Nuclear power only insurable by ‘gullible governments’Nuclear power is only economically sound because taxpayers will
have to pay to clean up after any radioactive incidents during
decommissioning, according to Labour MP Paul Flynn. Mathew Beech,
Utility Week, 2014-02-25
"Nuclear installations are uninsurable in normal commercial terms.
Only gullible governments can bear the enormous risk. If operators paid
for their own insurance indemnities, their case for economic production
of nuclear electricity collapses," said Flynn. He dismissed government
comments downplaying the risk: “If risk is minimal, nuclear sites could
be insured commercially.”
His comments came after the government revealed that private
contractors taken on to decommission the UK’s fifty-year old Magnox
nuclear plants would be indemnified against liability in the event of a
radioactive incident. Flynn claimed the indemnification exposed the
public purse to potentially enormous costs as witnessed following
Japan’s catastrophe at Fukishima. "The cost of the Fukushima cleanup and
damages ranges from £150 billion to £300 billion and rising,” Flynn
said
Flynn’s outburst came only days after shadow energy secretary
Caroline Flint, said: "Nuclear power has a vital role to play as part of
a more sustainable, balanced and low-carbon future energy mix, to make
us less reliant on volatile fossil fuel prices, increase our energy
security, and keep prices down for families.” She was commenting on the
UK-France agreement to strengthen co-operation in the development of
civil nuclear energy.
In a note to parliament on the indemnity to be given by the Nuclear
Decommissioning Authority to contractors employed in the decommissioning
of the old Magnox fleet the Department for Energy and Climate Change
(Decc) said the contractors "are not prepared to accept liability" for
certain claims following nuclear incidents. Decc said “the maximum
figure for the potential liability is impossible to accurately
quantify," but claimed taxpayers faced a "low probability" of a claim.
Energy minister Michael Fallon, in a written statement to parliament,
said the savings from the competitive deal struck with new contractors
outweighed the “small risk that the indemnity may be called upon.” He
said the indemnity was “prerequisite to awarding the contract and
securing the benefits of the competition.” |