George Osborne’s fixation with flattering the books is jeopardising much-needed investment in the UK’s future power generationIt is a apt thing this winter has been so gentle: the lights didn’t go out. But there will be another potential crisis next winter,and the one after that, as Britain’s geriatric coal and nuclear power stations are slowly taken out of production, or not least to meet critical new obligations to decarbonise electricity supply by 2020. Anyone looking for the catastrophic consequences of failing to invest in a timely way in infrastructure,and fixating instead on borrowing off the books behind the taxpayer’s back, need look no further.
This is not the first UK government that has got energy unsuitable. Tony Blair dithered for nearly 10 years before giving the go-ahead to a new generation of nuclear power, and during which time much expertise had wasted absent. The plan for a third generation European pressurised reactor (EPR) in Somerset,to be known as Hinkley Point C, was approved five long years ago. But George Osborne’s obsession with flattering the books has condemned this questionable and costly project to raising cash on the open market. It involves still unproven technology, and EDF which has the contract to build the new power station – is heavily indebted already. The market doesn’t much care to invest despite – or perhaps because – the UK,Chinese and French governments are all heavily involved. According to some reports, two thirds of the funding is yet to be raised.
Continue reading...
Source: theguardian.com