Nuclear Decommissioning Authority at risk of delay - taxpayers could be left footing the bill for future bailouts of private nuclear operators
A leading QC has said today that the Government cannot pass its planned Energy Bill without EC approval because it may breach European rules on state aid. Greenpeace released the legal opinion as the proposed Energy Bill is due for its second reading in the House of Commons today (Monday 10th May).
The legal analysis by top state aid and competition experts, Paul Lasok QC and Rebecca Haynes, states that the Bill could result in the British taxpayer footing the bill for future bailouts of troubled private nuclear companies. The legislation may also allow for extra state aid to be granted to failed nuclear operator British Energy despite the European Commission already agreeing to a government bailout out of £3.3bn for BE's nuclear waste liabilities.
The Bill was originally proposed to allow only for funding the massive clean up costs of the UK's civil nuclear industry - BNFL and UKAEA. Establishing the Nuclear Decommissioning Authority to deal with stockpiles of dangerous radioactive waste and decommissioning nuclear power stations and reprocessing facilities is likely to cost around £50 billion. However, Greenpeace believes the Government has put he NDA's establishment at risk by including in the Energy Bill provisions for the future funding of private sector nuclear liabilities - which the group believes could encourage the building of new nuclear plants. The Bill also allows for the NDA to continue to operate nuclear facilities like the Sellafield reprocessing plants.
Greenpeace nuclear campaigner Jean McSorley said,
"The Energy Bill has been hijacked by the nuclear industry. It has been worded so as to further the interests of nuclear power companies, instead of protecting the public by dealing with the hazardous legacy of the UK's nuclear waste stockpile."
"We believe it is reckless of the Government to attempt to pass legislation that could mean even more taxpayers money being used to bailout the private nuclear sector in the future. This legislation should not be pushed through without a full disclosure and examination of its state aid provisions."
"If the Government is serious about cleaning up nuclear waste, and also allowing more scope for renewables under the Energy Bill, it should delete the private nuclear sector funding provisions and wait until the Commission has made its decision on those matters. That way the passage of the whole bill is not put at risk."
Letters from the European Commission to Greenpeace have confirmed that the Bill is being analysed for its potential State aid implications. Although the Bill has already been through the House of Lords, the issue of the EC's examination was not debated.
The legal opinion also throws doubt over whether the Government can pass provisions in the Bill that will enable further funding for failed private nuclear operator British Energy (BE). In November 2002, Greenpeace exposed the Government's failure to notify the state bailout of BE to the Commission, which led to the ongoing EC investigation of the BE restructuring plan (1).
Download Paul Lasok's full advice
For more information contact the Greenpeace press office on 020 7865 8255.
Notes to Editors:
1. The EC investigation is not expected to report on the BE package until mid year at the earliest. Its preliminary report found parts of the package were unlawful. The Government bailout of BE will cost £.3 billion for liabilities alone.
