Clause 50
Energy Bill
5:15 pm
Malcolm Wicks (Minister of State (Energy), Department for Business, Enterprise & Regulatory Reform; Croydon North, Labour)
If a nuclear reactor were to stop after five years, although I do not think that anyone is assuming that that will happen, various things that we have discussed—the liability on the parent company and so on—would have to come into the equation and the arithmetic. In terms of the schedule of payments, operators must put forward their proposals for the schedule of contributions to the independent fund. Of course we favour the front-loading of contributions in the early years of stations’ operating life. However, the Government might accept what might be called straight-line payments, as long as our principles are met——in other words, as long as the fund is sufficient before operations cease and as long as adequate alternative securities are in place to top up the fund should the liabilities crystallise earlier than expected in the way that the hon. Gentleman suggested. Such securities will include insurance or bonds or parent company guarantees. Payments to the fund must begin from day one of electricity generation at the station, as I hope I have emphasised. I hope that helps him a little. It looks as if it did not, but he is of that nature sometimes in his most difficult ways.