‘Nuclear tax will hit oldest and poorest hardest’ says local authorities

Government plans for energy customers to indirectly fund nuclear projects through a ‘nuclear tax’ has been described as ‘daylight robbery’ by the Nuclear Free Local Authorities (NFLA).

The organisation, which campaigns against nuclear power, has said the scheme will hit the poorest and oldest citizens the hardest, as the nation is already struggling to pay energy costs.

The Nuclear Energy (Financing) Act will help the government to fulfil aims to build eight new power stations by 2050 by ensuring electricity companies pay a subsidy towards construction costs.

However, this money will be raised through a Regulated Asset Base (RAB) model by passing charges onto domestic customers through a levy placed on their fuel bills.

While ministers claim this will reduce costs of building new plants, the NFLA says their real motive is to shift the risk and cost of delayed new projects running over budget from commercial operators to taxpayers.

Cllr David Blackburn, Chair of the NFLA Steering Committee, said: ‘It is our view that commercial energy operators, who are in the generation business to make a profit, should source the finance from the private sector, or in the case of EDF Energy from their owners, the French Government, and shoulder the cost of overruns themselves.

 ‘It is scandalous that this government seems intent to pass the buck for for-profit nuclear projects onto domestic customers, who have already seen their energy costs skyrocket in recent months, by charging them an extra “nuclear tax” on their electricity bill.

 ‘Rather than RAB the Regulated Asset Base model should be called ‘Rob’, because this tax will be applied to all customers, even those customers in receipt of a basic income, like Universal Credit, and upon our oldest citizens, many of whom will not even be alive by the time Sizewell C comes online, if indeed it ever does.

‘The Business Department is currently consulting on RAB, and the NFLA has made strong representations to Ministers that the elderly and vulnerable groups should not be hit with this iniquitous tax.’

Costs for building EDF Energy-owned power plant, Hinkley Point C, have now risen by a further £3bn to £26bn and the completion date has been pushed back to June 2027.

In this case the costs of the delayed project will be covered by EDF, owned by the French state, but for power project Sizewell C, approved by government last month, costs will be passed to consumers.

Ministers claims average energy bills will by no more than £1 per month, but research by the University of Greenwich suggests it will be double this, with estimates the build will cost £44bn and take 17 years.

The NFLA has responded to the Business Department’s latest consultation on RAB and has called for the UK’s oldest and poorest citizens to be made exempt from the levy or recompensed by government.

Photo by Jason Blackeye