European insurance law changes threaten nuclear build

UNITED KINGDOM - The nuclear industry is in talks with the government to thrash out a solution to insurance problems that threaten to undermine plans to build at least eight new power stations by 2023.

The legal arm of the Nuclear Industry Association (NIA) is working with the Department for Business, Enterprise & Regulatory Reform to deal with changes to the law due next year that will increase nuclear power operators’ liability from about £140m to £500m.

A European protocol means the UK government must also extend the range of claims to such events as the effect on property prices of a nuclear accident.

Lawyers have warned that insurers are not prepared to underwrite the risk, and EU laws that stop governments giving financial aid to industries restrict the role the state can play.

David Gollancz, partner at law firm Field Fisher Waterhouse, is part of the NIA’s legal group. He said: “The current thinking is maybe the government can set up a quasi-insurance scheme to see new build get started.”

The insurance problems have coincided with the collapse of the sale of British Energy to French electricity firm EDF this week. The sale was seen as crucial to the governmentÂ’s plans as British Energy controls the likely sites of the new reactors.

Bill Harris, head of nuclear work at Turner & Townsend, called on the government to restore confidence after the collapse of the deal.

He said: “It needs to reassure the industry that it is still committed to the nuclear renaissance programme.”

Related News

Battery-electric buses hit the roads in Metro Vancouver

VANCOUVER - TransLink's first battery-electric buses are taking to the roads in Metro Vancouver as part of a pilot project to reduce emissions.

The first four zero-emission buses picked up commuters in Vancouver, Burnaby and  New Westminster on Wednesday. Six more are expected to be brought in.

"With so many people taking transit in Vancouver today, electric buses will make a real difference," said Merran Smith, executive director of Clean Energy Canada, a think tank at Simon Fraser University, in a release.

According to TransLink, each bus is expected to reduce 100 tonnes of greenhouse gas emissions and save $40,000 in fuel costs…

READ MORE

Hydro-Quebec shocks cottage owner with $5,300 in retroactive charges

READ MORE

coal plant

First US coal plant in years opens where no options exist

READ MORE

northern pass commission

New Hampshire rejects Quebec-Massachusetts transmission proposal

READ MORE

hydro quebec

Hydro-Québec puts global ambitions on hold as crisis weighs on demand

READ MORE