European insurance law changes threaten nuclear build

subscribe

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

weed zapper

A robot is killing weeds by zapping them with electricity

LONDON - On a field in England, three robots have been given a mission: to find and zap weeds with electricity before planting seeds in the cleared soil.

The robots — named Tom, Dick and Harry — were developed by Small Robot Company to rid land of unwanted weeds with minimal use of chemicals and heavy machinery.
The startup has been working on its autonomous weed killers since 2017, and this April launched Tom, its first commercial robot which is now operational on three UK farms. The other robots are still in the prototype stage, undergoing testing.

Small Robot says robot Tom…

READ MORE
The Innovative Solution Bringing Electricity To Crisis Stricken Areas

The Innovative Solution Bringing Electricity To Crisis Stricken Areas

READ MORE

tornado survivor

Survivors of deadly tornadoes may go weeks without heat, water, electricity, Kentucky officials say

READ MORE

tube-strikes-disrupt-london-economy

Tube Strikes Disrupt London Economy

READ MORE

Salmon and electricity at center of Columbia River treaty negotiations

READ MORE