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FAMILIES face a "nuclear tax" to subsidise the building of Britain's first reactors for more than 20 years, it emerged today.
Secret government plans could force each household to pay £44 on top of its £500 average annual electricity bill to ensure developers are not put off by falling carbon prices.
The Government believes it can only make atomic energy competitive and encourage more reactors to be built by increasing the cost of electricity generated by coal and gas power stations through a levy.
It is feared power companies such a as E.ON and EDF Energy are reluctant to commit to building nuclear power stations because energy prices have fallen, making it harder to recoup the vast cost involved. But the move contradicts promises by ministers that the nuclear industry would no longer benefit from subsidies.
Any carbon tax would take effect from 2015, meaning reactors could operate by 2017.
John Sauven of Greenpeace UK said: "Now firms are getting cold feet over the cost of new nuclear stations, it looks like the Government is trying to sweeten the deal with public money."
Reader views (4)
Why should I give 'tax's ' to a non-uk company who may use it to invest in something that they should already be providing to boost profits for their shareholders.
Anything that is paid for by taxing people in England should belong to them as a nation and not sold off or given away at a whim to pay for MP's Expenses and Local Authorities pensions
- James, City of London
well well, so what's new?
- Max, London, England
Brown has been wrong on everything else. Why should we believe him on this?
- Frank, Bournemouth, England
If energy prices "have fallen" why are we all facing 40% plus increases in our energy bills? And why did the huge German energy company drop its plans to build Britain's biggest new power station a couple of weeks ago stating "their isn't sufficient demand for it"?
We are certainly not being told the half of what's going on with all this.
- Thomas, London
