Govt 'makes U-turn' on nuclear subsidies - 23/04/2012

The government is drawing up plans to subsidise the nuclear power industry through domestic energy bills, it has been reported, which could affect people looking for cheap electricity.

This is despite earlier assurances that consumer bills would not be used to support the industry, the Guardian noted.

A leaked document seen by the newspaper detailed proposals for energy suppliers to use "contracts for difference" for nuclear power, which would allow operators to receive higher prices than for energy derived from fossil fuels.

The Guardian stated the plans may anger Liberal Democrat members of the coalition, whose opposition to new nuclear plants has intensified since the Fukushima disaster in Japan.

Green campaigners suggested the party has been persuaded to allow higher energy bills to subsidise nuclear power by describing it as support for low-carbon electricity.

The plans were denounced by the Scottish National Party, which said the hidden subsidies reveal the UK's energy policy is "in tatters".

Westminster energy and climate change spokesman for the group Mike Weir said: "Electricity customers will foot the bill for nuclear power despite previous promises this would not happen."

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