Surge Of Support For Nuclear Manufacturers Urge Government To Take Action To Solve Power Crisis

British manufacturers are urging the government to build more nuclear power stations to help solve the country's energy crisis.

The Electrical Engineering Federation, which counts some of the country's largest energy users as members, says that if the Government does not step in, the country will be left with "little other than new gas plants''.

In a report on Britain's long-term energy needs, the EEF has calculated that nuclear power will be more affordable than gas if gas prices and the cost of carbon emissions in the European energy trading system remain high.

However, the manufacturing lobby group pointed out that "nuclear plants have particularly high fixed costs compared with gas-fired ones and therefore need to be sure of selling a very large proportion of rated output over a large number of years to ensure an adequate return".

If gas prices fall, gas-fired power stations are significantly cheaper than all the other options.

Jeremy Nicholson, energy adviser to the EEF, pointed to the Olkiluoto plant in Finland, which has been funded by a co-operative of local businesses that have agreed to buy all its output.

He said the government should scrap the climate change levy on businesses for nuclear power and come to a decision on what to do with nuclear waste. That would allow private investors to calculate whether it is profitable to invest in nuclear energy.

Nuclear power is gaining popularity because it does not emit greenhouse gases. China is building 40 power stations.

Renewables are the costliest option and will not deliver the amount of green energy required by the Government, the EEF said.

The EEF also hit out at the carbon trading market, which has pushed up the price of electricity without providing an economic incentive for power companies to switch to cleaner generation.

"We are only going to get an allowance or a price for carbon that other European countries can live with and that may not be adequate to meet the government's objectives," said Mr Nicholson.

The EEF recommends that the current 23 nuclear stations, which will all soon go offline, could be replaced by "eight new 1,200MW units with no loss of capacity".

Martin Temple, the EEF director general, said: "There is no time to lose in putting in place a long-term strategy that will provide a competitive, secure supply."