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Tuesday, 22 January, 2002, 13:36 GMT
Blair considers nuclear changes
Hunterston nuclear power station
Experts say it could be difficult to replace plants like Hunterston
Changes to the nuclear power industry that experts say would throw the future of nuclear energy into doubt are being put before Prime Minister Tony Blair.

A report from the Performance Innovation Unit examining the UK's future energy needs, forecasts a continuing shift to gas power and an increase in renewable power and energy conservation.


For the foreseeable future nuclear power has a part to play in Britain's energy needs

Brian Wilson
Energy Minister Brian Wilson said Mr Blair would not necessarily follow the recommendations of the government-commissioned report.

Mr Wilson, who has the Hunterston nuclear power plant in his Cunninghame North constituency, said nuclear power had a role to play for the foreseeable future.

Investment fears

A final draft of the report seen by BBC Radio 4's Today programme says it will be up to the private sector to decide whether to build new nuclear plants.

But the industry should "internalise" all its costs, meaning it would take the burden of disposing of radioactive waste rather than receive government help.

A nuclear industry spokesman told BBC News that change would make it a "challenge" to find investors willing to invest in nuclear power.

Andrew Stunnell, Liberal Democrat MP
Stunnell says nuclear is uneconomical and unsafe
Jason Goddard, utilities analyst at Credit Suisse First Boston, said current plants would be able to continue making small amounts of profit but remaining "rather precarious".

"But it would mean that new investment in new plants in the UK would be pretty much impossible," said Mr Goddard.

Mr Wilson said there had been "endless leaking and spinning on the basis of selective extracts" from the PIU report, which set out "fairly and positively" arguments on the future of nuclear power.

"For the foreseeable future nuclear power has a part to play in Britain's energy needs," Mr Wilson told Today.

"I haven't heard any logical or thought-through position which says that it isn't."

The minister argued the only way the UK could have a secure energy supply without using nuclear - which currently supplies 25% of UK electricity - was to become 70% dependent on gas.

Some 90% of that gas would have to be imported, he added.

Conservative energy spokesman Robert Key said doubted the government would follow the report's recommendations about helping companies with decommissioning and waste costs.

"It would be a world first if the government said: 'We have no responsibility for nuclear waste and we are going to put it out to the market.'"

'Pro-nuclear lurch'

Mr Wilson's remarks prompted an attack from Liberal Democrat energy spokesman Andrew Stunnell.

"The government's pro-nuclear lurch must be condemned," he said.

"They do not even have the courage to accept the findings of their own think-tank, which has carried out a thorough study on their behalf and acknowledged a continuing shift to gas, renewable power and conservation.

"Nuclear cannot be the future of Britain's energy needs. It remains uneconomical, environmentally unsafe and politically unsound."

See also:

30 Mar 00 | UK
Nuclear sell-off delay
08 Nov 00 | Business
Nuclear plants win longer life
15 Jun 00 | Business
Nuclear power nightmare
03 Sep 01 | Scotland
Nuclear debate fuels speculation
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