Showing posts with label high electricity prices. Show all posts
Showing posts with label high electricity prices. Show all posts

Tuesday, 1 April 2014

The EU consultation on state aid for the proposed new nuclear power plant, Hinkley Point C. Quick copy and paste submission. Closed 7/4/2014

 The consultation closed 7/4/2014.  THANK YOU to everyone who wrote in.

This is the submission done by Global 2000 ,which they say you are welcome to copy and paste  - Just add your name, email  address and the date at the end.  Send to stateaidgreffe@ec.europa.eu  
You don't have to send it all and if there are any other points you want to raise, the scruffily put together facts in my last blog might be useful. There are some good links there too.



To: EU Commission - Directorate-General for Competition
E-mail: stateaidgreffe@ec.europa.eu

Subject: Hinkley Point C
I am very concerned about the current plans of the UK government to make a new nuclear power plant possible by granting enormous support for it.
We would like to encourage the EU Commission to stick to its clear analysis, because we as CITIZENS/ NGOS/ BUSINESS in the UK do not want to be forced into paying a fixed high electricity price to EDF for several decades, with no chance of the possibly of making use of lower electricity prices.
It does not seem fair to me, that one type of energy receives this amount of support in addition to the fact that EDF would get this size of contract without even having had to win a tender, because EDF simply received this deal competition-free.
The supplier AREVA became known in the past years for having severe problems with the construction of its “flagship reactor” EPR on time: The ongoing cost increases! Delay of completion is ongoing both at Olkiluoto and Flamanville, so it cannot be expected that EDF would complete the EPR reactors at Hinkley according to schedule. The delay at the Finnish site Olkiluoto is already 5 years, Areva was reported as having left the construction site a month ago, so no new reliable date is known.
There are many more possibilities to secure the electricity supply for the UK. It does not enhance energy diversity and independent supply if the enormous amount of up to £17 billion in public subsidies is spent on two units of EPR.
We are convinced that the state aid for Hinkley Point C would be at the expense of other energy forms in the UK, because the money set aside for the support of low-carbon projects up to 2020 (counterparty body) will be spent mostly on the new NPP.
The Carbon Connect report[1] shows that the investors can expect bigger returns on the Hinkley project than with comparable projects thus proving that the Hinkley Point C project would not only receive state-aid, but to such a high level, that it is over-compensation.  Furthermore the EU Commission made clear that the existence of market failure need be doubted, because in Finland and in France the reactors were ordered without granting state aid as is now planned for Hinkley.   The UK government’s plan for the next NPP, is utterly incomprehensible to us, because the EU Commission characterized the chosen financing model (CfD – Contracts for Difference) with the following words:
…the CfD is conceived to entirely eliminate market risks from the commercial activity of electricity generation, for a period of time, the initial 35 years of operations of the plant.”
This is an extreme preference for one type of electricity generation, one specific project of one specific investor, which we believe the EU Commission will not see as compatible with the rules of the Common market.
 From.
Email:
First name:
Last name:
Date:



             http://www.policyconnect.org.uk/cc/research/report-future-electricity-series-part-3-power-nuclear

Monday, 24 March 2014

Your voice in the EU. about the proposed new nuclear power plant at Hinkley Point C in Somerset.UK

A few weeks ago, Global 2000, part of Friends of The Earth, Austria, contacted me about writing to the EU commission for competition.  They already have a brilliant, fast, submission  for people to send, but it's in German, so  here are some scruffy facts and a quick DIY guide for people I've put together in English. It would be lovely if lots of us wrote.
                                         *****************************
Update: "copy and paste letter" now available in next post  http://dandelionithappens-dendelion.blogspot.co.uk/2014/04/the-eu-consultation-on-state-aid-for.html

                                           **************************     

The EU commission opened a public consultation  on March 7th for a month about the U.K. state aid case for the new nuclear power plant, Hinkley Point C. 

The EU Directorate- General for Competition would really like to hear from you!

The more people who write, the better; you don’t have to be an expert.  
…..  You can email them at  stateaidgreffe@ec.europa.eu  
 You have until April 7th to write and it’s an opportunity to tell them how the possibility of higher electricity prices will affect you, especially if you are running a business.      *Help on how to write at the end of the post! 

 Background:   The government would give EDF a strike price of £92.50/MWh … (around twice the current rate) for the electricity. This would be index linked and fixed for 35 years from the time the nuclear power plant is supposed to start production in about 15 years’ time.
This means  that householders’, businesses’, industries’, schools’… electricity bills might have to cover much larger energy costs than from renewables, as well as their suppliers’ costs.

The UK government would also give EDF a very large loan to help build the nuclear power plant as well as other benefits.  If they, later, build two more of the same design at a second site at Sizewell B in Suffolk, the strike price would fall to 89.50/MWh.
Meanwhile, the cost of solar and wind are falling and expected to go on falling, as are the costs of other low carbon renewable energies. 

 Solar energy:
 The STA  [The Solar Trade Association]  has asked for a strike price of £91/MWh in 2018 and expects this to fall to £86 by 2019, falling year on year thereafter, paid over 15 not 35 years and with no nuclear style small print permitting a possible increase in strike price once those terms are set.”
…Quote from  Seb Berry, head of public affairs at Solarcentury and board member of the STA.
 Why did the Government fix a higher strike price for 2019 than they asked for?
http://www.solarpowerportal.co.uk/news/decc_unveils_new_solar_strike_prices_for_2015_onwards_2356
  
Wind energy
The European Wind Energy Association says onshore wind costs could fall to £48/MWh by the 2020s potentially making it the U.K.’s cheapest power source.
(Also from page 6 Item 7)

And that’s just mentioning two of the low carbon renewable energies!

The EU commission commented on the affordability of electricity from the proposed new nuclear plant:
“The measures, moreover, could hardly be argued to contribute towards affordability – at least not at current prices, when it will instead and most likely contribute to an increase in retail prices….”

Also, If you have any connections with the renewable power industry, or you know anyone who has….the  EU Directorate-General would especially like to hear from you and them.
 One of the points the commission made was:
The Commission notes in this respect that a support  mechanism which is specific to nuclear energy generation might crowd out alternative investments in technologies or combinations of technologies, including renewable energy sources,………”

 The NFLA,CNFE and Stop Hinkley Media release says:
Renewable technologies will be unfairly constrained by the size of the Levy Control Framework funds available, the bulk of which will probably be used up by Hinkley Point C after 2023, despite the fact that solar and offshore wind are likely to be cheaper by then.”

Expert opinions have already been submitted, but this truly is a public consultation.... Will you be able to export to Europe  if other countries are paying a fraction of our electricity costs by 2023?   If someone comes up with a great idea for a new renewable product are the funds going to be there to help?

This is a real chance for people power .... don’t  let’s waste it! You can ask the European Competition Commissioner  to declare the State Aid which the UK Government proposes to give to Hinkley Point C as illegal.

*How to write to the commissioner.
 There is a list of important points you might like to add in the media release  below. Use one point, or use them all, it doesn’t matter.

Your letter
_________________________________________________________________________________
To
The European Commission
The Directorate-General for Competition
State aid Registry
Rue de la Loi/Wetstraat 200
1049 Bruxelles/Brussel
BELGIQUE/BELGIË
From
first name *
Last name *
Email *                                                                                                               
Your Message
subject *
opinion *
  
Date
__________________________________________________________________________________

There is more information on each of the points at
and  facts at  No 2 Nuclear Power
‘From “No Public Subsidy “ to “State Aid”’
and this is the link to the full EU document!

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