Hinckley Point Subsidies

£24.5 billion is a great deal of money. It would equip every home in the United Kingdom with solar water heating systems. However, things being as they are the UK government has decided that a better use for the money (some of which will be provided by EDF, is to build a new nuclear power station at Hinckley Point in Somerset. The £24.5 billion is merely the construction cost. Another £7 billion is required for working capital.

The project was originally costed at £16 billion, but for some reason the original estimate was out by a mere £8.5 billion.

Construction of the new nuclear power station will start in 2021 and the plant is expected to be operational in 2023 when it will produce (it is estimated) about 7% of the UK’s electricity. It will be of a new design and have an estimated life of 60 years.

The UK’s existing nuclear power stations are very old and most of them have already been extended beyond their original estimated working lives.

The UK taxpayers will support the project by providing a government guarantee to buy the electricity generated at twice the existing wholesale price. Originally the government wanted to provide a higher subsidy but the European Commission prevented it from doing so. Some EU nations think that no state aid should be provided for nuclear power and that state aid should be reserved for renewable energy, so they are taking action to review the decision of the European Union’s Commission in the courts.

2 Responses

  1. I have a theory that the high level corporate world and government is leading us into an energy drought; whereby our need for energy constantly outstrips production. This raises the price and profit for producers.

    For an efficient society using energy the way we do requires a thought out and planned government policy. What we have is, a bit of gas, a bit of nuclear and a bit of wind. This is not a policy. It does not benefit the majority of UK inhabitants but it does benefit producers. Producers are predominantly foreign.

    If we invested in developing clean coal technology we could be independent electricity producers within a decade. So why on earth do we have the ludicrous importation of gas, oil, nuclear when for the same money as ‘one’ nuclear power station we could:
    (a) as you say, have all homes fitted with free hot water sources; and, (b) probably included in the £30 billion, a technological breakthrough in clean coal energy production which could have been retrofitted to all our (now demolished) coal fired power stations; and,
    (c) build a few more reservoirs to generate hydro electric power.

    The answer is, of course, that our Government’s (undeclared but) real energy policy is based on maximising profit for energy companies.

    The tactics are clear:
    (1) Create cartels in the production and supply side.
    (2) Create ‘anxious need’ through shortages.
    (3) Suppress technology.
    (4) Prevent investment in viable alternative power sources, such as hydro electric.
    (5) Pretend (laughing up their corporate sleeves) that solar or wind power can provide our needs.

    Creating shortages is hardly a new profit creating model. Recently, banks (yes banks) have been stock piling anything from tuna to aluminium. This rentier tactic elevates the price and profit but makes everyone else poorer.

    And don’t suggest that wind power or solar power is an example of unsuppressed technology. Their importance in the production of energy is small. Aluminium smelters cannot run off windmills. Power need and power production are rarely in sync with windmills or solar.

    We have clean coal energy production. It exists but it requires better methods to encapsulate CO2 in solid form. We have clean nuclear in the form of thorium fission. This is being strangled by the owners of uranium mines.

    I believe that the reason Government makes policy favoring producers is simply because Government has been ‘captured’ by the industry. Industry advisers sit within Government departments and advise policy makers who have usually studied classics or arts. They know nothing and rely on energy insiders to advise them.

    When we had the CEGB it made policy, but outside government. It looked at present and future energy needs and planned accordingly to build reservoirs or power stations. In those days power generation was a public service, not a profit centre. That change has made a world of difference.

    In my view, the whole CO2/global warming scare mongering just generates more profit for energy producers. They don’t just invest in CO2 producing stuff but also in wind and solar. However, Government tries to encourage these alternative sources so these are heavily subsidised. Producers thus win both ways. Average energy bills are now much higher.

    In the mean, time clean, technological advances are not being made because Government is not encouraging it and the energy industry buys all competing patents thereby strangling opposition.

    • I agree with you on this one Chris, the manufactured drought is well under way, however, the UK government has just given the green light for an additional 3/three new reactors at Sellafeild, so the writing for this kind of energy is secured for the next 100 years or so.

      The extra money or labours of the people will then be used against them, just for remaining on-line, and the rush for global collectivism is going to plan.

      Here is a link worth looking at and how some think things have taken place and will be further carried forward for a single world government/communistic.


      The remaining oil will be used to fuel the military machine, while the electricity used for the control networks that drive this madness forwards.

      If someone managed to get enough solar water panels into the paradigm, TPTB would find some way of charging the losses to those who don’t use them.

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