The nuclear policy of the UK government in undergone through revised probe as the firm behind a £20 bn reactor construction in Wales has been paused. According to the media reports of Japan Hitachi will hang work on its Horizon division’s Wylfa Newydd plant this week.
The company says no official decision has been yet made. But the scrapping of the project will affect 400 jobs and the Somerset Hinkley Point power station as the only new UK reactor still being constructed.
In November, the planning of construction a nuclear power station at Moorside in Cumbria was paused after Toshiba declared it was twisted its Nu Generation subsidiary, which was behind the project. The government carries on that it is still in talks with Hitachi about Wylfa.
A representative for the Department for Business, Industrial Strategy and Energy said: “ Negotiations with Hitachi on agreeing on a deal that provides value for money for consumers and taxpayers on the Wylfa project are ongoing. They are commercially sensitive and we do not comment on speculation.”
The current developments are likely to push the government to make smooth the future of nuclear plant deals for the potentials investors, in what one authority has called a “desperate leap in the dark ”.
The tactics, which has been already used for the other infrastructure plots including the £ 4.2bn Thames Tideway “super-sewer”, permits investors to receive returns before the projects have been finished. It also permits the Treasury to keep the expenses of the books by retrieving the investment from the bills of the consumer rather than through direct taxation.