Higher bills could fund ‘essential’ nuclear push

Higher bills could fund ‘essential’ nuclear push. Energy Secretary opens door to privately-financed projects amid race to build mini reactors. Households could face higher energy bills to pay for nuclear reactors as the Government puts the power source at the heart of their net zero plans. The Telegraph understands that industry bosses are pushing Ed Miliband to let companies add the costs of building new mini-nuclear reactors to consumer bills. It comes as the Energy Secretary this week described nuclear power as “essential” to Labour’s net zero plans. He urged private companies to build nuclear projects in Britain and said the Government was exploring how it could help. The prospect of higher bills is likely to prove contentious at a time when Mr Miliband’s plan to overhaul the country’s electricity system is already sparking concerns about rising bills. The Government is increasingly putting nuclear at the heart of its plans, with investment in multi-billion pound nuclear projects also seen as a means of reviving the stuttering economy. Sir Keir will next week travel to the UAE where he is expected to court Gulf investment for Britain’s Sizewell C reactor. Mr Miliband told executives at an industry conference this week that nuclear power would play an “essential” role in the Government’s net zero plans. He said: “My message is clear: if you want to build a nuclear project in Britain, my door is open. “On funding, we are exploring how government can help private developers bring advanced nuclear projects to market. “On planning, we will be consulting on a new nuclear planning framework and siting policy next year.” Industry bosses are pushing the Energy Secretary to let companies add the costs of building new mini-nuclear reactors to consumer bills during construction in exchange for private investors and banks providing the bulk of the cash upfront. Investors would then recoup this cost from bill payers over time. The proposals would replicate how London’s £5bn “super sewer” was built, with supporters arguing that the arrangement keeps borrowing costs low without requiring the Government to be involved directly. One Whitehall source said the Government was “open to a lot more private sector dynamism on nuclear” but stressed the idea would only work if it involved “less taxpayer funding and more private funding”. New funding models are being explored for the mini-nuclear reactors being developed by industry, rather than full-scale plants. X-Energy, a nuclear company backed by Amazon, told The Telegraph it was prepared to invest £20bn into Britain but said it first needed “clarity” from the Government on how the project could be financed. It is understood the company favours a model that would allow the cost to be paid for through bills.Some nuclear plant developers also want taxpayer-funded grants to help them with early development costs, The Telegraph understands. Whitehall sources stressed it was too early to discuss potential funding models but said the objective would be to leverage private, rather than public cash.