Nuclear economics and privatisation

In this paper the compatibility of the British government's two policies of privatisation of the electricity supply industry and the development of nuclear power is considered. The structures that a privatised electricity supply industry might have looked at, especially those which might have greatest effect on the position of nuclear power. Only three alternatives for Sizewell-B - a pressurized water reactor, an advanced gas-cooled reactor or a large coal-fired power station were considered. The economic case was made using a discount rate o 5% -lower than would be taken by private sector companies. This has an important effect on the economic advantage of one fuel over another. Changes in the electricity supply industry with privatisation are discussed. These might lead to consideration of a greater range of options for meeting demand (eg renewable energy sources) as the emphasis would be on profitability. (UK)