Hinkley Point C

Lord Forsyth of Drumlean Excerpts

Thursday 15th September 2016 Lords Chamber

[Baroness Neville-Rolfe]

As I explained in the Statement, on the Hinkley project we will, following the changes to the deal, have a veto over change of ownership. The project will also be subject to what everybody agrees is the world-class oversight of the Office for Nuclear Regulation, which can intervene in development, construction and operations, and amend site licences, among other things. That is a very important control. Then we will consult on proposals to establish a legal regime that allows us to consider national security implications in all significant investments in critical infrastructure. Once that becomes law it will apply to major infrastructure in the UK.

[Lord Forsyth of Drumlean (Con)]

My Lords, does my noble friend not think that there is a certain irony that after the nation voted to take more control of its own affairs we are asking two foreign Governments to take control of 7% of our future energy requirements? In particular, what actual transfer of risk is happening here, which presumably justifies the very high price that consumers will have to pay for this energy? Is there really a transfer of risk given that this technology is untried? No one has been able to make it work. What is plan B if it turns out that this thing does not work, to maintain energy security for our country? Finally, I very much welcome the emphasis placed on the importance of security and so on, but does the Statement not rather reek of closing the stable door after the horse has bolted?

[Baroness Neville-Rolfe]

As I explained, the risk of construction falls on the consortium. We have a deal at a pre-agreed strike price which will produce a supply of electricity over an estimated 60 years. Everyone in this House this afternoon seems to take too gloomy a view of the prospects of building this facility. We looked at this very carefully over a number of months. Our Chief Scientific Adviser gave us reassurances that learnings have been taken from other nuclear facilities. However, the consumer does not pay a penny until Hinkley generates electricity. The risks are borne by the developer.