The UK Government will today reveal plans to subsidise the price paid to nuclear power for generating electricity.
As a result of the subsidies, firms planning to build Britain’s new nuclear stations including EDF and Centrica will stand to gain through the electricity market reforms, according to the Telegraph.
The UK intends to agree to a number of measures for providing investors with certainty for gaining from investments in nuclear and wind power, which carry huge up-front capital costs.
The government will fix the electricity price for low-carbon generators and award contracts to firms that can build capacity at low cost.
The difference between the market price of power and the price at which nuclear or wind or clean coal becomes viable will be paid by the taxpayers.
The UK will propose artificially raising the price of EU carbon allowances to a set level to raise the cost of generating electricity from fossil fuels relative to nuclear and wind.
The government will also introduce restrictions on emissions from coal stations, and propose paying firms to provide back-up power, even when there is no production.