Nuclear industry sets sights on privatisation: Government review could clear the way for early sale

BRITAIN'S nuclear power stations could be privatised by 1995 if proposals by the industry are accepted by the Government during its imminent review of nuclear power.

Over the weekend, senior nuclear executives set out an enthusiastic sales pitch to a meeting of industrialists, civil servants, and City financial analysts. Privatisation has suddenly leapt to the top of the nuclear industry's agenda.

Nuclear Electric, which owns and operates all the nuclear power stations in England and Wales, believes it will get the finance to build a new generation of nuclear stations only from the private sector and that, to attract private investment, it must be privatised.

Market analysts believe that, provided the liabilities for decommissioning old reactors are sorted out, Nuclear Electric could be privatised as it stands and could be a lucrative investment. Because of the way the company was set up, it could be sold without requiring new legislation.

Nuclear Electric needs to build new stations to replace the output from the ageing first-generation Magnox reactors which are coming to the end of their economic lives. At the beginning of this month, the company applied for planning permission to build a twin-reactor station, Sizewell C, adjacent to the new pressurised water reactor nearing completion in Suffolk.

But Sizewell C, even if granted planning permission, could not go ahead because the Government has placed a moratorium on building new reactors. Its previous attempts to privatise nuclear power, along with the rest of the electricity supply industry, foundered in 1989 on the issue of the cost of demolishing old reactors and reprocessing their fuel. It promised to review the moratorium in 1994.

Since 1989, the Treasury has become more willing to underwrite historical liabilities in nationalised industries such as British Coal and British Rail in order to ease privatisation, opening the way for a rethink on how to deal with the nuclear industry's liabilities.

A separate development means it may be possible for the state to take over these liabilities through the agency of the UK Atomic Energy Authority (AEA).

The authority has already split itself into two divisions: one strongly commercial, which the Government is keen to privatise, and a second that will remain in the public sector responsible for the authority's own nuclear sites. Thus the privatisation of the AEA, which is being done for reasons unconnected with nuclear power generation, could open a route for handling historical liabilities from Magnox reactors, a route which would satisfy private investors interested in nuclear power.

Mark Baker, executive director of Nuclear Electric, said: 'We have given the Government the option of privatising us. Whether they take it up is up to them. We have made no secret of the fact that we hope they will.'

However, Scottish Nuclear, which owns the nuclear stations north of the border, appears more wary. James Hann, chairman of Scottish Nuclear, agreed that 'privatisation would be a better way to run the industry' but he believes there are major obstacles relating to waste disposal, decommissioning, and safety regulations to be sorted out first.

News
Shoppers at Selfridges department store in central London
news

News
Jeremy Paxman has admitted he is a 'one-nation Tory' and complained that Newsnight is made by idealistic '13-year-olds' who foolishly think they can 'change the world'.
peopleFormer Newsnight presenter is being touted for a brand new role
News
Michael Buerk in the I'm A Celebrity jungle 2014
people
Voices
File: David Cameron offers a toast during a State Dinner in his honour March 14, 2012
voicesAnd nobody from Ukip said babies born to migrants should be classed as migrants, says Nigel Farage
PROMOTED VIDEO
Have you tried new the Independent Digital Edition apps?
News
ebooksNow available in paperback
Arts and Entertainment
Avatar grossed $2.8bn at the box office after its release in 2009
filmJames Cameron is excited
Arts and Entertainment
Stik on the crane as he completed the mural
art
News
Happy in his hat: Pharrell Williams
people
Arts and Entertainment
Stella Gibson is getting closer to catching her killer
tvReview: It's gripping edge-of-the-seat drama, so a curveball can be forgiven at such a late stage
News
Brazilian football legend Pele pictured in 2011
peopleFans had feared the worst when it was announced the Brazil legand was in a 'special care' unit
News
i100(More than you think)
Sport
Brendan Rodgers seems more stressed than ever before as Liverpool manager
FOOTBALLI like Rodgers as a manager but Liverpool seem to be going backwards not forwards this season
News
The Magna Carta
archaeologyContemporary account of historic signing discovered
Arts and Entertainment
Phyllis Dorothy James on stage during a reading of her book 'Death Comes to Pemberley' last year
peopleJohn Walsh pays tribute to PD James, who died today
Sport
Benjamin Stambouli celebrates his goal for Tottenham last night
FOOTBALL
Life and Style
Dishing it out: the head chef in ‘Ratatouille’
food + drinkShould UK restaurants follow suit?
News
peopleExclusive: Maryum and Hana Ali share their stories of the family man behind the boxing gloves
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs General

Ashdown Group: Senior PHP Developer - OOP, Javascript, HTML, CSS, SQL

£39000 per annum: Ashdown Group: Senior PHP Developer - OOP, Javascript, HTML,...

Austen Lloyd: Commercial / Residential Property - Surrey

Excellent Salary: Austen Lloyd: SURREY MARKET TOWN - SENIOR PROPERTY SOLICITOR...

Recruitment Genius: Graduate Programme - Online Location Services Business

Negotiable: Recruitment Genius: What do you want to do with your career? Do yo...

Recruitment Genius: Senior QC Scientist

Negotiable: Recruitment Genius: This company is a leading expert in immunoassa...

Day In a Page

Homeless Veterans Christmas Appeal: ‘We give them hope. They come to us when no one else can help’

Christmas Appeal

Meet the charity giving homeless veterans hope – and who they turn to when no one else can help
Should doctors and patients learn to plan humane, happier endings rather than trying to prolong life?

Is it always right to try to prolong life?

Most of us would prefer to die in our own beds, with our families beside us. But, as a GP, Margaret McCartney sees too many end their days in a medicalised battle
Thomas Cook's outgoing boss Harriet Green got by on four hours sleep a night - is that what it takes for women to get to the top?

What does it take for women to get to the top?

Thomas Cook's outgoing boss Harriet Green got by on four hours sleep a night and told women they had to do more if they wanted to get on
Christmas jumper craze: Inside the UK factory behind this year's multicultural must-have

Knitting pretty: British Christmas Jumpers

Simmy Richman visits Jack Masters, the company behind this year's multicultural must-have
French chefs have launched a campaign to end violence in kitchens - should British restaurants follow suit?

French chefs campaign against bullying

A group of top chefs signed a manifesto against violence in kitchens following the sacking of a chef at a Paris restaurant for scalding his kitchen assistant with a white-hot spoon
Radio 4 to broadcast 10-hour War and Peace on New Year's Day as Controller warns of cuts

Just what you need on a New Year hangover...

Radio 4 to broadcast 10-hour adaptation of War and Peace on first day of 2015
Cuba set to stage its first US musical in 50 years

Cuba to stage first US musical in 50 years

Claire Allfree finds out if the new production of Rent will hit the right note in Havana
Christmas 2014: 10 best educational toys

Learn and play: 10 best educational toys

Of course you want them to have fun, but even better if they can learn at the same time
Paul Scholes column: I like Brendan Rodgers as a manager but Liverpool seem to be going backwards not forwards this season

Paul Scholes column

I like Brendan Rodgers as a manager but Liverpool seem to be going backwards not forwards this season
Lewis Moody column: Stuart Lancaster has made all the right calls – now England must deliver

Lewis Moody: Lancaster has made all the right calls – now England must deliver

So what must the red-rose do differently? They have to take the points on offer 
Cameron, Miliband and Clegg join forces for Homeless Veterans campaign

Cameron, Miliband and Clegg join forces for Homeless Veterans campaign

It's in all our interests to look after servicemen and women who fall on hard times, say party leaders
Millionaire Sol Campbell wades into wealthy backlash against Labour's mansion tax

Sol Campbell cries foul at Labour's mansion tax

The former England defender joins Myleene Klass, Griff Rhys Jones and Melvyn Bragg in criticising proposals
Nicolas Sarkozy returns: The ex-President is preparing to fight for the leadership of France's main opposition party – but will he win big enough?

Sarkozy returns

The ex-President is preparing to fight for the leadership of France's main opposition party – but will he win big enough?
Is the criticism of Ed Miliband a coded form of anti-Semitism?

Is the criticism of Miliband anti-Semitic?

Attacks on the Labour leader have coalesced around a sense that he is different, weird, a man apart. But is the criticism more sinister?
Ouija boards are the must-have gift this Christmas, fuelled by a schlock horror film

Ouija boards are the must-have festive gift

Simon Usborne explores the appeal - and mysteries - of a century-old parlour game