UK’s nuclear plans thrown into disarray
BRITAIN’s nuclear power plans were thrown into chaos last night as problems escalated at Japanese company Toshiba.
The corporate giant owns a 60pc stake in the planned NuGen power plant in Cumbria that is supposed to eventually supply up to 6m homes as a key part of the Government’s energy strategy.
But Toshiba has been rocked by huge losses stemming from a £5bn writedown at its US nuclear unit.
The crisis has cast doubt over its plans for the £10bn plant in Moorside near Sellafield which is supposed to provide up to 8pc of the country’s energy.
It marks the latest setback to the Government’s plans to reduce carbon emissions and keep the lights on.
Ministers are also facing calls to step in with cash to help Hitachi build a plant at Wylfa in Anglesey while another plant at Hinkley Point in Somerset has been approved but sites using the same reactors abroad are facing serious delays.
Chaos reigned as Toshiba failed to release its financial results, saying it was on track to make losses of £2.7bn and chairman Shigenori Shiga stepped down.
On NuGen, Toshiba said it was ‘committed’ for now but was looking to sell its stake. That suggests Moorside will only go ahead if new investors can be found.
Unions called for greater clarity. Justin Bowden, GMB’s energy secretary, said: ‘The latest declared state of affairs should be the subject of considerable scrutiny by Government to ensure everything possible is done to ensure this project goes ahead.’
The picture was further complicated by uncertainty over the future of Westinghouse, the Toshiba subsidiary at the heart of its financial problems. Westinghouse is supplying the reactors for NuGen but Toshiba may sell the business. The reactors are going through regulatory approval and changing them could mean significant delays.
Unions have warned the UK’s energy supply is at risk unless the Government steps in. Moorside is one of six new nuclear projects in the pipeline in the UK.
The others are Hinkley Point C, Wylfa Newydd, Sizewell C, Bradwell and Oldbury.
Toshiba said it needed more time to probe internal reports suggesting ‘inappropriate pressure’ may have been used by Westinghouse managers in talks over the acquisition of another US business that led to current problems.
But ministers insisted the project was still on track. Business and Energy Secretary Greg Clark said: ‘I have spoken to Toshiba and NuGen. I welcome the continued commitment of the Nugen consortium to the Moorside project.
NuGen chief executive Tom Samson said he was exploring ‘a universe of opportunities’ to bring in additional investment.
THE French company planning to build the new Hinkley Point nuclear power station in Somerset saw profits slump last year.
State-owned EDF said earnings dropped 6.7pc to £14bn in 2016 as revenues fell 5.1pc to £60bn.