Reform of carbon trading 'could pay for UK nuclear stations'

EDF, the French utility giant, has insisted that reform of the carbon trading system would be a cheap way for consumers to help pay for a new generation of UK nuclear power stations.

By Rowena MasonPublished: 6:39PM GMT 15 Nov 2009
The move could cost the average household an estimated extra £20 to £40 per year.
The power company has been lobbying for an overhaul of the European emissions market, arguing that the market mechanism has failed to incentivise enough investment in low-carbon energy such as nuclear power.
Vincent de Rivaz, chief executive of EDF Energy, would like to see a minimum “floor price” on carbon emissions credits for electricity generators, since the current system has not made the production of clean energy cheaper than by burning fossil fuels.
The Government has resisted such reforms and the TaxPayers’ Alliance has claimed that it could add £227 extra to annual energy bills.
EDF, which has not proposed a specific level for the floor, called such fears “wildly” exaggerated, saying the higher figure disregards industrial usage, overestimates total emissions and assumes that the price of carbon is an entirely new cost.
It believes that an industry estimated floor price of €16.74 (£14.95) to €23.44 for the carbon price would cost each family £20 to £40 extra.
The row over future energy prices comes as a YouGov poll, commissioned by EDF Energy, shows that two-thirds of the population now support nuclear power, up from 55pc three years ago. Speaking in relation to the YouGov poll, Mr de Rivaz said: “Addressing climate change in ways which are most affordable for all energy consumers will be a key focus of the forthcoming Copenhagen Summit.”
However, public support for measures to tackle climate change has waned over the same period, with interest in the global problem down from 80pc to 70pc.
More than a quarter of people now think that the science on climate change is not conclusive.