Commenting on the announcement of the Government will step in to underwrite insurance costs for new nuclear reactors, Ben Ayliffe of Greenpeace said:
“These proposals fly in the face of Energy Secretary Chris Huhne’s assurances that the coalition won’t subsidise new nuclear reactors. The planned revisions to nuclear insurance laws announced today amount to ministers conceding they need to provide a huge new public subsidy for an industry that has never been able to stand on its own feet.”
He added:
“If there was a nuclear accident the cost to the taxpayer would be monumental. Nuclear power is a hugely expensive risk that’s fraught with problems, so it’s no wonder the industry is having trouble finding people to insure it.”
Ends
Greenpeace press office – 0207 865 8255
Notes to Editors
According to the Government, there will be “interest in how operators propose to find financial security or insurance to cover their new liabilities, particularly for those elements which the insurance market is unwilling to provide full cover e.g. personal injury between 10-30 years. It may be necessary for Government to provide reinsurance for any gaps, if there is genuine market failure.”
http://www.decc.gov.uk/en/content/cms/news/pn11_007/pn11_007.aspx
The Government consultation proposes an industry limit for insurance of 1.2billion (Euros). This is due to revisions of international conventions. Under these conventions any monies needed over the industry's limited insurance cover is expected to be funded by the taxpayer.
The commercial nuclear insurance sector has already indicated it will not cover the additional areas of claim in the revised conventions.
http://www.westminsterenergy.org/Upload/2006-2008-public-events/20080207/3.3%20Tetley.pdf
For details of the Paris and Brussels Conventions on nuclear third party liability - A Public Consultation and Government intervention, see See page 63-64 of:
For the proposed powers of the Secretary of State to provide cover for the nuclear industry. See Article 27, sections 20a and 20b - draft legislative order accompanying the consultation document
