for—
• (i) revenue collection contracts, including any percentage specifically dedicated to decommissioning costs;
• (ii) protection of decommissioning payments for time of need;
• (iii) insurances; and
• (iv) consumer risk.

The rejected amendment was accompanied by the following explanatory statement from its proposer:

• In respect of new nuclear projects, this amendment would require the Secretary of State to lay before Parliament a report on the up-front and overall expected cost of the project, details of any agreement reached terms for the sale of electricity onto the National Grid and how decommissioning costs will be met, including in the event of the nuclear company becoming insolvent.

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• [1] Parliament's webpage on the Nuclear Energy (Financing) Bill, Parliament.uk
• [2] Nuclear Energy (Financing) Bill as introduced, 26 October 2021, Parliament.uk
• [3] Explanatory notes to the Nuclear Energy (Financing) Bill as introduced, 26 October 2021, Parliament.uk
• [4] Amendment paper for consideration of the Nuclear Energy (Financing) Bill in the House of Commons on 10 January 2022, Parliament.uk

Debate in Parliament |