UK Nuclear Energy Programme

Luciana Berger Excerpts

Monday 21st October 2013 Commons Chamber

[Mr Davey]

We will of course be publishing a lot of these details, but I have to say to my hon. Friend that, given the experience in Japan and Germany, it is not unreasonable for a company wanting to invest in nuclear to have some protection against a future Government changing the policy completely. I think that if he was a shareholder of a company wanting to invest in UK nuclear, he would be looking for that sort of protection too. In many ways, I regret that we have had to give that protection, but it was a reasonable request and I think it would have been a show-stopper if we had not been able to meet it.

[Luciana Berger (Liverpool, Wavertree) (Lab/Co-op)]

I listened carefully to the Secretary of State on where future savings could be made, but if the reference price comes in below the strike price, EDF will make even more than its 35-year guaranteed return. The Government rejected Labour’s proposals to ensure that any difference between the reference price and strike price would be passed back to consumers. How will the Government ensure that hard-pressed bill payers get the best deal for their energy?

[Mr Davey]

We have started that process by our announcement today. I am not sure what strike price the hon. Lady and the hon. Member for Rutherglen and Hamilton West (Tom Greatrex) mentioned in the Bill Committee proceedings, but few people thought we would achieve the strike price we did. What she fails to mention is that because we have gone through the investment contract—the contract for difference—we have protected the consumer yet again. If the wholesale price is above the strike price, the generators have to pay back to the consumer—yet another protection for the consumer.