Topic Title: Nuclear "Contracts for Difference" to changed to "Contracts for Guaranteed 10% Profits..."
Topic Summary: According to the Daily Mail Online that is
Created On: 15 May 2013 12:40 PM
Status: Read Only
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15 May 2013 12:40 PM
According to the Daily Mail Online
"Britain's hopes for new nuclear power may at last be cleared by ministers, with EDF deal set to be struck within weeks"
According the Daily Mail Online a deal may be struck within two weeks...
"But now sources close to the talks say 'the mood music has changed'."
'the mood music has changed' has it! That explains everything then...
"It is now understood that this is likely to be set between £93 and £96 per mega-watt hour.
While ministers wanted a lower rate, in the £80s, EDF said it could not build the reactors for that amount.
To compensate for the higher price, sources say tough terms and conditions in the contract will prevent EDF from making 'massive windfall profits' from the venture - a key political concern because ministers do not want to be seen to be over-paying to the French state-backed firm.
A clause is likely to be inserted that will allow the Government to claw back money from the company to pass back to consumers if this happens, it is understood."
So the Treasury will now write a 'blank cheque' with a claw back term which converts a inflation adjusted "contracts for difference" system, into "contracts for guaranteed 10% profits on unlimited amounts of public money expended" system (CfG-10%-oUAoPM)
In addition the public will be insuring the reactor against most of consequential costs and losses of an accident, giving loan guarantees, paying extra if the project runs over time and budget, subsidising the education and training of new staff, putting a cap on the costs of nuclear waste handling and disposal, subsidising the costs of increasing the size of the spinning power generation reserve etc. etc...
How can the other energy companies compete with this?
Well they can't.
Within 10 years they will have all negociated "contracts for guaranteed 10% profits on unlimited amounts of public money expended" deals from the Treasury.
No doubt Treasury and DECC staff will have gold plated jobs laid on for them, once they leave the civil service [as seems to have been the general practice in the MoD until very recently], in order to compensate them for their valient efforts in negociating a good deal for the energy oligarchs.
Obviously if this nonsense goes ahead and gets made into law, I will quit the Liberal Democrats; eventually when a different party (other than the Toies of the Lib Dems) offers to sweep all this nonsense away I will vote for them instead.
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