Page 36 - Lawtext Utility Law Review Journal Sample

UK CURRENT SURVEY 16[2006/2007]4 ULR 183

• Considering whether the private sector should have the option of investing in new
nuclear power stations which could help to reduce emissions and secure supply
objectives. (A consultation on the future of nuclear power stations will close on 10
October 2007.)
• Banding the Renewables Obligation by 2009 to allow greater support for emerging
renewable technologies (such as offshore wind) rather than established technologies.
The government hopes that by 2020 20 per cent of the United Kingdom’s electricity
supplies will come from renewable sources. (The consultation on the specific bands
proposed closed on 6 September 2007.)
• A consultation before the end of 2007 on ‘capture readiness’ issues in future applications
under section 36 of the Electricity Act and a competition for a commercial-scale
demonstration of carbon capture and storage technologies.
• More flexible market and regulatory arrangements for distributed generation to be
consulted on, and implemented by 2008.
• Increasing the use of biomass in heat generation and introducing a Renewable Transport
Fuel Obligation in 2008–2009 to help increase the share of renewables in transport
fuels.
With regard to security of supply, the White Paper proposes that the United Kingdom:

• establish a new development consent regime for nationally significant infrastructure
to overcome some of the issues with the current planning regime,
• increase gas import capacity by 15 to 30 per cent by 2020 and increase electricity
generation capacity by around 30 to 35 GW over the next 20 years,
• establish new infrastructure to the West of Shetland to maximise recovery of this
country’s remaining North Sea oil and gas, and
• create a unified, single consent regime for offshore gas development and a new offshore
licensing system to facilitate offshore gas storage and unloading of liquefied natural
gas.

The White Paper also sets out various proposals to increase energy efficiency and reduce
greenhouse gas emissions, such as introducing a requirement on all businesses and
households to have Energy Performance Certificates and requiring large businesses to be
subject to a mandatory cap and trade scheme known as the ‘carbon reduction commitment’.
The government’s position is also that the EU Emissions Trading Scheme should form the
hub of a global carbon market.

Nuclear power A consultation on the future of nuclear power has been published alongside the government’s
May 2007 Energy White Paper. The consultation deals mainly with the option of private sector
investment in new nuclear power stations and the government’s evidence for its preliminary
view that this would be in the public interest. The government’s arguments relate to
tackling climate change and ensuring security of energy supply. The current view is that
private investors should be responsible for full decommissioning costs and a share in the
full costs of waste management. Subject to the government’s potential liability for third-
party damage in accordance with international conventions, risk transfer to the private
sector will be an important consideration in deciding whether to proceed with new nuclear
power. The government also sets out proposals to clarify the risks for private sector
involvement including:

• Establishing, legislatively, a nuclear decommissioning and waste management costs
fund or funds to ensure private energy companies can securely meet these costs; the
government favours independent funds being held by bodies such as a trust throughout
the operational life of the power station.
• Government approval of each operator’s waste and decommissioning plan. Compliance
with the plan would then be obligatory for the operator.
• A mechanism so that the public sector continues to bear the cost of existing legacy
waste and the owners of new nuclear plant bear a proportionate share relating to the
cost and disposal of their waste. Some initial infrastructure would be common but it
is expected that new waste would lead to the construction of new waste vaults.
• The handing over of responsibility for low level nuclear waste to the Nuclear
Decommissioning Authority and the reconstituting of the Committee on Radioactive
Waste Management.
• The continued use and involvement of the Managing Radioactive Waste Safety
programme to manage waste.

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