BRITAIN is unlikely to go nuclear unless the Government agrees to subsidise the cost, says Public Private Finance (Sept).

Whitehall wants private firms to design, build, operate and ultimately decommission the new nuclear plants; it also expects them to cover the cost of managing nuclear waste. It says that there is a “commercial case” behind this and that nuclear power will be able to compete with its non-nuclear rivals.

EU and global regulations that penalise some forms of pollution, such as carbon emissions, mean that nuclear and renewable energy look attractive to investors at the moment. However, these apply only until 2012, while the new plants will run for more than 30 years — leaving companies with far too much uncertainty.

In its editorial, the magazine says: “The Government is attempting to bully private financiers into both building nuclear plants and shouldering the costs of getting rid of the toxic waste. This would be a foolish thing to do . . . Without bungs, nuclear power isn’t profitable. And so private firms will walk away.”

It says that the Government must find a “realistic way” of paying for waste disposal and decommissioning. “The decision to take the nuclear option is political, not financial. And that’s why the Government will need to dip its hands into its pockets if it wants to go that way.”

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