A new generation of nuclear power stations will only be possible with vast government subsidies, Sir Menzies Campbell says today.

The Liberal Democrat leader, who raised the subject of paying for more reactors at prime minister's questions last week, will warn that they cost taxpayers and consumers tens of billions of pounds.

The prime minister has repeatedly insisted that nuclear must be "part of the debate" about Britain's future energy supplies.

But the political argument is heating up ahead of the government's energy review, which is set to be published in July.

Speaking at Lib Dem HQ in London, Sir Menzies is expected to say: "Every UK citizen is already paying over £1,500 to clean up the nuclear waste of the last 50 years – and that bill regularly gets revised upwards.

"If the prime minister gets his way and a new generation of nuclear power stations are built, both the taxpayer and consumer will get stung again. Nuclear power is the ultimate stealth tax.

"Evidence from abroad shows nuclear power is not competitive. Last year the US government was forced to offer nuclear subsidies of $13.7bn to persuade investors.

"The new nuclear power plant being built in Finland needed hidden subsidies through export guarantees from France, 30-year-long contracts and government guarantees over future decommissioning and waste.

"The real question for the forthcoming energy review is, where will Blair hide his nuclear subsidy?"

Sir Menzies will instead back developing a mixture of renewable energy sources and a decentralised energy system.

A decentralised network is one where electricity is created closer to the point of use with technologies like small-scale windmills, solar panels or combined heat and power systems, which capture waste heat for conversion into electricity.

After his speech, Sir Menzies will travel to Woking to look at a combined heat and power station and fuel cell project that power a leisure centre.