POWER companies building new nuclear stations in Britain will have to set up independent “pension” funds to pay for the treatment of waste and reactor decommissioning.

Ministers are expected to give the green light to new nuclear plants this week. The nuclear proposals, together with targets on renewable power and the clean-up scheme, will be included in a draft energy bill, full details of which are likely to follow in a fortnight.

Business secretary John Hutton is expected to argue that new nuclear plants are necessary if the UK is to meet its targets on cutting greenhouse gas emissions and to avoid overreliance on imported fossil fuels. Around 10 stations, sufficient to provide more than one-fifth of the UK’s power, are likely to be built, with construction on the first starting around 2012.

But the go-ahead is likely to spark a judicial challenge from environmental groups. The first consultation document on nuclear power had to be redrawn last year after a court action.

Power companies, however, are eager to press ahead. Several utility groups have registered their interest with British Energy, which owns all the current nuclear-power station sites in the UK.

It is widely expected that the new stations will be built on or alongside existing ones because of the availability of grid connections and the support of locals.

Electricité de France (EDF), the French power group, said it will build four new stations in the UK if the government takes the necessary preparatory steps.

“We want to be first, we want to be fast and we want to be safe,” said Vincent de Rivaz, UK chief executive.

EDF is building a new nuclear station in Normandy.

“This could provide a template for the UK,” he said. “The work in Normandy will be drawing to a close in 2012, which is just when we would like to be starting work on the first UK station.”

The French design being used at Normandy is one of four currently being considered for UK licensing by the Nuclear Installations Inspectorate.

Developers will not be allowed to start construction without a decommissioning and clean-up fund in place.

The funds will be ring-fenced so that operators have no call on the money, and are to be run by independent trustees.

Operators will pay a levy of up to 50p per megawatt hour into their fund – a megawatt hour of electricity costs sells for about £35. Eventually, each station fund will be worth several hundred million pounds.

The trustees will be encouraged to invest in long-term assets such as roads, railways and power stations.

Operators may also be required to seed the fund with a one-off cash payment.

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