Wantage MP Ed Vaizey: this is why we should really be concerned about Hinksey Point plans

MANY residents have contacted me to express their concerns about the plans to build two new nuclear reactors at Hinkley Point. It’s fair to say that most of my constituents are opposed to the plans, and they certainly need careful scrutiny. As readers will know, Harwell in my constituency is the birthplace of British civic nuclear engineering. With so many of my constituents having worked in the industry, it’s hardly surprising that I am a strong supporter of the nuclear industry in principle. And there is a strong case for the new reactors. If constructed, Hinkley Point C would make a much needed contribution to the UK’s energy security by producing seven per cent of the UK’s electricity, while helping reduce the UK’s carbon emissions. It would bring in billions of pounds of private investment - creating around 25,000 jobs at the peak of construction.

However, like my constituents I do have doubts about the viability of the scheme. These doubts, I hasten to add, are not based on the involvement of the Chinese in the project. As a minister I dealt with Chinese companies like Huawei, and over the last few years we have built a strong relationship between our two countries. Rather, I am concerned by the huge cost (which I suspect will increase above the public figure already quoted), and the fact that an untried reactor technology is being used.

Hinkley Point C has a projected lifetime of 60 years, and an estimated construction cost of £24.5 billion. Although the construction costs will be paid for by the mainly French state-owned EDF and Chinese state-owned CGN, their investment comes with guarantees on the amount that can be charged for the power generated, and the “strike price” for an MWh of electricity agreed between the Government and EDF is £92.50 in 2012 prices – which is about double to cost of gas. This means that the additional cost to consumers of nuclear energy is almost £30 billion – quadruple the original projected costs. The fixed strike price means that consumers will not benefit from future reductions in electricity prices.

My second concern is with the reactor technology being used. There are currently four commercial nuclear plants around the world that use the European Pressure Reactor design being planned for Hinkley, but crucially none of these are yet operational.

I understand that Government officials and ministers are aware of the issues that have been encountered in France and Finland, and there are clearly lessons that have been learnt from the French and Finnish experiences. A good example of how lessons and experiences can be shared can be seen in the third and fourth EPR reactors in Taishan, China. These reactors have been built much quicker than their French and Finnish counterparts, and are due to come online next year.

The Government recently announced that it would be reviewing the component parts of the project, and make a final announcement in autumn. I intend to keep a close eye on the project, and the outcome of the Government’s final review.