The nuclear review

The United Kingdom Government's Review of the prospects for nuclear power, which commenced in May 1994, has terms of reference in which four key issues are identified. These are: whether privatisation is possible and on what timescale; the most cost-effective management of the public sector's liabilities; whether new nuclear stations can be built on a commercial basis and with private finance; and what particular benefits or disadvantages nuclear power has with respect to diversity, security of supply and environmental impacts. The response of Nuclear Electric to these issues is summarized. The Company believes that the financial obstacles to privatisation which existed when it was established in 1989 have been largely overcome and that privatisation now provides it with the best competitive opportunity in today's electricity market. Significant progress has been made in reducing and quantifying the financial liabilities associated with waste management and reactor decommissioning. To secure its future, Nuclear Electric must be allowed to build new plants to replace the 2500 MW(e) of Magnox capacity which will retire by the end of the century. Longer term wider policy objectives should also take account of the fact that during the last twelve months alone, Nuclear Electric has saved the emission of 60 million tonnes of carbon dioxide. (UK)